0
Seoul Central District Prosecutors’ Office. / Park Sung-il

Prosecutors are questioning executives at major South Korean companies over allegations that they colluded to fix prices of petrochemical products for years.

According to legal sources on Sept. 10, the Fair Trade Investigation Department of the Seoul Central District Prosecutors’ Office, led by Chief Prosecutor Na Hee-seok, summoned OCI Vice Chairman Kim Yoo-shin, former PKC CEO Jang Young-soo and LG Chem executives for questioning on suspicion of violating the Monopoly Regulation and Fair Trade Act. Questioning of the CEO of Hanwha Solutions is reportedly already complete.

Prosecutors suspect seven companies — OCI, LG Chem, Hanwha Solutions, Aekyung Chemical, Lotte Fine Chemical, PKC and UNID — of colluding for years over eight petrochemical products, including polyvinyl chloride (PVC), plasticizers, caustic soda and hydrochloric acid.

PVC, which is primarily made from naphtha, is widely used in construction materials, pipes and electrical cable coatings.

Prosecutors believe the companies disrupted market order and made unfair profits after naphtha supplies became unstable due to the Middle East war. Investigators carried out raids on Aug. 5 and secured related materials.

                                                                                                        Jeong Min-hoon