Two Petrochemical Executives Arrested for Price-Fixing Amid Middle East Conflict

Amid escalating Middle East tensions triggered by the U.S.-Iran conflict, two executives at domestic petrochemical companies have been arrested on charges of colluding on the prices of petrochemical products worth 15 trillion won.

The Seoul Central District Court issued arrest warrants for two petrochemical executives, surnamed Bae and Hwang, citing concerns that they may destroy evidence.

Earlier, the Fair Trade Investigation Division of the Seoul Central District Prosecutors Office requested arrest warrants for eight petrochemical company executives on charges of violating the Monopoly Regulation and Fair Trade Act.

The court explained the decision to dismiss the arrest warrants for the remaining six individuals by stating that there is little risk of them destroying evidence or fleeing.

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 for eight petrochemical product categories, including PVC, plasticizers, caustic soda, and hydrochloric acid.

Prosecutors suspect that as naphtha supply and demand became unstable due to the Middle East conflict, these companies disrupted market order and amassed more than 15 trillion won in ill-gotten gains.

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