Korea FTC opens sanctions against SK Energy, HD Hyundai Oilbank over fuel price collusion
Version 2: Additional Korean outlets have picked up the case, adding detail on the alleged four-year information exchange and the market shares of the four refiners, but there are no new facts, no change in the regulator's position and no public response from the two companies.
In short
South Korea's Fair Trade Commission said on Oct 7 it submitted an examiner's report alleging SK Energy and HD Hyundai Oilbank exchanged gasoline, diesel and kerosene price information for about four years and agreed on specific supply prices twice in early March 2026, after the US-Iran war broke out. The examiner estimated related revenue at about 44.1 trillion won, a figure that implies a maximum fine of roughly 4.63 trillion won. The report does not bind the commission, which will set the final penalty at a full meeting after the companies submit opinions within eight weeks.
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South Korea's Fair Trade Commission said on Oct 7 that it submitted an examiner's report on alleged gasoline, diesel and kerosene price collusion to its commissioners and sent it to SK Energy and HD Hyundai Oilbank, opening sanction proceedings against the two refiners. The examiners recommended corrective orders and a fine. Chosun Ilbo, Dong-A Ilbo and CBS NoCut News reported that the case covers fuel prices at the wholesale level supplied to petrol stations and distributors. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 ]
According to the examiners, the two companies exchanged information on supply prices, 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. Refiners operate on a post-settlement system under which a provisional supply price is applied when product is delivered and a final settlement price is set early the following month, with the difference settled. The examiners allege that in early March 2026, after the US-Iran war began, the two companies went beyond exchanging information and agreed on specific supply prices twice. Oh Haeng-rok, head of the FTC's cartel investigation bureau, said the examiner “views the war situation, in which international oil prices swung sharply, as a major trigger for the exchange of price information”, adding that “as supply prices to petrol stations changed, consumer prices would also have been affected to some extent”. Economic newspaper Asia Economy and Electronic Times both carried that account. [ 1 , 2 , 6 , 7 , 8 ]
The FTC put related revenue at about 44.1 trillion won, or roughly 30 billion won a day, with most of it arising from the information exchange rather than the two price agreements. Applying the penalty rate of 3% to 10.5% for a serious violation to that revenue gives a possible maximum fine of about 4.63 trillion won; several outlets rounded this to 4.6 trillion won in their headlines. The examiners classified the conduct as a serious violation rather than a very serious one. Oh said the reason was that “this case is basically centred on information exchange rather than price fixing”. The documents state that the actual penalty will be decided by the commission, taking the seriousness of the violation into account. [ 1 , 5 , 6 , 7 , 8 , 9 ]
The domestic gasoline, diesel and kerosene market is an oligopoly: in 2025, SK Energy, HD Hyundai Oilbank, GS Caltex and S-OIL accounted for about 98% of it, with the two companies under scrutiny holding about 49%, Asia Economy reported as 28.1% for SK Energy and 21.0% for HD Hyundai Oilbank. The FTC said that even the combined share of the two was enough to affect the competitive order. GS Caltex and S-OIL were excluded after three on-site inspections and interviews with related people found no evidence of violations by them. [ 1 , 2 , 6 , 8 ]
The companies may submit written opinions and apply to inspect and copy evidence within eight weeks of receiving the report. The FTC said it plans to hold a commission meeting as soon as those procedures end. The report contains the examiners' findings and recommendations and does not bind the commission; the finding of a violation and the level of any sanction will be settled at the full meeting. [ 1 , 6 , 7 , 8 ]
Why it matters
The case targets two of the four refiners that hold about 98% of South Korea's gasoline, diesel and kerosene market, so a finding of violation would test how far the competition regulator can act against a long-standing oligopoly. The examiner's report only opens the process: the commission's full meeting will decide both whether the law was broken and the size of any penalty, which on the disclosed revenue could reach trillions of won. The documents do not say how consumers would be compensated, and neither company has responded publicly.
