Prosecutors have launched a compulsory investigation into domestic petrochemical companies suspected of colluding on prices of polyvinyl chloride (PVC), plasticizers, and other products by taking advantage of the Middle East war.
According to legal sources, the Seoul Central District Prosecutors' Office Fair Trade Investigation Division (headed by Na Hee-seok) on the morning of the 5th was raiding seven locations, including LG Chem(051910), Hanwha Solutions(009830), Aekyung Chemical(161000), OCI(456040), Lotte Fine Chemical(004000), PKC(001340), and UNID(014830), on suspicion of violating the Fair Trade Act.
These corporations are suspected of colluding for years on prices for a total of eight petrochemical product categories, including PVC, plasticizers, caustic soda, and hydrochloric acid, after the Middle East war destabilized supplies of naphtha.
PVC is a synthetic plastic that uses naphtha as a main raw material and is widely used for building materials, pipes, and wire insulation. Plasticizers are chemical additives that make PVC softer and more flexible.
The Korea Fair Trade Commission in May also detected signs of such collusion by petrochemical companies and conducted an on-site investigation.