Seven South Korean petrochemical giants, including LG Chem, were raided on suspicion of colluding to manipulate price increases for chemical raw materials such as PVC.

By SKYSEVEN Chemical Technical Team · 2026-08-06

Share:

Prosecutors launch compulsory investigation; 7 petrochemical companies raided simultaneously

On August 5, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office in South Korea officially launched a compulsory investigation, conducting seizure and searches on the offices of LG Chem, Hanwha Solutions, AK Chem, OCI, Lotte Fine Chemical, PKC, and UNID, a total of 7 domestic petrochemical companies, as well as the relevant responsible persons involved. Investigators stationed themselves at the company sites to obtain core evidence such as internal meeting minutes, inter-company communication documents, quotation ledgers, transaction contracts, and price adjustment summaries, in order to verify the specific facts of price collusion. These materials will serve as key basis to whether to prosecute subsequently.

This investigation targets companies suspected of violating South Korea's "Fair Trade Act." Clues in the possession of the prosecutors indicate that the companies involved were not engaged in immediate, temporary collusion, however rather conducted prior communication and coordination regarding the timing and magnitude of price increases to 8 types of petrochemical items over a period of several years. Through coordinated operations, they raised market selling prices and squeezed the profit margins of downstream processing companies. Market sources suggest that the companies allegedly seized the opportunity brought by fluctuations in naphtha feedstock due to geopolitical conflicts in the Middle East to simultaneously push up quotations to terminal chemical items, amplifying the price increases resulting from rising costs.

Previous

Asia set to lead propylene capacity growth

Next

Towngas Calls for Green Methanol Bunkering Push in Hong Kong

Quick inquiry

Create

Inquiry Sent

We will contact you soon