[Exclusive] Prosecution Requests Arrest Warrants for Two HD Hyundai Oilbank Executives... "Planned Collusion Amid Iran War"

'Oil Price Collusion' Amid Middle East Conflict
Concrete Evidence of Planned Price-Fixing Secured
First Arrest Warrants Requested After Raids on Four Refiners

The prosecution investigating suspicions of price-fixing among the four major domestic oil refiners has requested arrest warrants for two executives from the price-setting department at HD Hyundai Oilbank. This is the first move to secure suspects after securing concrete evidence of a "planned collusion" in which the companies allegedly took advantage of Middle East-driven crises such as the Iran war to artificially inflate oil prices.

Yonhap News

According to reporting by The Asia Business Daily on June 15, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor Na Heesuk, recently filed for arrest warrants for two executives at HD Hyundai Oilbank. Since conducting search and seizures at the four major refiners—SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank—as well as the Korea Petroleum Association on March 23, prosecutors have carried out an intensive investigation, additionally securing the mobile phones of dozens of individuals with a high likelihood of involvement in legal violations.

During this process, the prosecution thoroughly screened the overall price-setting structure of the oil refiners and concluded that the recent surge in oil prices was not driven solely by market forces, but rather constituted an "oil price manipulation crime." Because surging domestic oil prices due to international instability directly translate into higher living costs, the authorities' swift move to arrest key figures with a high degree of involvement in the alleged collusion is seen as an effort to root out illegal activities in the market.

The prosecution's rapid investigation is also in line with the government's policy of "strict response." On March 5, President Lee Jaemyung stated at a temporary Cabinet meeting, "We must respond firmly to attempts at hoarding or making unreasonable excessive profits." The following day, he posted on X (formerly Twitter), "Price-fixing and manipulation is a serious crime against the public," adding, "You will soon realize just how severe the consequences are." On the same day, Minister of Justice Jeong Seongho also defined oil price collusion as a "serious anti-social crime" and instructed the Supreme Prosecutors' Office to respond strictly.

The domestic petroleum market is dominated by four major oil refiners, resulting in a structure with limited price competition. Once the court decides whether to detain the HD Hyundai Oilbank executives, the prosecution is expected to expand its investigation to the other refiners to prove the reality of unfair practices within this entrenched oligopolistic system.

This content was produced with the assistance of AI translation services.