Prosecutors seek arrest warrants for 8 petrochemical executives over price fixing
Eight current and former executives, including OCI CEO Kim Yoo-shin, face arrest warrants over alleged multi-trillion won price fixing.
Quick Look
South Korean prosecutors requested arrest warrants for eight current and former petrochemical company executives, including OCI CEO Kim Yoo-shin, for allegedly conspiring to fix prices and make illicit profits worth trillions of won.
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Why It Matters
Seven petrochemical companies allegedly colluded to raise prices for eight products, taking advantage of naphtha supply disruptions.
SEOUL, Sept. 14 (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.
Open Questions
- Will the court issue the requested arrest warrants?
- What is the exact total amount of illicit profits?
