South Korean Watchdog Opens Price-Rigging Review of Two Oil Refiners

South Korea’s antitrust regulator has begun formal deliberations over allegations that two major domestic oil refiners exchanged sensitive sales information and coordinated fuel prices during a period of severe energy-market volatility.

The Fair Trade Commission said its examiners recommended fines and corrective orders against SK Energy and HD Hyundai Oilbank. The allegations cover gasoline, diesel and kerosene, putting scrutiny on products that directly affect household transport costs and a wide range of business expenses.

According to the examiners’ report, the two companies exchanged information about their sales policies from shortly before Russia’s invasion of Ukraine in February 2022 until March 2026. Investigators allege that the refiners rigged prices following the emergence of the Middle East crisis and that the information sharing restricted competition in violation of South Korea’s Monopoly Regulation and Fair Trade Act.

The sales linked to the alleged conduct were estimated at 44.1 trillion won, or about $33.2 billion. That was equivalent to roughly 30 billion won in sales per day over the period assessed by investigators. The scale makes the case a significant test of antitrust oversight in a highly concentrated industry.

SK Energy and HD Hyundai Oilbank together represented nearly half of South Korea’s market for producing and selling gasoline, diesel and kerosene in 2025. SK Energy held a 28.1 percent share and HD Hyundai Oilbank accounted for 21 percent. The country’s four refiners — the two companies under review, GS Caltex and S-Oil — controlled 98 percent of the market.

An FTC official said investigators believe the information exchanges began amid energy-price volatility caused by international conflicts. The official also pointed to the two companies’ combined market position and their ability to influence competition.

The examiners’ recommendations do not amount to a final ruling. The commission will reach a decision only after considering the companies’ defenses. The refiners have eight weeks to submit written responses.

SK Energy said it was closely reviewing the report and would present a fact-based explanation during the deliberations. No final penalty has been imposed, and the allegations remain subject to the commission’s review.

The outcome could clarify how South Korean competition law applies when large refiners exchange market information during periods of unusual price volatility. It may also have broader implications for compliance practices across the energy sector, where a small number of suppliers dominate fuel production and sales.