Top court rules in favor of oil refiner in price-rigging case

By Kim Eun-jung
SEOUL, Feb. 11 (Yonhap) -- The Supreme Court on Thursday acquitted S-Oil Corp.,
South Korea's third largest oil refiner, of charges that it colluded with other
firms to fix oil prices, ending a three-year battle between the refiner and the
nation's antitrust watchdog.

In 2007, the Fair Trade Commission (FTC) fined S-Oil and three other local oil
companies -- SK Energy Co., Hyundai Oilbank Corp., and GS Caltex Corp. -- a
combined 52.6 billion won for colluding to raise oil prices between April and
June in 2004.
S-Oil denied the charges and took the FTC's decision to court. In 2008, a Seoul
high court rejected the FTC's charges, citing the lack of detailed information on
how the companies colluded to fix prices.
On Thursday, the country's highest court upheld the lower court's ruling on the
same grounds. The court also ordered the watchdog to restitute the 7.9 billion
won (US$6.8 million) it collected from the refiner in fines.
With three other companies' cases pending in court, industry watchers expect the
first such ruling on the price collusion could affect the ongoing suits as well
as similar anti-trust cases.
"We hope this provides an opportunity to clear allegations with regard to the
company's fair trade activities," said No Shi-kyung, S-Oil's public relations
director.
In a separate case in December, a South Korean appellate court ordered four local
refiners, including S-Oil, to pay 196 billion won in compensation to the
government for damages caused by their price collusion for military procurement
from 1998-2000.
ejkim@yna.co.kr
(END)

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