HD Hyundai Oilbank, one of South Korea's major domestic refiners, has been indicted along with two company officials in a price-fixing case estimated at 26 trillion won (approximately $17 billion), the Seoul Central District Prosecutors Office announced on Monday, 6 July. The charges stem from alleged collusion to inflate petroleum product prices following the outbreak of the US-Iran war in late February, which triggered sharp surges in global energy costs.

What Prosecutors Allege

According to the prosecution, HD Hyundai Oilbank and fellow refiner SK Energy Co. directly colluded on the timing and scale of petroleum price increases, with that bilateral collusion valued at 14.2 trillion won. Two other major refiners — GS Caltex Corp. and S-Oil Corp. — were accused of mirroring the rigged price hikes, bringing the total market distortion to an estimated 26 trillion won.

Investigators found that the refiners pushed through aggressive price increases despite having stockpiled significant volumes of crude oil before the war began — undermining any claim that the hikes were purely cost-driven.

Why SK Energy Was Not Charged

SK Energy was not indicted, having qualified for a leniency programme. GS Caltex and S-Oil also escaped formal charges, as prosecutors determined their conduct did not constitute a direct violation of fair trade law — though both were implicated in the broader price distortion.

Additional Charges: Unfair Contracts and Evidence Destruction

In a separate but related action, prosecutors indicted all four refining companies on charges of violating the Fair Trade Act by allegedly coercing independent petrol stations into purchasing their products under unfair contractual terms. The companies are accused of filing large-scale damages suits and suspending consumer benefits to block independent stations from sourcing cheaper supplies elsewhere.

Additionally, one employee each from HD Hyundai Oilbank and GS Caltex were indicted on charges of destroying evidence in connection with the Fair Trade Commission's on-site inspection of the refiners in March.

Prosecution's Assessment

'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, signalling that authorities view the conduct as systemic rather than opportunistic.

What Comes Next

The indictments mark a significant escalation in South Korea's scrutiny of its refining sector. Legal proceedings against HD Hyundai Oilbank and the two indicted officials are expected to proceed through the Seoul courts. The case could set a precedent for how energy companies are held accountable for pricing conduct during geopolitical crises — a question with implications well beyond South Korea.