Korea FTC moves to sanction SK Energy, Hyundai Oilbank over fuel price-fixing
In short
South Korea's Fair Trade Commission said on October 7 that it sent an examiner's report to SK Energy and Hyundai Oilbank, opening a deliberation over suspected collusion on gasoline, diesel and kerosene prices from February 2022 to March 2026. Investigators estimate the affected revenue at about 44.1 trillion won and have proposed corrective measures and a fine. Prosecutors had already indicted the two refiners on collusion charges in July, and Yonhap reported an allegation that employees deleted data during the investigation.
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The Fair Trade Commission said on October 7 that it had submitted an examiner's report to its commission and sent it to SK Energy and Hyundai Oilbank, opening a deliberation procedure over suspected collusion in gasoline, diesel and kerosene prices. Hankook Ilbo described the report as the equivalent of a prosecution indictment in a competition case. Dong-A Ilbo and Seoul Shinmun reported that the two companies are now subject to sanctions proceedings. [ 1 , 2 , 4 , 5 ]
Investigators suspect the two refiners exchanged information on purchase prices, final settlement prices and sales policies for about four years, from February 2022, just before the Russia-Ukraine war, to March 2026, just after the US-Iran war, according to Yonhap. Yonhap and Hankook Ilbo said investigators also suspect the companies explicitly agreed on sales prices twice after the US-Iran war. Oh Haeng-rok, head of the commission's cartel investigation bureau, said the sharp swings in international oil prices during the wars appeared to have been the trigger for the information exchange, Yonhap reported. [ 1 , 2 ]
The domestic gasoline, diesel and kerosene market is structured so that refiners import and process crude oil and supply the products directly or through petrol stations and wholesalers, Yonhap said. As of 2025, SK Energy held 28.1%, Hyundai Oilbank 21.0%, GS Caltex 23.3% and S-OIL 25.5%, roughly 98% in total, and the two companies under scrutiny account for 49.1% combined. Yonhap said no collusion by GS Caltex or S-OIL has been confirmed. [ 1 , 2 , 4 , 5 ]
The examiner estimated related revenue affected by the alleged collusion at about 44.1 trillion won, or about 30 billion won a day, and judged the conduct a serious violation under the Fair Trade Act, proposing corrective measures and a fine, according to Yonhap and Hankook Ilbo. Hankook Ilbo estimated that a fine could exceed 4 trillion won given a cap of 10.5% of related revenue, while Dong-A Ilbo said observers expect a fine in the trillions of won. All reports say the final level will be set after the commission's review. [ 1 , 2 , 4 , 5 ]
Prosecutors separately investigated the price-fixing allegations and indicted the two refiners, Hankook Ilbo reported, adding that the indictment came in July. Yonhap reported that prosecutors alleged employees of the two companies learned of the commission's on-site inspection schedule in advance and deleted computer data and messenger conversations, an allegation of organised destruction of evidence. Oh said he understood an audit office investigation is under way into whether investigation information was managed poorly, and that he understood no information had leaked from inside the commission. [ 1 , 2 ]
Under the procedure, the two companies may submit written opinions and request access to or copies of evidence within eight weeks of receiving the report, Yonhap said. The commission said it plans to hold its meeting and reach a final judgment as quickly as possible once the defence-rights procedure ends. [ 1 ]
Why it matters
The case targets two refiners that together hold about 49% of a market where four companies control roughly 98%, so any penalty and any finding on price information exchange would bear on how fuel prices are set for Korean consumers. It also tests the commission's handling of sensitive investigation information, after Yonhap reported an allegation of deleted evidence and an internal audit. The documents do not say how large a fine will finally be imposed.
Key facts
- The Fair Trade Commission said it submitted an examiner's report to its commission and sent it to SK Energy and Hyundai Oilbank on October 7 over suspected gasoline, diesel and kerosene price collusion, opening a deliberation procedure. [ 1 , 2 , 4 , 5 ]
- Investigators suspect the two refiners exchanged information on purchase prices, final settlement prices and sales policies for about four years, from February 2022, just before the Russia-Ukraine war, to March 2026, just after the US-Iran war. [ 1 , 2 , 5 ]
- Investigators also suspect the two companies explicitly agreed on sales prices twice after the US-Iran war. [ 1 , 2 ]
- The examiner estimated related revenue affected by the alleged collusion at about 44.1 trillion won, or about 30 billion won a day. [ 1 , 2 , 4 , 5 ]
- SK Energy held 28.1% and Hyundai Oilbank 21.0% of the domestic market as of 2025, 49.1% combined, within a four-company oligopoly of about 98%. [ 1 , 2 , 4 , 5 ]
- The examiner judged the alleged conduct a serious violation under the Fair Trade Act and proposed corrective measures and a fine. [ 1 , 2 ]
- Prosecutors have also investigated the price-fixing allegations and indicted the two refiners, according to the reports. [ 1 , 2 ]
- The two companies may submit written opinions and request access to evidence within eight weeks of receiving the report. [ 1 ]
Confirmed by several sources
- The Fair Trade Commission announced on October 7 that it had submitted an examiner's report to its commission and sent it to SK Energy and Hyundai Oilbank over suspected collusion in gasoline, diesel and kerosene prices, opening a deliberation procedure. [ 1 , 2 , 4 , 5 ]
- Investigators suspect the two refiners exchanged sales price information for about four years, from February 2022 to March 2026. [ 1 , 2 , 5 ]
- The examiner estimated related revenue affected by the alleged collusion at about 44.1 trillion won. [ 1 , 2 , 4 , 5 ]
- SK Energy and Hyundai Oilbank together accounted for about 49% of the domestic petroleum product market, within a four-company oligopoly of roughly 98%. [ 1 , 2 , 4 , 5 ]
- The examiner proposed corrective measures and a fine, judging the alleged conduct a serious violation. [ 1 , 2 ]
- Prosecutors have also investigated the price-fixing allegations and indicted the two refiners. [ 1 , 2 ]
Still unclear
- Whether SK Energy and Hyundai Oilbank admit or deny the allegations. The documents do not report any response from either company.
- The size of the final fine. Hankook Ilbo estimated that a fine could exceed 4 trillion won, based on a cap of 10.5% of related revenue, but the documents say the final level will be decided after the commission's review; Yonhap and Dong-A Ilbo only say a fine is proposed or possible.
- The alleged destruction of evidence by employees of the two companies. Only Yonhap reported the allegation, and the commission official said he understood no information had leaked from inside the agency and that an audit office investigation is under way.
What local media are saying
Timeline, local time
- The Fair Trade Commission announces it submitted and sent the examiner's report to SK Energy and Hyundai Oilbank, opening the deliberation procedure (Yonhap, Hankook Ilbo). [ 1 , 2 ]
- Yonhap publishes a combined follow-up report on the case. [ 3 ]
- Seoul Shinmun reports the launch of sanctions proceedings over the 44 trillion won fuel price-fixing case. [ 4 ]
- Dong-A Ilbo reports the sanction procedure and notes observers expect a fine in the trillions of won. [ 5 ]
- About February 2022: the suspected exchange of gasoline, diesel and kerosene price information is alleged to have begun, just before the Russia-Ukraine war. [ 1 , 2 , 5 ]
- About March 2026: the suspected information exchange is alleged to have ended, just after the US-Iran war, with two explicit price agreements alleged after that war. [ 1 , 2 ]