South Korean prosecutors have indicted four major domestic oil refiners—HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil—on charges of violating fair trade laws by allegedly colluding to increase domestic fuel prices in the aftermath of the Middle East conflict [1]. According to Yonhap News Agency, prosecutors allege that HD Hyundai Oilbank and SK Energy colluded on 14.2 trillion won ($9.2 billion) worth of oil sales, while GS Caltex and S-Oil are accused of mimicking those price hikes, bringing the total anticompetitive impact to approximately 26 trillion won [1].
The investigation was launched after a sharp rise in domestic oil prices following the U.S.–Iran conflict, with prosecutors identifying collusion among pricing executives at two of the companies as the main factor behind the timing and scale of the price increases [1]. Prosecutors described the collusion as a long-standing, systemic practice that became evident during the global crisis [1].
In March, South Korean President Lee Jae Myung issued a warning on X, stating that oil refiners and corporations involved in price-fixing would be held accountable and promising to use all legal measures against unethical business practices [1].
Despite the indictments, shares of the oil refiners and their parent companies rose: S-Oil gained 6.08%, SK Innovation (parent of SK Energy) advanced 1.58%, HD Hyundai rose 1.21%, and GS Holdings (which co-controls GS Caltex with Chevron) increased by 6.99% [1]. S-Oil declined to comment, and the other companies could not be immediately reached for comment [1].
CONCLUSION
The indictment of South Korea's four major oil refiners for alleged price collusion marks a significant regulatory intervention in the country's energy sector. Despite the legal action, investor sentiment remained positive, as reflected in the share price gains of the implicated companies. The market appears to be weighing the long-term impact of the charges against the immediate financial performance of the refiners.