Prosectors Raid 7 Petrochemical Companies Over Alleged PVC Price Fixing Exploiting Middle East War

Prosecutors have launched a coercive investigation into domestic petrochemical companies suspected of colluding on prices of polyvinyl chloride (PVC) and plasticizers by exploiting the Middle East war.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (led by Senior Prosecutor Na Hee-seok) is securing related materials today (August 5) by conducting raids on seven companies, including LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC, and Unid.

These companies are suspected of violating the Fair Trade Act by pre-arranging price hikes for eight petrochemical products, including PVC, plasticizers, caustic soda, and hydrochloric acid, after naphtha supply and demand became unstable due to the Middle East war.

PVC, which uses naphtha as its main ingredient, is a synthetic plastic widely used in building materials, pipes, and wire insulation.

Plasticizers are chemical additives that make PVC softer and more flexible.

Previously, the Fair Trade Commission also detected such circumstantial evidence of price fixing among petrochemical companies and launched an on-site investigation in May.

(Photo: Yonhap News)
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