Four major oil refiners indicted in South Korea for price-fixing collusion

South Korea's top prosecutors have indicted four major oil refiners and several executives on charges of violating fair trade laws, accusing them of colluding to inflate prices amid global instability. HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, along with three executives from HD Hyundai Oilbank and one from GS Caltex, face trial.

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We confirmed that collusion by price decision department executives at HD Hyundai Oilbank and SK Energy on the timing and scale of price increases was the main cause of the oil price surge.

The Seoul Central District Prosecutors' Office stated that its investigation into the "reality of the unprecedented surge in domestic oil prices" following the U.S.-Iran conflict revealed that price-fixing by executives at HD Hyundai Oilbank and SK Energy was the primary cause. The prosecution explained that GS Caltex and S-Oil followed the price leaders, triggering a rapid spike in the domestic market.

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Because GS Caltex and S-Oil followed the price leadership of these two companies, the domestic oil market price surge was triggered in a short period.

Prosecutors also investigated and indicted companies for practices such as "all-you-can-buy" contracts and post-settlement systems with independent gas stations. The indictment alleges that the four refiners used their dominant position to unilaterally set and dictate prices, preventing gas stations from seeking cheaper supplies. Executives were also charged with destroying evidence after learning about an impending on-site investigation by the Fair Trade Commission.

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The four major oil refiners unilaterally set and notified prices using their superior position, disadvantaging gas stations that could not receive petroleum products through cheaper channels.

Additionally, three refiners are accused of submitting false reports to the Ministry of Trade, Industry and Energy, understating actual price increases. The prosecution pledged to cooperate with the ministry and ensure that the defendants receive sentences commensurate with their crimes, vowing continued efforts against fair trade violations.

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We will ensure that the defendants receive sentences commensurate with their crimes and will continue to actively respond to various fair trade violations.