South Korea indicts 4 oil refiners for $9.7 billion price-fixing

South Korean prosecutors have indicted four major oil refiners and their executives on charges of price-fixing, involving a total of at least 14.2 trillion won ($9.7 billion). The companies indicted are HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil. This case is the largest single price-fixing incident in the nation's history.

Prosecutors allege that these companies colluded to inflate oil prices. Their investigation revealed that the surge in domestic oil prices immediately after the Iran war began on February 28 was not solely due to unstable international conditions. Instead, the refiners' price-fixing activities significantly influenced the price hikes.

Specifically, the Seoul Central District Prosecutors' Office indicted HD Hyundai Oilbank and executives from SK Energy for allegedly agreeing to exchange price information and substantially increase prices. SK Energy was not indicted due to its voluntary reporting and leniency under the "self-disclosure reduction system." Prosecutors found evidence that the two companies engaged in collusion from July 2024 to February 2025, including pre-sharing price information. Following the outbreak of the Iran war, SK Energy reportedly raised prices by 30-40 won per liter before HD Hyundai Oilbank followed suit, as per their agreement.

Prosecutors believe GS Caltex and S-Oil also raised their prices in line with the actions of HD Hyundai Oilbank and SK Energy. The estimated scale of collusion between HD Hyundai Oilbank and SK Energy alone amounts to 14.2 trillion won in sales. With the involvement of GS Caltex and S-Oil, the total transaction volume of petroleum products affected by the price-fixing is estimated to be around 26 trillion won ($17.7 billion).

Furthermore, the four major oil refiners were indicted for unfair trade practices, such as unilaterally notifying self-operated gas stations of prices. Executives from HD Hyundai Oilbank and GS Caltex were also indicted for allegedly destroying evidence after learning of an on-site investigation by the Fair Trade Commission.

“

The domestic oil companies' oil price collusion suspicions have been investigated by the prosecution, and the four major oil companies, HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, and four executives have been indicted on charges of violating the Fair Trade Act for collusion amounting to at least 14.2 trillion won.