Six Petrochemical Companies Indicted for Price-Fixing
Six petrochemical firms in South Korea face indictment for colluding to fix prices.
Six petrochemical firms in South Korea face indictment for colluding to fix prices.
On October 1, 2026, prosecutors in South Korea announced the indictment of six major petrochemical companies for price-fixing activities. The companies, including LG Chem, Aekyung Chemical, and OCI, are accused of colluding to inflate prices on products worth over 16 trillion won (approximately $11.75 billion).
The Seoul Central District Prosecutors Office revealed that over 40 current and former officials from these firms were also indicted. Notable figures include OCI's Vice Chairman and CEO Kim Yu-shin and former PKC CEO Jang Young-soo. The allegations suggest that these companies manipulated prices for eight key petrochemical products, such as PVC and plasticizers, from November 2021 to April 2023.
Despite the government's financial support of 146.5 billion won to bolster production amid rising international oil prices, the companies continued their collusion. This situation raises significant concerns about market integrity and the broader implications for the South Korean economy.
The indictment highlights ongoing issues within the petrochemical sector, prompting calls for stricter regulations to prevent similar practices in the future.
