Prosecutors seek warrants for 8 current, former petrochemical executives on suspicion of price-fixing

Prosecutors on Monday requested arrest warrants for eight current and former executives of domestic petrochemical companies suspected of engaging in price-fixing involving several trillion won.

The eight include Kim Yoo-shin, CEO of OCI, and Jang Young-soo, the former CEO of PKC, according to the Seoul Central District Prosecutors' Office.

Prosecutors suspect that seven companies — LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid — colluded for several years to raise prices for eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid.

The companies are suspected of making illicit profits totaling several trillions of won by taking advantage of supply disruptions in naphtha caused by the Iran war. 

Prosecutors conducted simultaneous raids on the companies on Aug. 5, and subsequently questioned Kim and Jang as suspects on Thursday.

PVC, primarily made from naphtha, is a synthetic plastic widely used in construction materials, pipes and wire insulation, while plasticizers are chemical additives that make PVC softer and more flexible.

Yonhap