The Korea Fair Trade Commission said on the 6th it will impose a total penalty surcharge of 2.05 billion won on the Jeju Gas Station Association, Jeju Nonghyup, and Seogwipo Nonghyup for prearranging prices for petroleum products (gasoline, diesel, and kerosene).
According to the Korea Fair Trade Commission (FTC), from Oct. 14, 2022, to July 10, 2024, Jeju Nonghyup and Seogwipo Nonghyup provided the next day's petroleum sales prices in advance to the Jeju Gas Station Association before disclosing them on Opinet. The Jeju Gas Station Association notified its members and had them comply.
In addition, Jeju Nonghyup and Seogwipo Nonghyup agreed with the Jeju Gas Station Association to set petroleum prices, including price hikes, and encouraged adherence to a reference price by identifying businesses that sold below the reference price and reporting them to the Jeju Gas Station Association.
The Korea Fair Trade Commission (FTC) viewed their conduct as violating Article 51(1)1 of the Monopoly Regulation and Fair Trade Act (prohibited acts of business associations). The law stipulates that business associations must not determine or restrict their members' prices, transaction terms, production volumes, and the like.
Accordingly, the Korea Fair Trade Commission (FTC) imposed a penalty surcharge of 30 million won on the Jeju Gas Station Association, and 987 million won and 1.033 billion won on Jeju Nonghyup and Seogwipo Nonghyup, respectively.