Four South Korean refiners apologize at National Assembly audit
South Korea’s top four refining companies faced intense bipartisan scrutiny during an October 12, 2026 National Assembly Political Affairs Committee audit, where executives apologized for rising fuel costs during international conflicts while addressing pending price-fixing investigations, yonhapnewstv.co.kr reported. SKenergy, HD Hyundai Oilbank, GS Caltex, and S-OIL answered questions regarding petroleum price structures, government loss-reimbursement programs, and alleged collusion involving tens of trillions of won in petroleum product sales.
Parliamentary Scrutiny and Allegations of War Profiteering
Lawmakers accused the refiners of treating geopolitical turmoil as a profit-making opportunity while domestic consumers struggled with high living costs. Democratic Party lawmaker Min Byung-duk criticized the industry during the audit by stating that while the nation faced economic crisis, the four major refiners used war as a chance to make money, pointing out that retail prices rise quickly when crude goes up but fall sluggishly when it drops. Min also targeted structural supply issues, noting that exclusive purchasing contracts prevent retail stations from buying cheaper fuel elsewhere while retroactive settlement systems leave station operators selling fuel without knowing its actual cost.
Ruling party representative Park Joon-tae pursued the executives over the scale of the alleged price-fixing scheme. Public officials and investigators estimate the affected sales volume at roughly 44 trillion won, covering gasoline, diesel, and kerosene transactions. Park questioned whether such massive financial impacts could happen without executive oversight, arguing that the decisions must have involved deliberate management intent to secure unfair gains.
Executives on the hot seat issued formal apologies regarding public financial strain. Song Myung-jun, CEO of HD Hyundai Oilbank, told the committee that he feels regret over the financial burdens citizens experienced during the period of surging crude prices. Kim Jong-hwa, CEO of SK energy, acknowledged criticisms surrounding exclusive supply agreements and stated that management would work to address and fix those structural problems. S-OIL Domestic Sales Head Leegeon-myung also expressed regret over the heavy economic pressure placed on the public following the Strait of Hormuz disruptions.
Fair Trade Commission Probes Oil Companies for Price Collusion
The regulatory pressure extends beyond general market complaints into formal legal actions by antitrust authorities. The Fair Trade Commission dispatched a review report to SK energy and HD Hyundai Oilbank on October 7, initiating formal deliberation procedures over alleged sales price collusion spanning from February 2022 through March 2024, according to electimes.com. Prosecutors have also pursued separate criminal investigations into the same companies.
A major point of contention during the audit involved how these allegedly manipulated prices intersect with government support programs. People Power Party representative Park Sung-hoon raised concerns that if information sharing and price-hiking agreements distorted fuel rates, those same inflated figures might have bled into government calculations for petroleum maximum-price system loss subsidies. Park pressed executives on whether they would refund any overpayments funded by taxpayer money if the collusion charges are finalized. news.einfomax.co.kr noted that SK energy’s Kim Jong-hwa responded by stating the company has submitted necessary settlement data while ongoing discussions continue, noting that the firm will cooperate fully with the Fair Trade Commission review process to provide proper explanations.
Fair Trade Commission Chairperson Joo Byung-ki addressed the subsidy overlap concern directly during the proceedings. Joo informed lawmakers that antitrust regulators will actively consult with the Ministry of Trade, Industry and Energy to ensure that unwarranted financial benefits do not materialize through state reimbursements.
Refining Executives Await Regulatory Reviews and Update Contracts
Refining executives emphasized their commitment to administrative procedures while maintaining caution regarding pending legal outcomes. GS Caltex M&M Division Head Kim Chang-su noted that necessary improvements to retail transactions are currently underway using standard agency contract templates issued by antitrust regulators, with plans to execute them promptly.
When pressed about whether corporate leadership directed any collusive pricing strategies, SK energy’s Kim Jong-hwa reiterated that the organization awaits the final outcomes of the state regulatory review before taking further administrative steps. HD Hyundai Oilbank’s Song Myung-jun echoed those sentiments, telling lawmakers that the company intends to handle the ongoing proceedings transparently while cooperating with official inquiries.