Prosecutors launched a compulsory investigation on the 20th over allegations of price-fixing by some biodiesel and bio–heavy oil producers.
The Seoul Western District Prosecutors' Office Criminal Division 5 (chief prosecutor Kim Jin-hyeok) said it has been conducting searches and seizures since the morning of the day on member corporations of the Bio Energy Association and related companies on suspicion of violating the Monopoly Regulation and Fair Trade Act.
Five corporations are members of the Bio Energy Association: Emac Solution, SK Ecoprime, Aekyung Chemical, JC Chemical, and DS Dansuk.
Prosecutors are said to be investigating based on a tip that these companies colluded during bidding processes for biodiesel and other products.
Under the renewable portfolio standard (RPS) introduced by the government to expand renewable energy, large power generators must produce 25% of their total power output from renewable energy. Accordingly, power generators have been purchasing bio–heavy oil, classified as renewable energy, through bidding.
Prosecutors believe bioenergy companies have posted about 10 trillion won in revenue over the past 10 years. They plan to examine the scale of unjust gains generated through collusion.
In Mar. last year, the Korea Fair Trade Commission sent investigators to bioenergy producers and conducted an on-site probe into the price-fixing allegations.