South Korea court weighs detention of eight petrochemical executives

  • Seoul Central District Court began warrant reviews for eight current and former petrochemical executives.
  • Prosecutors allege seven companies colluded on eight products; alleged scope exceeds 15 trillion won.
  • Kim Yoo-shin and Jang Young-soo were among the executives named in the case.

The Seoul Central District Court began warrant reviews on the 18th for eight current and former executives accused of violating South Korea's Fair Trade Act. Prosecutors allege that PKC, OCI, LG Chem, Hanwha Solutions, Aekyung Chemical, Lotte Fine Chemical and Unid coordinated prices for eight petrochemical products, including polyvinyl chloride, plasticizers, caustic soda and hydrochloric acid. The alleged illicit profits are estimated at approximately 15 trillion won ($10.8 billion), while prosecutors say the total scope of the suspected collusion exceeds 15 trillion won. Judge Lee Ji-young began questioning the suspects at 9:20 a.m., with OCI CEO Kim Yoo-shin's hearing scheduled for 4 p.m. Decisions on detention were expected as early as that evening. Prosecutors say the companies exploited naphtha supply instability linked to the Middle East conflict, potentially affecting downstream industries such as construction, automotive and electronics. The case could influence future trial proceedings, Korea Fair Trade Commission sanctions and possible damages claims if the alleged collusion is confirmed.

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