South Korea indicts four oil refiners for alleged $17 billion price collusion

South Korean prosecutors have indicted the nation's four leading oil refiners on charges of colluding to manipulate fuel prices, a move estimated to have inflicted anti-competitive damages totaling $17 billion (26 trillion won). The companies named in the indictment are HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, according to a report by Yonhap News Agency citing prosecution sources.

The alleged collusion reportedly took place among pricing managers at HD Hyundai Oilbank and SK Energy shortly after the outbreak of conflict in Iran earlier this year. Prosecutors claim these individuals discussed the scale and timing of price hikes for their petroleum products, with GS Caltex and S-Oil subsequently following suit. The significant financial impact of this alleged price-fixing scheme has drawn considerable attention.

While a spokesperson for the Seoul Central District Prosecutors' Office did not immediately confirm the report, the indictment signals a serious escalation in the investigation. SK Innovation, the parent company of SK Energy, and S-Oil declined to comment on the matter. HD Hyundai Oilbank and GS Caltex also did not immediately respond to requests for comment. This development follows recent changes in South Korea's antitrust regulations, where the Korea Fair Trade Commission earlier this year increased the penalty for collusion to a minimum of 10% of sales related to the violation, a substantial rise from the previous minimum of 0.5%.