South Korean prosecutors indict four major refiners over alleged fuel price collusion

South Korean prosecutors indicted four major domestic oil refiners on Monday, accusing them of violating the country’s fair trade laws through alleged fuel price collusion. The case centers on an accusation that executives at the companies coordinated the timing and scale of domestic fuel price increases during a period of heightened global instability following the U.S.-Iran conflict, according to CNBC’s report citing local coverage.

The companies named in the indictment were HD Hyundai Oilbank, SK Energy, GS Caltex and S-Oil, prosecutors said. Prosecutors alleged the conduct was not a one-off problem but reflected what they described as a longer-standing, systemic practice that emerged more clearly during a global crisis. The prosecution also described the alleged collusion as a primary driver behind sharp domestic price moves after the outbreak of the U.S.-Iran conflict.

CNBC reported, citing Yonhap News Agency, that prosecutors alleged HD Hyundai Oilbank and SK Energy colluded on oil sales valued at 14.2 trillion won, and that when the conduct was extended to GS Caltex and S-Oil, the total anticompetitive impact prosecutors estimated was about 26 trillion won. The report said the allegations included claims that GS Caltex and S-Oil mimicked the pricing set in the coordination between the first two firms.

Prosecutors said the investigation was initiated after domestic oil prices rose sharply following the U.S.-Iran conflict. CNBC’s account said prosecutors found that coordinated pricing by executives at HD Hyundai Oilbank and SK Energy was the key factor behind the increases, and that other refiners allegedly followed the established pattern. In addition to naming the firms, the reporting indicates prosecutors framed the case as enforcement against corporate practices that, if proven, would undermine competition during times when consumers face higher costs.

The investigation and indictment come amid public attention from South Korean political leadership focused on fuel prices. CNBC reported that in March, President Lee Jae Myung warned on X that refiners and other corporations engaged in price fixing would be held accountable and that the government would use all lawful measures against unethical business practices.

The immediate next step is the formal prosecution process following the indictments. The court will determine whether the alleged conduct amounts to illegal coordination under South Korea’s fair trade statutes, and whether any executives or corporate defendants will face additional charges beyond the indictment at this stage.

CNBC also noted that executives and companies involved did not provide a uniform public response at the time of reporting. S-Oil, the report said, declined to comment. Shares of the refiners and their controlling owners were reported higher in early trading after the indictment announcement, though the market reaction will be separate from the legal outcome of the case.