South Korean prosecutors indicted four major oil refiners — HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil — for allegedly violating fair trade laws. Prosecutors alleged the companies colluded to increase domestic fuel prices following the Middle East conflict.

Prosecutors said the investigation began after domestic oil prices rose following the U.S.–Iran conflict. They further alleged that HD Hyundai Oilbank and SK Energy colluded on oil sales amounting to 14.2 trillion won, which equates to approximately $9.2 billion. GS Caltex and S-Oil are alleged to have mirrored the prices established by HD Hyundai Oilbank and SK Energy.

The alleged anticompetitive impact of this collusion is estimated at roughly 26 trillion won. Prosecutors determined that collusion by pricing executives at two of the firms regarding the timing and extent of price increases was the primary driver. The prosecution characterized the alleged collusion as a "long-standing, systemic practice that surfaced during a time of global crisis."

In March, South Korean President Lee Jae Myung stated on social media that oil refiners and corporations involved in price-fixing would face accountability. Lee vowed that authorities would "deploy all lawful measures against unethical business practices." S-Oil declined to comment on the indictment.

Why It Matters

The indictments involve major South Korean oil refiners and allegations of financial impropriety totaling 26 trillion won. The case follows a period of heightened geopolitical tension in the Middle East, which prosecutors identified as a trigger for the alleged price increases. The proceedings indicate a focus on corporate accountability in South Korea concerning practices affecting consumer prices during times of international instability.