S Korean oil refiners fined nearly 400 mln USD for collusion

 South Korea's major oil refiners were fined 434.8 billion won (399 million U.S. dollars) for collusion, the country's antitrust watchdog said Thursday.

Four leading refiners, including SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank, were ordered to pay a combined 434.8 billion won for colluding to refuse requests by gas stations to change their brands, the Fair Trade Commission (FTC) said in a statement.

The country's gas stations are run under the so-called pole-sign system, which compels them to buy oil products from a single refiner.

The number of gas stations, which purchase refined oil from SK Innovation, reached 4,460, or 34.2 percent of the total 13,045 outlets, as of February. Gas stations with GS Caltex brand came in at 25.9 percent, while Hyundai Oilbank and S-oil had market shares of 18.3 percent and 15.1 percent respectively.

The oil refiners agreed to reject requests from gas stations to change pole-signs to shun fierce competition, which helped them guarantee stable market shares over the past 10 years, according to the FTC.

The antitrust regulator said restricted competition among fuel suppliers led to higher oil product prices. South Korea's consumer prices rose 4.2 percent in April from a year earlier.

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