Prosecutors raid three SK hynix suppliers over alleged semiconductor materials collusion

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[Financial News] Prosecutors have launched a compulsory investigation into semiconductor materials suppliers over allegations that they colluded on the prices and supply volumes of key materials delivered to major chipmakers, including SK hynix.
The Criminal Proceeds Recovery Division of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor So Jeong-su, is conducting raids on three semiconductor materials, parts and equipment companies — MK Electron, LT Metal, and Duksan Hi-Metal — on charges of violating the Fair Trade Act through collusion.
The raids began the previous day. It has not yet been decided whether they will be completed on the day or continue for longer.
The companies are suspected of coordinating in advance the delivery prices and supply volumes of materials that are essential to semiconductor manufacturing.
In particular, the three firms are key partners supplying related materials to SK hynix, a major player in the global memory chip market.
Prosecutors are reportedly focusing on whether there were anti-competitive collusive practices during the process of raising or adjusting supply prices.
Meanwhile, prosecutors have recently expanded investigations into fair trade cases that undermine market order, including alleged price collusion among starch and sugar companies, bid rigging in projects ordered by Korea Electric Power Corporation (KEPCO), and abuse-of-power allegations involving a major platform company.
 
scottchoi15@fnnews.com Choi Eun-sol Reporter