South Korean petrochemical executives arrested in 15 trillion won price-fixing probe

Two former executives from South Korean petrochemical companies have been arrested on charges of violating the Fair Trade Act through a massive price-fixing scheme. The Seoul Central District Court issued arrest warrants for a former sales manager at PKC and a former business division head at LG Chem, citing concerns regarding the destruction of evidence.

The prosecution's investigation involves seven companies—LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC, and Unid—suspected of conspiring to raise prices on polyvinyl chloride (PVC) and plasticizers. Prosecutors estimate the scale of the illegal profits from this cartel to be over 15 trillion won, making it one of the largest price-fixing cases investigated by the prosecution.

Authorities allege the companies exploited market instability caused by geopolitical tensions in the Middle East, which disrupted the supply of naphtha, a key raw material. While two executives were detained, arrest warrants for six others, including the former CEO of PKC and the CEO of OCI, were rejected by the court to protect their rights to defense.