Prosecutors seek warrants for HD Hyundai Oilbank employees in fuel-price collusion probe

A worker at an HD Hyundai Oilbank gas station in Seoul refuels a vehicle in this undated file photo. Yonhap

Prosecutors are seeking arrest warrants for two employees of HD Hyundai Oilbank as part of an investigation into allegations that the country's four major refiners colluded to manipulate fuel prices, according to legal sources, Monday.

The sources said the Seoul Central District Prosecutors' Office requested the warrants for two employees in the company's pricing division over allegations that the four refiners — SK Energy, GS Caltex, S-Oil and HD Hyundai Oilbank — coordinated in advance to raise or freeze prices of fuel and petroleum products sold in the domestic market.

Prosecutors are expected to expand the investigation to other refiners once a court decides whether to approve the arrest warrants for the HD Hyundai Oilbank employees.

The investigation centers on suspicions that the companies took advantage of heightened tensions in the Middle East to keep fuel prices at inflated levels.

Prosecutors already searched the headquarters of the four refiners and the Korea Petroleum Association in March.

The probe comes after President Lee Jae Myung called for a crackdown on illegal market practices following a spike in domestic fuel prices after a U.S. and Israeli strike against Iran in February.

The strike escalated into a broader war, with the Strait of Hormuz — one of the world's most important energy choke points — emerging as an area of focus before a peace deal was reached between the U.S. and Iran, Sunday.

Lee warned against attempts to exploit the market for excessive profits and called for strict penalties against collusion, hoarding and other unfair practices.

Justice Minister Jung Sung-ho has also described fuel-price collusion as a serious crime that seeks to profit from public hardship and ordered prosecutors to respond firmly.