Petrochemical Executives Face Arrest Hearings Over Trillion-Won Collusion Allegations Amid Middle East Conflict

The arrest decisions for current and former executives of domestic petrochemical companies suspected of orchestrating a multi-trillion-won collusion scheme are set to be determined as early as today, September 18.

Judge Lee Ji-young, the senior judge in charge of warrants at the Seoul Central District Court, began holding pre-arrest interrogations at 9:20 a.m. today for eight individuals, including former PKC CEO Chang Young-soo, who are facing charges of violating the Fair Trade Act to review the necessity of their detention.

An arrest warrant hearing for OCI CEO Kim Yu-shin is scheduled for 4:00 p.m.

Arriving at the court at around 9:10 a.m. today, former CEO Chang headed straight into the courtroom without answering questions from reporters regarding whether he admits to the charges or who led the discussions on price hikes.

According to prosecutors, seven companies—including PKC, OCI, LG Chem, Hanwha Solutions, Aekyung Chemical, Lotte Fine Chemical, and Unid—are suspected of colluding in advance over several years to raise prices on eight petrochemical products, such as PVC, plasticizers, caustic soda, and hydrochloric acid.

Prosecutors suspect that these companies reaped trillions of won in illicit profits by disrupting market order when the supply and demand of naphtha became unstable due to the Middle East conflict.

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

Previously, prosecutors launched a compulsory investigation on August 5 by simultaneously raiding the offices of the seven companies on charges of violating the Fair Trade Act.

They reportedly summoned and questioned key suspects, including CEO Kim and former CEO Chang, on September 10.

The results of the hearings for these individuals are expected to be released as early as late tonight.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.