South Korea refiners face $442 million fine over cartel

SEOUL: South Korea's anti-monopoly watchdog said Thursday it would fine four major oil refiners a total of 434.8 billion ($442.7 million) for operating a cartel to protect their market positions.

The Fair Trade Commission said SK Innovation, GS Caltex, Hyundai Oilbank and S-Oil colluded to restrict competition for new gas stations.

The cartel helped the refiners maintain market share without engaging in competition, it said.

The watchdog said SK, the country's largest refiner, should pay 138 billion won in fines while GS Caltex, Hyundai Oilbank and S-Oil would be fined 177.2 billion won, 74.4 billion and 45.2 billion respectively.

It also said it would file a complaint with prosecutors against SK, GS Caltex and Hyundai Oilbank for their anti-trust activities.

South Korea, Asia's fourth largest economy, relies entirely on imports for its oil needs. It was the world's fifth-largest importer last year when it brought in 872 million barrels of crude.

The government has launched a drive to contain high oil prices, but refiners have resisted pressure for price cuts.

SK Innovation denied it was part of a cartel and said it was considering its response. Hyundai Oilbank also denied it helped operate a cartel and said it would review all legal measures against the decision.

Copyright AFP (Agence France-Presse), 2011