Seoul Central District Prosecutors' Office indicted HD Hyundai Oilbank and two pricing department employees for violating fair trade laws through coordinated gasoline price increases with SK Energy, following collusion that began in July 2024. The indictment stems from prosecutors' findings that the companies exchanged pricing information to simultaneously raise fuel costs after the US-Iran war, generating a combined market impact of 26 trillion won across all domestic refineries. SK Energy avoided prosecution through South Korea's leniency program for self-reporting, while GS Caltex and S-Oil were excluded due to insufficient direct evidence of price coordination. Prosecutors characterized the case as the largest single collusion incident by financial scale in South Korean history, noting that domestic refineries had substantial crude oil reserves at the time of the war outbreak and lacked justification for sharp price hikes. The indictment follows a multi-year investigation into fuel pricing practices during a period when Seoul's average gasoline price exceeded 1,800 won per liter on March 4 2026.
HD Hyundai Oilbank and SK Energy Coordinated 14.2 Trillion Won Price Collusion from July 2024
According to the Seoul legal community on the 6th, prosecutors charged HD Hyundai Oilbank with exchanging pricing information with other companies to raise fuel prices simultaneously. The direct collusion between HD Hyundai Oilbank and SK Energy totaled 14.2 trillion won in scale. Due to the price-following characteristics of South Korea's oil refining market, the total ripple effect across the entire market reached 26 trillion won when GS Caltex and S-Oil referenced and followed the pricing decisions of the indicted companies. Prosecutors defined this as the largest single collusion case by scale in history.
![HD Hyundai Oilbank]()
HD Hyundai Oilbank [Source: Yonhap News file photo]
Prosecutors determined that domestic oil refineries had considerable crude oil reserves at the time of the war outbreak and had no reason to cause price spikes. The collusion activities of the companies began in July 2024, before the war.
Internal Messages Revealed Executives Celebrating War Profiteering on March 4 2026
Internal investigators were found to have exchanged messages via messenger on March 4 2026, when Seoul's average gasoline price broke through 1,800 won per liter, with statements including "We're raising the price by 100 won more today. We're making 2 trillion this year" and "As expected, a company that lives off war. Long live Trump," celebrating their excessive profits. These conversations were uncovered during the investigation.
Four Refineries Indicted for Forcing 98% Exclusive Purchase Contracts on Independent Gas Stations
Behind the maintained profiteering system were unfair distribution practices targeting independent gas stations. Prosecutors brought all four oil refineries to trial on charges of preventing product comparison and purchase while forcing "full purchase contracts" and "post-settlement systems." The contract ratio averaged 98%. Internal messenger communications confirmed statements such as "I think we need to give them a hard time through lawsuits" and "The moment they leave, they'll be destroyed by damages."
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Gas station scene in Seoul [Source: Yonhap News file photo]
HD Hyundai Oilbank and GS Caltex Employees Charged with Systematic Evidence Destruction
Additional misconduct was also detected. Executives and employees of HD Hyundai Oilbank and GS Caltex are accused of evidence destruction for identifying the Fair Trade Commission's on-site investigation schedule in advance and systematically deleting related computer data. Three oil refineries also falsely reported daily gasoline sales prices to the Ministry of Trade, Industry and Energy at levels lower than actual prices. Prosecutors stated they will share related materials with the Ministry of Trade, Industry and Energy in the future and do their best to maintain the prosecution.
FAQ
What charges did HD Hyundai Oilbank face in the price-fixing case?
HD Hyundai Oilbank and two pricing department employees were indicted for violating fair trade laws through coordinated price increases with SK Energy. The direct collusion between the two companies totaled 14.2 trillion won, with a total market impact of 26 trillion won when other refineries followed their pricing decisions.
Why did prosecutors say the oil refineries had no justification for raising prices?
Prosecutors determined that domestic oil refineries had considerable crude oil reserves at the time of the US-Iran war outbreak and had no reason to cause price spikes. Internal messages on March 4 2026 showed executives celebrating war profiteering with statements like "We're making 2 trillion this year" and "As expected, a company that lives off war."
What unfair distribution practices were the refineries charged with?
Prosecutors brought all four oil refineries to trial for preventing product comparison and purchase while forcing "full purchase contracts" and "post-settlement systems" on independent gas stations. The contract ratio averaged 98%, with internal messages confirming threats of lawsuits and damages against station owners who attempted to leave.
