Why are prosecutors accusing seven petrochemical companies of price fixing?

They suspect the companies colluded for several years to raise prices for eight petrochemical products. Prosecutors say the firms took advantage of supply disruptions in naphtha caused by the Middle East conflict.

What products were involved in the alleged petrochemical price-fixing case?

The suspected collusion involved eight products, including PVC, plasticizers, caustic soda and hydrochloric acid. PVC was described as a synthetic plastic widely used in construction materials, pipes and wire insulation.

Arrest warrants sought for 8 petrochemical executives over alleged price fixing

Q: Who are the petrochemical executives prosecutors sought arrest warrants for in Seoul?

Prosecutors requested arrest warrants for eight current and former executives of domestic petrochemical companies. The group includes OCI CEO Kim Yoo-shin and former PKC CEO Jang Young-soo.

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Summary

Prosecutors on Monday requested arrest warrants for eight current and former executives of domestic petrochemical companies over alleged price fixing involving several trillion won in Seoul. The executives include OCI CEO Kim Yoo-shin and former PKC CEO Jang Young-soo. Prosecutors suspect seven companies colluded for several years to raise prices for eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid. The companies are also suspected of taking advantage of naphtha supply disruptions caused by the Middle East conflict.

Key Facts

The Seoul Central District Prosecutors Office said the eight suspects include OCI CEO Kim Yoo-shin and former PKC CEO Jang Young-soo.
Prosecutors suspect seven companies, including LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid, of collusion.
The alleged scheme involved eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid.
Prosecutors carried out simultaneous raids on the companies on Aug. 5.
Kim and Jang were questioned as suspects on Thursday after the raids.

By Yonhap

Published Sep 14, 2026 4:53 pm KST

The building of the Seoul Central District Prosecutors' Office, Aug. 4 / Yonhap

Prosecutors on Monday requested arrest warrants for eight current and former executives of domestic petrochemical companies suspected of engaging in price fixing involving several trillion won.

The eight include Kim Yoo-shin, chief executive officer (CEO) of OCI, and Jang Young-soo, former CEO of PKC, according to the Seoul Central District Prosecutors Office.

Prosecutors suspect that seven companies — LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid — colluded for several years to raise prices for eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid.

The companies are suspected of making illicit profits totaling several trillions of won by taking advantage of supply disruptions in naphtha caused by the Middle East conflict.

Prosecutors conducted simultaneous raids on the companies on Aug. 5, and subsequently questioned Kim and Jang as suspects on Thursday.

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

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