Six Korean Petrochemical Companies Indicted in $11.75 Billion Price-Fixing Case

South Korean prosecutors have indicted six petrochemical companies and 43 current and former executives and employees over allegations that they fixed prices for industrial products worth 16.39 trillion won, or about $11.75 billion.

The Seoul Central District Prosecutors Office said Thursday that LG Chem, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid were sent to trial in connection with the alleged cartel. The case centers on eight petrochemical products, including polyvinyl chloride, plasticizers, caustic soda and hydrochloric acid.

Prosecutors allege that the companies coordinated price increases from November 2021 through April 2026. The products involved are important inputs across construction and manufacturing. PVC, which is commonly produced from naphtha-based materials, is widely used in pipes, building materials and electrical-wire insulation. Plasticizers are additives used to make PVC softer and more flexible, while caustic soda and hydrochloric acid have broad industrial applications.

Among the individuals indicted were OCI Vice Chairman and Chief Executive Kim Yu-shin and former PKC Chief Executive Jang Young-soo. A former head of PKC's sales division and a former head of an LG Chem business division were indicted while detained, according to prosecutors. The remaining defendants include other current and former officials from the six companies.

An indictment represents a formal accusation and does not establish guilt. The allegations will be tested in court, where the companies and individuals will have an opportunity to respond.

Prosecutors also highlighted the relationship between the alleged conduct and public support extended to the industry. They said the collusion continued even after the government provided 146.5 billion won to support petrochemical production during a sharp increase in international oil prices linked to conflict in the Middle East. That claim is likely to increase scrutiny of whether public assistance benefited producers while purchasers faced prices allegedly shaped by coordination rather than competition.

The breadth of the case makes it significant for South Korea's competition enforcement as well as for the petrochemical sector. It involves several major producers, a multiyear period and products used throughout industrial supply chains. Court proceedings will determine whether prosecutors can prove that the defendants reached and implemented unlawful agreements on pricing. The outcome could also influence compliance practices in an industry facing volatile feedstock costs, weak margins and pressure to restructure.