HD Hyundai Oilbank Team Leader Arrested Over Alleged Fuel Price Fixing; Investigation Expands

A team leader at HD Hyundai Oilbank has been arrested on charges of fuel price fixing.

Judge Budong-sik of the Seoul Central District Court issued an arrest warrant for the team leader, identified by his surname Kim, yesterday (June 18) after conducting a pre-arrest interrogation (warrant review), citing concerns that he might destroy evidence.

The court dismissed the arrest warrant for another employee from the same department who underwent the same review, stating that there was insufficient evidence to justify concerns regarding the destruction of evidence or flight risk, given the suspect's position, role, and the current status of the investigation.

Previously, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Na Hee-seok) had requested arrest warrants for both individuals on charges of violating the Monopoly Regulation and Fair Trade Act.

Four major oil refiners—SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank—are suspected of colluding to arbitrarily raise or freeze the prices of fuel and petroleum products distributed domestically through prior consultation.

Prosecutors suspect that the simultaneous surge in domestic fuel prices immediately following the outbreak of the war in Iran was the result of planned collusion among these refiners.

The investigation is also looking into allegations that the refiners engaged in long-term price fixing even before the war in Iran began.

There are also allegations that the refiners abused their dominant market position against independent gas stations, forcing them into supply contracts at higher prices than those offered to company-owned stations, thereby stifling price competition.

The suspicion is that the refiners signed contracts requiring independent gas stations to exclusively supply products from a specific refiner, preventing them from choosing cheaper products from competitors.

Prosecutors have been conducting the investigation since March 23, including raids on the offices of these refiners and the Korea Petroleum Association.

With the arrest of the HD Hyundai Oilbank team leader, the investigation is expected to gain momentum, potentially leading to further attempts to secure the detention of officials from other refiners.

Previously, President Lee Jae-myung emphasized, "We must strictly punish those who attempt to gain unfair profits by exploiting difficult market conditions." He added, "It is necessary to thoroughly crack down on illegal activities such as collusion between refiners and gas stations, hoarding, and cornering, and to impose strict sanctions that are several times the amount of any profits gained from such violations."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.