South Korean regulators launch investigation into collusion and price manipulation at certain gas stations

South Korea’s antitrust regulator announced on Friday that it is investigating cases of price-fixing by gas stations in the southern region and will impose strict penalties on those profiting from energy price fluctuations caused by the Middle East crisis.

An official from the Korea Fair Trade Commission (FTC) revealed that FTC Chairman Chu Byeong-ki made these remarks at a government special task force meeting held the day before. The task force is responsible for monitoring market prices.

He stated that several gas stations in Busan, North Gyeongsang Province, and Jeju Island are under investigation for suspected price manipulation.

Chu Byeong-ki emphasized that the FTC will take strong action against businesses exploiting the current situation for profit.

Last month, after the US and Israel conducted airstrikes on Iran, fuel prices in South Korea surged. Since then, authorities have been inspecting gas station prices nationwide.

To ease the surge in fuel prices and reduce consumer burden, the South Korean government earlier introduced a fuel price cap system, setting maximum prices for petroleum products supplied by refineries to gas stations and distributors.

The Korea Fair Trade Commission also stated that Chu Byeong-ki pledged to continue efforts to lower everyday food prices to ease public pressure. He cited recent cases where local food producers reduced prices for bread, instant noodles, and snacks.

The regulatory agency had previously penalized some flour and sugar companies for price manipulation.