Seoul to consider arrest of 8 petrochemical company executives — Korea Herald
The Seoul Central District Court in South Korea was set to hold a hearing on issuing arrest warrants for eight current and former executives of local petrochemical companies. They are suspected of a years-long conspiracy to raise product prices. According to investigators, this may have generated illegal profits of several trillion won for the companies.
Case suspects
Among the eight suspects are OCI CEO Kim Yoo-shin and former PKC CEO Chang Yong-su. They are suspected of violating fair trade legislation. The court's decision on the arrest warrants could be made later that same day, Korea Herald reports.
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Prosecutors' suspicions
Prosecutors suspect seven companies—LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC, and Unid—of coordinating price increases for eight petrochemical products. These include polyvinyl chloride, plasticizers, caustic soda, and hydrochloric acid.
According to the investigation, the companies may have taken advantage of disruptions in petroleum feedstock supplies caused by the conflict in the Middle East. Polyvinyl chloride, which is mainly produced from this feedstock, is a synthetic plastic used, among other things, in construction materials, pipes, and wire insulation. Plasticizers are chemical additives that make polyvinyl chloride softer and more flexible.
