Jeju Region LPG Refueling Operators Collude... Fair Trade Commission 'Prosecutor Referral'

Four LPG refilling companies (Cheonma, Jeju BK, Jeju Mirae Energy, and Halla Energy) dominating the LPG propane supply market in Jeju Island have been issued corrective orders and fined 2.5589 billion KRW by the Fair Trade Commission for colluding to raise sales prices.

These companies supply LPG propane to about 140 sales outlets in Jeju Island and have effectively divided the market among themselves. The Fair Trade Commission decided to refer Cheonma and Jeju BK, who led the collusion, to the prosecution.

According to the Fair Trade Commission on the 3rd, the four companies decided to stop price competition and raise LPG sales prices starting from August 2020 to respond to business threats caused by the expansion of LNG (liquefied natural gas) supply in Jeju Island. Until then, unlike other regions, Jeju’s LNG supply pipeline network was not sufficiently developed, so LPG was the main fuel used. However, with the start of LNG supply to about 27,000 households in Jeju at the end of March 2020, its share was increasing.

Faced with this situation, the four companies agreed in October 2020 to gradually raise LPG sales prices. Subsequently, from November to December 2020, they raised LPG supply prices for their respective sales outlets. They also agreed not to poach each other’s clients in contracts with large LPG consumers such as industrial companies and shared information and sales prices. It was also confirmed that they deliberately submitted higher price quotes to competitors’ clients or participated as a front.

The Fair Trade Commission imposed corrective orders (cease and desist orders) and a fine of 2.589 billion KRW on the four companies for their unfair joint actions and decided to take prosecutorial action against Cheonma and Jeju BK, who led the collusion in this case.

The Fair Trade Commission stated, “We have taken strict measures against unfair joint actions that caused LPG propane price increases used for cooking and heating,” and added, “We will continue to strengthen monitoring and strictly respond to collusion in sectors affecting people’s livelihoods.”

This content was produced with the assistance of AI translation services.