[Exclusive] Prosecution Raids MK Electron, LT Metal, and Duksan Hi-Metal Over Suspected Semiconductor Material Price-Fixing

Extension of Crackdown on Unfair Practices
Following Investigations into Bid Rigging and Platform Abuse

The prosecution has launched an intensive investigation into three companies—MK Electron, LT Metal, and Duksan Hi-Metal—on charges of colluding to fix the prices of key materials supplied to major semiconductor manufacturers, including SK hynix. The investigation is expected to focus on whether these suppliers, who hold vital links in the semiconductor supply chain, abused their market dominance to gain unfair profits.

According to the legal community on May 29, the Crime Proceeds Recovery Division of the Seoul Central District Prosecutors’ Office (headed by Chief Prosecutor So Jungsoo) began conducting searches and seizures from the previous day at three semiconductor materials, parts, and equipment companies, including MK Electron, on suspicion of price collusion.

The three companies are suspected of colluding on the delivery prices and supply volumes of materials essential for semiconductor manufacturing processes. Prosecutors are focusing on whether there was any illicit coordination, so-called "collusive arrangements," in the process of increasing or adjusting supply prices. In particular, these three companies are key vendors for SK hynix, a global leader in the memory semiconductor market.

This forced investigation is interpreted as part of the prosecution's ongoing efforts to strictly crack down on "market order disrupting acts" that undermine industrial competitiveness. Previously, the prosecution has achieved a series of results in investigations into price collusion among flour milling and sugar companies, bid rigging in Korea Electric Power Corporation (KEPCO) tenders, and unfair practices by major platforms, continuing its strong stance against antitrust and unfair trade practices.

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