South Korea Indicts Four Oil Refiners for $17 Billion Price-Fixing

The Seoul Central District Prosecutors' Office indicted four major South Korean oil refiners—HD Hyundai Oilbank Co., SK Energy Co., GS Caltex Corp., and S-Oil Corp.—on Monday for fixing petroleum prices. Prosecutors allege the companies inflated gas costs following the outbreak of war between the United States, Israel, and Iran in February 2026, despite possessing significant crude oil stockpiles.

Investigators claim HD Hyundai Oilbank and SK Energy directly coordinated the timing and scale of price hikes, generating 14.2 trillion won in unfair gains. GS Caltex and S-Oil subsequently matched these increases, bringing the total market impact to 26 trillion won, or approximately $17 billion. The crackdown follows warnings from President Lee Jae-myung to curb inflation and a recent increase in collusion penalties by the Korea Fair Trade Commission.

Beyond price-fixing, the refiners face charges for violating the fair trade act by forcing independent gas stations into unfair contracts through lawsuits and the suspension of benefits. Several employees were also indicted, including a GS Caltex executive accused of deleting data and other staff from HD Hyundai Oilbank and GS Caltex charged with destroying evidence during a March inspection by the Fair Trade Commission. One source indicated that SK Energy avoided certain indictments through a leniency program.