Legal probes push Korea refiners to split over oil cap compensation strategy
As the process to calculate the losses the refining industry incurred after the government implemented the “oil price cap” is underway, the mood among refiners is subtly diverging. Initially, the refining industry spoke with one voice, saying the losses from the government’s control of oil product prices far exceed the government’s estimates. However, after prosecutors ...
Korea's refining industry faces a split in opinion over how to handle compensation for losses incurred due to the government's oil price cap. Initially, all refineries advocated for a higher compensation amount, arguing that losses far exceed the government's estimates. However, recent legal issues have shifted company perspectives.
Prosecutors have accused two major refiners, HD Hyundai Oilbank and SK Energy, of price collusion, while the Korea Fair Trade Commission is investigating potential violations of the Monopoly Regulation and Fair Trade Act. The government's response to these legal pressures has caused a shift in company attitudes, with some accepting early settlement to minimize risk, while others push for more compensation through post-settlement appeals.
The government has set aside 4.2 trillion won in reserve funds for compensation and plans to make the first payment in November-December.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