Key facts
- The Fair Trade Commission said on Oct 7 it submitted an examiner's report on alleged gasoline, diesel and kerosene price collusion to its commissioners and sent it to SK Energy and HD Hyundai Oilbank, opening sanction proceedings. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 ]
- The examiners allege the two companies exchanged information on supply prices, 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 , 4 , 6 , 7 , 8 ]
- The examiners say the two companies went beyond exchanging information and agreed on specific supply prices twice in early March 2026. [ 1 , 6 , 7 , 8 ]
- Related revenue was estimated at about 44.1 trillion won, or roughly 30 billion won a day, most of it from the information exchange rather than the price agreements. [ 1 , 6 , 7 , 8 ]
- Applying the penalty rate for a serious violation, between 3% and 10.5% of related revenue, gives a possible maximum fine of about 4.63 trillion won. [ 1 , 5 , 7 , 9 ]
- In 2025, four refiners — SK Energy, HD Hyundai Oilbank, GS Caltex and S-OIL — held about 98% of the domestic gasoline, diesel and kerosene market; the two companies under scrutiny held about 49%. [ 1 , 2 , 6 , 8 ]
- GS Caltex and S-OIL were excluded from the case after three on-site inspections and interviews with related people found no evidence of violations by them. [ 1 , 6 ]
- The two companies may file written opinions and inspect or copy evidence within eight weeks of receiving the report; the FTC plans to hold a full commission meeting after that to decide the violation and the penalty. [ 1 , 6 , 7 , 8 ]
Confirmed by several sources
- The Fair Trade Commission submitted an examiner's report to its commissioners and sent it to SK Energy and HD Hyundai Oilbank on Oct 7, opening sanction proceedings over alleged fuel price collusion. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 ]
- The alleged conduct covers gasoline, diesel and kerosene and spans roughly four years, from February 2022 to March 2026. [ 1 , 2 , 4 , 6 , 7 , 8 ]
- The examiner alleges the two companies agreed on specific supply prices twice in early March 2026, after the US-Iran war began. [ 1 , 6 , 7 , 8 ]
- The examiner estimated related revenue at about 44.1 trillion won and said a fine of up to roughly 4.6 trillion won is possible. [ 1 , 5 , 7 , 9 ]
- Four refiners held about 98% of the domestic gasoline, diesel and kerosene market in 2025, with the two companies under scrutiny accounting for about 49%. [ 1 , 2 , 6 , 8 ]
- GS Caltex and S-OIL were excluded after the FTC found no evidence of violations by them. [ 1 , 6 ]
- The examiner's report reflects the examiners' opinion and does not bind the commission; the final ruling and penalty are decided at a full commission meeting. [ 7 , 8 ]
- The companies have eight weeks to submit written opinions and may review evidence. [ 1 , 6 , 7 , 8 ]
Still unclear
- The final penalty amount is undetermined. Documents say the maximum possible figure is about 4.63 trillion won under the penalty rate, but that the actual fine will be decided in the commission's review, taking the seriousness of the violation into account; one outlet's headline rounds it to 4.6 trillion won.
- Whether consumer fuel prices were affected. The FTC's cartel investigation bureau chief said supply price changes “would have had some impact” on consumer prices, but Electronic Times reported the FTC could not calculate the concrete impact, and no figure is given.
- How the two companies respond to the allegations. No statement from SK Energy or HD Hyundai Oilbank appears in any document.
- The conflict that preceded the alleged price fixing is named differently. Some documents call it the US-Iran war, others the Middle East war; the documents do not reconcile the naming.
- Whether parties other than the two companies remain under investigation. The FTC found no evidence of violations by GS Caltex and S-OIL and excluded them, but the documents do not say whether the probe into them is closed.
What local media are saying
Timeline, local time
- The Fair Trade Commission announces it has submitted the examiner's report on the alleged fuel price collusion to its commissioners and sent it to SK Energy and HD Hyundai Oilbank; several outlets publish reports at this time. [ 1 , 2 , 3 , 4 , 5 , 6 ]
- Newsis publishes a comprehensive report putting the possible maximum fine at about 4.63 trillion won and noting the report does not bind the commission. [ 7 ]
- CBS NoCut News reports the two companies face commission review, that the related market was worth about 30.8 trillion won last year, and that they have eight weeks to respond. [ 8 ]
- A Newsis article on the case is updated. [ 5 ]
- Kukmin Ilbo publishes a headline on the case citing a possible fine of up to 4.6 trillion won. [ 9 ]