Prosecutors indict 4 major refiners in 26 tln-won price-fixing case after U.S.-Iran war outbreak

Lead

South Korean prosecutors announced Monday that they have indicted four major domestic refiners—HD Hyundai Oilbank Co., SK Energy Co., GS Caltex Corp. and S-Oil Corp.—in connection with an alleged price-fixing scheme worth approximately 26 trillion won (US$17 billion) that followed the outbreak of the U.S.-Iran war earlier this year.

The indictments, issued by the Seoul Central District Prosecutors Office, accuse the companies of violating the fair trade act by engaging in collusive activities to raise prices of petroleum-related goods after the war triggered sharp rises in global energy prices in late February. Two officials from HD Hyundai Oilbank's pricing department were also indicted, according to Yonhap News Agency.

Coverage Comparison

Yonhap News Agency, which reported the story, provided two accounts of the same development. In one version, the focus was on the indictment of HD Hyundai Oilbank and its company officials, with the case described as 'believed to be worth 26 trillion won.' The other version presented the indictment more broadly, naming all four companies and stating the full value of the case up front. Both reports relied on information from the Seoul Central District Prosecutors Office.

The two reports also differed slightly in the level of detail about additional charges. One article included a note about separate charges being added in its last paragraphs, while the other did not. Both covered the core allegations: that HD Hyundai Oilbank and SK Energy colluded directly, while GS Caltex and S-Oil matched their price hikes.

Key Claims

Prosecutors accused HD Hyundai Oilbank and SK Energy of direct collusion valued at 14.2 trillion won, while GS Caltex and S-Oil were accused of matching the rigged price hikes. Together, the alleged conduct undermined market competition by a total of about 26 trillion won. SK Energy was not indicted under a leniency program, and the other two companies also did not face charges because the alleged activities were not deemed to fall under fair trade law violations.

The investigation found that HD Hyundai Oilbank and SK Energy colluded on the timing and scale of price increases for petroleum products after the outbreak of the war. GS Caltex and S-Oil, which determine price levels based on those of HD Hyundai Oilbank and SK Energy in the domestic market, followed the price hikes, leading to overall price increases in the country.

Prosecutors believe that the refiners imposed aggressive price hikes despite having stockpiled considerable amounts of crude oil when the war began. In a statement, the prosecution said: "The collusion that came immediately after the war was not a temporary deviation but chronic collusive practices being made in an international crisis situation."

Additional Charges

Separately, the prosecution also indicted the companies on charges of violating the fair trade act by forcing independent gas stations into unfair contracts, according to Yonhap. In one report, it was noted that employees from HD Hyundai Oilbank and GS Caltex have been accused of destroying evidence in connection with the Fair Trade Commission's on-site inspection of the refiners.