Arrest warrants sought for 8 petrochemical executives over alleged price fixing

According to the Seoul Central District Prosecutors Office, arrest warrants have been sought for eight individuals associated with domestic petrochemical companies. The accused include current and former executives from seven companies - LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC, and Unid. Prosecutors allege that these entities conspired for several years to fix prices on eight petrochemical products, such as PVC, plasticizers, caustic soda, and hydrochloric acid.

The alleged price fixing is said to have resulted in illicit profits totaling several trillions of won, exacerbated by supply disruptions in naphtha caused by the Middle East conflict. On August 5, simultaneous raids were conducted on the companies, leading to the questioning of Kim Yoo-shin, CEO of OCI, and Jang Young-soo, former CEO of PKC, as suspects.

PVC, a synthetic plastic used in construction materials, pipes, and wire insulation, is primarily made from naphtha, a component of the products under investigation.