Four S. Korean refiners indicted in $17 billion price-fixing case
Quick Look
- Prosecutors have indicted four major South Korean refiners, HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, along with company officials, in a 26 trillion-won ($17 billion) price-fixing case.
- The companies are accused of colluding to raise petroleum prices following the U.S.-Iran war, undermining market competition.
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Why It Matters
Prosecutors in South Korea have indicted four major domestic refiners and company officials for alleged price-fixing totaling 26 trillion won ($17 billion).
SEOUL, July 6 (Yonhap) -- Prosecutors said Monday they have indicted four major domestic refiners in a 26 trillion-won (US$17 billion) price-fixing case following the outbreak of the U.S.-Iran war earlier this year.
HD Hyundai Oilbank Co., SK Energy Co., GS Caltex Corp. and S-Oil Corp. face charges 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, according to the Seoul Central District Prosecutors Office.
Multiple company officials, including those from HD Hyundai Oilbank's pricing department, have also been indicted in the case.
Prosecutors accused HD Hyundai Oilbank and SK Energy of direct collusion valued at 14.2 trillion won and the other two of matching the rigged price hikes, undermining market competition by a total of around 26 trillion won.
Their 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, resulting in the overall price increases in the country, according to the prosecution.
Prosecutors believe that the refiners imposed aggressive price hikes despite having stockpiled considerable amounts of crude oil when the war began.
"The collusion that came immediately after the war was not a temporary deviation but chronic collusive practices being made in an international crisis situation," the prosecution said.
Open Questions
- What are the specific penalties for the indicted companies?
- Will this impact global oil prices?
- Are there further investigations planned?
