KFTC Conducts On-Site Investigation Into Collusion Allegations Among Plasticizer "Big 4" Including LG Chem, Hanwha Solutions, OCI, and Aekyung Chemical

KFTC Investigates LG, Hanwha, Aekyung, and OCI

Alleged Price Collusion Amid Supply Instability Concerns

The Korea Fair Trade Commission (KFTC) has launched an extensive investigation into major domestic companies that produce plasticizers and polyvinyl chloride (PVC), which are core raw materials for plastics and basic petrochemical materials.

According to industry sources and government departments on May 14, the KFTC dispatched investigators to the plasticizer and PVC-related business divisions of four companies—LG Chem, Hanwha Solutions, Aekyung Chemical, and OCI—at their Seoul and Yeosu locations earlier in the day to conduct on-site inspections.

The KFTC is reportedly focusing on whether these companies discussed or coordinated price levels in advance during the process of raising plasticizer and PVC sales prices, using the restricted naphtha supply caused by the Iran war as a pretext. Plasticizers are additives that soften stiff plastics such as PVC and are essential materials widely used in daily life, including flooring, wallpaper, and automotive interiors.

Currently, LG Chem and Hanwha Solutions are the main suppliers in the domestic PVC market, and all four companies under investigation produce plasticizers.

Meanwhile, an official from the KFTC maintained a cautious stance, stating, "We cannot confirm whether an individual case is under investigation or provide further details."

This content was produced with the assistance of AI translation services.