Prosecutors have requested arrest warrants for executives at South Korean petrochemical companies suspected of colluding for years to fix prices of polyvinyl chloride (PVC) and plasticizers.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office, led by chief prosecutor Na Hee-seok, requested arrest warrants on the 14th for eight people, including OCI Chief Executive Kim Yu-shin and former PKC Chief Executive Jang Young-soo, according to legal sources.
The companies are suspected of agreeing in advance to raise prices on eight petrochemical products, including PVC, plasticizers, caustic soda and hydrochloric acid, after conflict in the Middle East destabilized naphtha supplies. The alleged conduct violates the Fair Trade Act. Prosecutors believe the companies reaped trillions of won in illicit gains through the scheme.
PVC, which is made primarily from naphtha, is a key material for construction supplies, pipes and electrical wire coatings. Plasticizers are chemical additives that make PVC softer and more flexible.
Prosecutors launched a forced investigation into seven companies on Aug. 5, seizing documents related to the alleged collusion. On Sept. 10, they questioned Kim, Jang and the head of LG Chem's PVC and plasticizer division.
