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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s antitrust regulator has launched an on-site investigation into major petrochemical companies over allegations of price collusion involving key materials such as polyvinyl chloride (PVC) and plasticizers.
According to industry and government sources on May 14, the Korea Fair Trade Commission (KFTC) dispatched investigators to the headquarters of LG Chem, Hanwha Solutions, OCI, and Aekyung Chemical to secure related documents.
The probe is focused on whether the companies coordinated price levels and timing of price increases for PVC and plasticizers, allegedly taking advantage of supply constraints in naphtha triggered by geopolitical tensions in the Middle East.
PVC is a widely used synthetic plastic applied in packaging materials, flooring, and piping, while plasticizers—chemical additives derived from naphtha—are used to enhance the flexibility of PVC products. LG Chem and Hanwha Solutions are key suppliers of PVC, while all four companies under investigation produce plasticizers.
Prior to the on-site inspections, the KFTC had been collecting data from petrochemical firms on pricing mechanisms and cost pass-through timelines.
Industry observers say the investigation aligns with the government’s broader efforts to strengthen supply chain monitoring following disruptions linked to Middle East tensions. Authorities have been closely tracking supply and demand conditions for naphtha and related downstream products on a daily basis.
The KFTC has previously stated that it would promptly investigate any signs of unfair practices, including collusion, identified during its monitoring of essential petrochemical product prices. In late March, the regulator also launched a probe into the paint industry over suspected collusion related to price hikes driven by rising raw material costs.
A KFTC official declined to comment on the specifics of the ongoing case.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065613255063271
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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