Seoul Court Weighs Arrest Warrants for Eight Executives in Petrochemical Price-Fixing Case

A Seoul court began reviewing requests for arrest warrants Friday for eight current and former executives of major South Korean petrochemical companies in a wide-ranging price-fixing investigation.

The Seoul Central District Court was scheduled to question the executives before deciding whether they should be detained while the investigation continues. Those facing warrant hearings include OCI Chief Executive Kim Yoo-shin and former PKC Chief Executive Jang Young-soo. The court could issue its decisions later Friday.

The executives are accused of violating South Korea’s fair trade law. Arrest-warrant proceedings determine whether suspects should be held before trial; they do not decide guilt or innocence. The allegations have not yet been resolved by a final court judgment.

Prosecutors suspect seven companies—LG Chem, Hanwha Solutions, Aekyung Chemical, OCI, Lotte Fine Chemical, PKC and Unid—coordinated prices over several years for eight petrochemical products. The products under scrutiny include polyvinyl chloride, plasticizers, caustic soda and hydrochloric acid.

Investigators allege the companies exploited disruptions in naphtha supplies linked to the Middle East conflict to raise prices, generating illicit profits totaling several trillion won. The scale of the alleged gains and the number of companies involved make the case a significant test of competition-law enforcement in one of South Korea’s core industrial sectors.

Naphtha is a central feedstock for petrochemical production. Polyvinyl chloride, commonly known as PVC, is a synthetic plastic used in construction materials, pipes and electrical wire insulation. Plasticizers are additives that make PVC softer and more flexible. Caustic soda and hydrochloric acid are also widely used industrial chemicals, meaning changes in their prices can affect costs across multiple manufacturing and construction supply chains.

The warrant review centers on whether the legal conditions for pretrial detention are met for each executive. The court’s decisions will shape the immediate course of the investigation but will remain separate from any later determination on the underlying price-fixing accusations.

The case also places several of the country’s best-known chemical producers under judicial scrutiny at a time when the petrochemical industry is navigating volatile input costs and supply pressures. Prosecutors have framed the alleged conduct as coordinated action that converted those disruptions into unusually large unlawful gains. The companies and executives will have opportunities to contest the allegations as the proceedings advance.