[Edaily Reporter BAEK JU-A ] Prosecutors investigating allegations of price-fixing in the petrochemical industry have requested arrest warrants for eight individuals, including OCI CEO Kim Yu-shin and former PKC CEO Jang Young-soo. Following last month’s raids on seven petrochemical companies—including LGCHEM,LTD and HANWHA SOLUTIONS—and the successive summons of key executives, prosecutors have now moved to take the suspects into custody. The scale of the price-fixing in this case is reportedly the largest ever among price-fixing cases investigated by prosecutors.

According to legal circles on the 14th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office (headed by Chief Prosecutor Na Hee-seok) filed arrest warrants that day against eight individuals—including CEO Kim, former CEO Jang, and Bae, head of the Sales Division at PKC—on charges of violating the Fair Trade Act.

The prosecution alleges that seven companies— LGCHEM,LTD(051910), HANWHA SOLUTIONS(009830), AEKYUNG CHEMICAL(161000), OCI(456040), LOTTE Fine Chemical(004000), PaikkwangIndustrial(001340), UNID(014830), and seven other companies are suspected of having colluded in advance over the past several years to raise prices on eight petrochemical products, including polyvinyl chloride (PVC), plasticizers, caustic soda, hydrochloric acid, chlorine, and hypo. Prosecutors allege that these companies took advantage of supply disruptions in naphtha caused by the war in the Middle East to disrupt market order and reap trillions of won in unjust profits.

On the 5th of last month, prosecutors conducted search and seizure operations targeting these seven companies and approximately 80 related individuals, securing relevant documents. Following an analysis of the seized materials and interviews with those involved, they began full-scale investigations into the companies’ executives.

On the 10th, they summoned and questioned former CEO Jang—who is suspected of violating the Fair Trade Act—along with Executive Vice President A, head of LGCHEM,LTD’s PVC and plasticizer business division, and CEO Kim. It is reported that the investigation into the CEO of HANWHA SOLUTIONS has already been concluded.

PVC is a synthetic plastic produced from raw materials such as naphtha. It is used in various fields, including construction materials, pipes, and electrical wire insulation. Plasticizers are chemical additives that impart softness and flexibility to PVC. Price increases for these products could lead to higher cost burdens for the construction and manufacturing industries.

Observers note that this investigation aligns with the government’s stated policy of strictly responding to price manipulation, as it specifically targets price manipulation involving petroleum-based processed products. The scale of this case is reportedly the largest among antitrust cases investigated by the prosecution over the past 78 years. The previous record was a 14 trillion won oil refinery price-fixing case indicted last July.

The Fair Trade Commission also launched on-site inspections of petrochemical companies last May. In June, it expanded the scope of its investigation to include products such as caustic soda. Since the prosecution has moved to request arrest warrants following the summons of key suspects, it is suggested that the results of the prosecution’s investigation may be released before those of the Fair Trade Commission’s probe.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office has handled a series of large-scale cartel cases this year involving key industries that affect people’s livelihoods, such as food and oil refining. Last February, it indicted 52 executives and employees on charges of participating in a cartel worth approximately 10 trillion won in the flour, sugar, and electricity sectors. At the time, President Lee Jae-myung expressed his encouragement via social media (SNS), stating, “The prosecution has achieved significant results.”

Last April, the division referred CJ CheilJedang Corp(097950),Daesang(001680), and Sajo CPK to trial on charges of price-fixing for starch syrup worth over 10 trillion won. Subsequently, in July, it indicted four oil refiners—SK Energy, GS Caltex, HD HYUNDAI Oilbank, and S-Oil—on charges of oil price-fixing. It also handled the case involving improper support provided to the family of the chairman of the Sampyo Group and cases involving the abuse of dominant market position by accommodation platforms such as Yanolja and Yogiyo.