Prosecutors indict HD Hyundai Oilbank in $17 bil. price-fixing case after US-Iran war outbreak

A gas station in Seoul, June 5 / Yonhap

Prosecutors said Monday they have indicted major domestic refiner HD Hyundai Oilbank Co. and two company officials in a price-fixing case believed to be worth 26 trillion won ($17 billion) following the outbreak of the U.S.-Iran war.

The company is accused of engaging in collusive activities to raise prices of petroleum products after the war triggered sharp rises in global energy prices in late February, according to the Seoul Central District Prosecutors Office.

Two officials from HD Hyundai Oilbank's pricing department have also been indicted in the case.

Prosecutors accused HD Hyundai Oilbank and another refiner SK Energy Co. of direct collusion valued at 14.2 trillion won and two other refiners — GS Caltex Corp. and S-Oil Corp. — of matching the rigged price hikes, undermining market competition by a total of around 26 trillion won.

They did not indict SK Energy under a leniency program. The other two companies also did not face charges as the alleged activities did not fall under fair trade law violations.

Their investigation found that HD Hyundai Oilbank and SK Energy colluded on the timing and scale of price increases for petroleum products after the outbreak of the war.

GS Caltex and S-Oil, which determine price levels based on those of HD Hyundai Oilbank and SK Energy in the domestic market, followed the price hikes, resulting in the overall price increases in the country, according to the prosecution.

Prosecutors believe that the refiners imposed aggressive price hikes despite having stockpiled considerable amounts of crude oil when the war began.

"The collusion that came immediately after the war was not a temporary deviation but chronic collusive practices being made in an international crisis situation," the prosecution said.