Six petrochemical companies indicted for price-fixing

Prosecutors on Thursday indicted six petrochemical companies and more than 40 current and former company representatives on charges of fixing prices on products worth more than 16 trillion won ($11.77 billion).

LG Chem, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid allegedly colluded for several years to raise prices for eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid, the Seoul Central District Prosecutors’ Office said.

Prosecutors also indicted 43 current and former executives and employees of the six companies, including OCI Vice Chairman and CEO Kim Yu-shin and former PKC CEO Jang Young-soo, on price-fixing charges.

A former head of PKC’s sales division, surnamed Bae, and a former head of LG Chem’s business division, surnamed Hwang, were referred to trial while in detention.

The suspects are accused of price-fixing the eight petrochemical products, valued at 16.4 trillion won, between November 2021 and April.

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

Prosecutors alleged that the suspects continued their price-fixing collusion despite the government’s provision of 146.5 billion won to support petrochemical production following a sharp rise in international oil prices caused by the conflict in the Middle East.

Yonhap