SK Energy and Hyundai Oilbank Under Investigation by Korea's Fair Trade Commission for Suspected Price Manipulation

The Korea Fair Trade Commission (KFTC) announced on October 7 that it has initiated formal proceedings against SK Energy and Hyundai Oilbank, accusing the two refiners of exchanging fuel pricing information and colluding to set prices over a period of approximately four years. The commission's investigation department submitted a review report outlining alleged violations and proposed sanctions, triggering the committee's adjudication process. Investigators estimate that sales affected by the suspected conduct totaled about 44.1 trillion won (approximately $33 billion), or roughly 30 billion won daily (about $22.4 million). The commission determined that the companies' actions likely seriously violated regulations prohibiting price manipulation and illegal exchange of competitively sensitive information, recommending corrective orders and economic penalties. Reports indicate that South Korea's gasoline, diesel, and kerosene markets are highly concentrated; last year, SK Energy, Hyundai Oilbank, GS Caltex, and S-Oil accounted for about 98% of the market share, with SK Energy and Hyundai Oilbank combined holding 49.1%.