Prosecutors have indicted a group of executives and employees at oil companies accused of running a price-fixing scheme worth 26 trillion won related to fuel prices. Prosecutors concluded that HD Hyundai Oilbank and SK Energy colluded in advance to raise prices, while GS Caltex and S-Oil followed suit, triggering a broad market price surge.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office, headed by chief prosecutor Na Hee-seok, said Wednesday that after investigating a fuel-price disruption case involving HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, which oligopolize the domestic refining market, it had indicted four corporations and a total of eight individuals on charges including violations of the Fair Trade Act. Those indicted include the head of HD Hyundai Oilbank's pricing department, its responsible manager, its head of legal affairs, and GS Caltex's head of domestic sales. Among them, the head of HD Hyundai Oilbank's pricing department was indicted while in custody.
According to prosecutors, the direct collusion in this case amounted to 14.2 trillion won. When conscious parallel behavior arising from GS Caltex and S-Oil following prices is included, the investigation found that competition-restricting effects worth approximately 26 trillion won occurred. Prosecutors concluded that, given the oligopolistic structure of the four companies, which hold a 98.6% share of the domestic refining market, collusion by some companies led to price increases across the entire market.
Prosecutors launched the investigation to determine the background behind the sharp rise in domestic petroleum product prices immediately after the U.S.-Iran war. The investigation confirmed that pricing officials at HD Hyundai Oilbank and SK Energy had discussed the timing and scale of price increases in advance right after the war. At the time, the four major refiners had already stockpiled a substantial amount of crude oil, making it difficult to explain the price surge through cost increases alone, prosecutors explained.
Prosecutors also confirmed that the collusion between the two companies was not a one-time offense. HD Hyundai Oilbank and SK Energy exchanged price information and coordinated pricing policies from July 2024, and when the U.S.-Iran war broke out, SK Energy carried out collusion by raising prices 30 to 40 won per liter higher than HD Hyundai Oilbank, the investigation found.
Prosecutors determined that GS Caltex and S-Oil also raised prices by directly following the increases of HD Hyundai Oilbank and SK Energy, using competitors' prices as a key benchmark. Such conduct constitutes typical conscious parallel behavior that damages competitive order, but because it is not subject to criminal punishment under the current Fair Trade Act, the two companies were not indicted on this charge.
Separately from the price-fixing, prosecutors also took issue with the "full-purchase contract" practice of the four major refiners. In signing contracts with independent gas stations, the refiners required them to purchase only the refiners' own products and unilaterally notified them of supply prices. Gas stations that violated the contracts were subjected to disadvantages such as large damage claims or suspension of bonus card payments, effectively forcing transactions, the investigation found.
Prosecutors judged that this distribution structure increased the burden on consumers. As independent gas stations were unable to choose cheaper suppliers, competition was blocked, and as a result, rising petroleum product prices were passed on to consumers. A survey by the Korea Oil Station Association also found that 83.3% of independent gas stations said they had no substantive choice in their contracts.
During the investigation, circumstances of evidence destruction to obstruct the Fair Trade Commission's inquiry were also confirmed. HD Hyundai Oilbank's head of legal affairs is accused of obtaining information about the FTC's on-site inspection in advance and then instructing the deletion of competitors' price data, while GS Caltex's head of domestic sales is accused of ordering the deletion of price-related internal messenger conversations. Prosecutors indicted them together on charges including investigation obstruction and evidence destruction.
In addition, prosecutors confirmed that three refiners—HD Hyundai Oilbank, SK Energy, and S-Oil—falsely reported supply prices lower than the actual figures to the Ministry of Trade, Industry and Energy immediately after the war. Prosecutors said they would share relevant materials with the ministry to pursue institutional improvements, while continuing to respond sternly to fair trade crimes that disrupt the national economy.
