Prosecutors raid 7 petrochemical firms over price-fixing allegations

South Korean prosecutors have launched a sweeping investigation into alleged price-fixing cartels involving seven major petrochemical companies. The probe, led by the Seoul Central District Prosecutors' Office, targets collusion in the pricing of Polyvinyl Chloride (PVC), caustic soda, and plasticizers. Companies under scrutiny include Hanwha Solutions, LG Chem, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC, and Unid.

This action is framed as a continuation of the government's recent emphasis on strictly combating market-disrupting practices. Following a previous investigation into oil price collusion, the current crackdown broadens its scope to include various processed goods derived from petroleum. Unlike past cartel investigations that typically focused on a single product like sugar or flour, this inquiry encompasses multiple items simultaneously, suggesting a larger scale and wider scope.

The investigation is significant as it may represent one of the final major corporate cases handled directly by the prosecutor's office. Amendments to the criminal procedure law will transfer all investigative powers to a new agency, the Corruption and Economic Crimes Investigation Agency, starting October 2nd. Prosecutors reportedly initiated this extensive investigation, deeming it necessary for a thorough and specialized inquiry into price-gouging activities before the legal transition. They advocate for continued joint investigations even after the new agency's establishment to prevent investigative gaps in complex areas like fair trade cases, which require high-level legal judgment.