The Fair Trade Commission (FTC) of South Korea has launched an on-site investigation into allegations of price collusion among four major oil refining companies—SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank—amid a significant increase in domestic oil prices. This move comes in the context of rising international oil prices influenced by geopolitical tensions, including the conflict between the United States, Israel, and Iran, which have led to heightened crude oil prices. The FTC is scrutinizing whether these companies have engaged in collusive practices to exploit the situation for profit.

Typically, it takes about two to three weeks for changes in international oil prices to be reflected in domestic markets; however, the South Korean government has expressed concerns that local prices surged excessively shortly after the international prices increased. This has fueled suspicions that the oil refiners may have preemptively raised prices to maximize their profits, prompting the FTC to act. On September 6, following a dire assessment from President Lee Jae-myung regarding the spike in gasoline prices at service stations, the FTC mobilized its local offices to focus on monitoring gas stations and investigating the viability of collusion.

The issue of rising fuel prices has become a critical talking point within the government, as President Lee has noted that while there are no significant disruptions in fuel supply, some service stations have reported price hikes of nearly 200 won per liter. The government is actively seeking to address this situation, emphasizing that mechanisms to regulate and monitor fuel pricing need to be improved to prevent such collusive behaviors in the future. The outcome of this investigation may have significant implications for the oil market and overall consumer prices in South Korea.