SK Energy and Hyundai Oilbank have been brought before antitrust authorities for allegedly colluding on the prices of gasoline, diesel, and kerosene, taking advantage of rising international oil prices due to the war. The related sales amount to approximately 44.1 trillion won, which could result in fines of up to 4.6 trillion won.
On October 7, the Fair Trade Commission (FTC) announced that it submitted a report on the collusion case involving SK Energy and Hyundai Oilbank to the commission and sent it to the accused parties. This marks the beginning of the formal review process, as the report includes findings of illegal activities and recommendations for sanctions.
The FTC found that the two companies exchanged sensitive pricing information, including deposit prices and confirmed prices, from February 2022, just before the Russia-Ukraine war, until early March of this year, shortly after the U.S.-Iran conflict began.
Deposit prices are provisional prices applied by refiners when supplying products to gas stations, with final prices determined at the beginning of the following month. The FTC concluded that the companies continuously shared sensitive pricing information relevant to their trading partners.
In March of this year, following the outbreak of the Middle East war, the companies allegedly went beyond mere information exchange and agreed on specific deposit prices on two occasions. Oh Haeng-rok, head of the FTC's cartel investigation division, stated, "From 2022 to early this year, the companies exchanged pricing information, but no specific agreement on how much to raise prices was confirmed. However, in early March, agreements on specific prices were established on two occasions."
The FTC identified related sales of approximately 44.1 trillion won, primarily generated from the four-year information exchange, while direct sales related to the price collusion are believed to be relatively small, limited to the two agreements in March.
The investigators deemed the actions of both companies as serious violations of the Fair Trade Act concerning price collusion and information exchange, recommending corrective measures and fines. Since the violations ended in March, the revised fine guidelines apply, which could result in fines of less than 10.5%. Preliminary calculations suggest fines could reach approximately 4.6305 trillion won, nearing the 4.6 trillion won mark.
However, the actual fine rates, related sales ranges, and any aggravating or mitigating factors will be finalized during the commission's review process. Oh added, "The commission will consider the severity of the violations and other factors in determining the fines, so it is difficult to specify an exact amount at this time."
SK Energy and Hyundai Oilbank held a combined market share of about 49% last year. The domestic gasoline, diesel, and kerosene market is dominated by four companies: SK Energy, Hyundai Oilbank, GS Caltex, and S-OIL, which together account for 98% of the market.
Oh noted that investigations and witness statements regarding GS Caltex and S-OIL were conducted, but no evidence of legal violations was found. He stated, "The 49% market share of SK Energy and Hyundai Oilbank is not insignificant and could significantly impact market competition."
The accused parties can submit written opinions and request access to evidence within eight weeks of receiving the report. The FTC plans to hold a meeting to determine the legality of the violations and the final level of sanctions once the defense rights process is completed.
In response, SK Energy stated, "We are closely reviewing the contents of the FTC's report and will sincerely participate in the review process, fully clarifying the facts and the company's position."
* This article has been translated by AI.
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