In January 2011, former President Lee Myung-bak sparked a stir in the oil industry when he remarked on the disparity between international oil prices and domestic fuel costs, saying, "Fuel prices are strange." His comments led to government inspections of gas stations and intense media scrutiny of oil company profits, igniting public outrage over rising fuel costs.
Fifteen years later, amid soaring international oil prices due to the war in Iran, President Lee Jae-myung convened an emergency cabinet meeting, directing the establishment of a maximum price for gas stations. He expressed strong dissatisfaction, noting, "Prices vary from morning to noon to evening, and some stations have raised prices by nearly 200 won per liter in a single day," pointing to unethical pricing practices by certain gas stations.
According to officials from the Ministry of Trade, Industry and Energy, the price inspections that began at gas stations are now extending to oil companies. Due to the surge in oil prices linked to the Iran conflict, the first-quarter operating profits of major refiners, including SK Innovation, S-Oil, GS Caltex, and HD Hyundai Oilbank, are projected to approach 5 trillion won. Some lawmakers are reportedly preparing to pressure these companies to return their profits.
When international oil prices rise, the selling price of petroleum products made from already secured crude oil increases, leading to a significant short-term boost in operating profits. Notably, over 80% of the operating profits of domestic refiners come from exports, while the margin that refiners earn from domestic gas station sales is only a few dozen won per liter after taxes.
Telecom companies are facing similar scrutiny. The first-quarter results of the three major telecom firms are expected to exceed market expectations. Industry insiders attribute this resilience not to wireless communications but to increased demand for cloud services and data centers, despite subscriber losses due to hacking incidents. The wireless communication sector itself has stagnated due to the government's stringent policies against significant rate hikes. Current telecom companies have found new revenue sources through investments in AI infrastructure rather than extracting profits from consumers.
Nevertheless, whenever the economy falters, the government consistently targets telecom companies. The Lee Myung-bak administration promised a 20% reduction in communication fees, while the Park Geun-hye administration called for "half-price telecom fees." The Moon Jae-in administration sought to eliminate basic fees and increase discount rates, and the Yoon Suk-yeol administration has made expanding low-cost 5G plans a priority. None of these administrations have succeeded in achieving substantial rate reductions. Under the current government, the Ministry of Science and ICT is discussing improvements to telecom plans with the three major companies, which are expected to launch 5G plans priced in the 20,000 won range this year. Industry insiders express skepticism, noting that the government continues to seek solutions to economic stimulation through telecom fees, just as previous administrations did.
By creating villains in the oil and telecom sectors, the government has used them as scapegoats to address public frustration stemming from economic downturns. It is now time to focus on the real issues at hand.
Labor unions in large corporations, which pay salaries exceeding 100 million won, are demanding performance bonuses in the millions of won and have initiated strikes. In contrast, many workers in small and medium-sized enterprises, which make up a significant portion of the labor force, have received notices of wage freezes due to the economic downturn. As large corporations absorb the pressure of rising labor costs by lowering supplier prices, the burden will undoubtedly fall on subcontractors and their employees. Many workers will tighten their budgets, and it will become increasingly common to see neighborhood restaurants changing their signs every few months.
As lunch prices soar above 10,000 won, images of workers demanding performance bonuses of 600 million won make headlines. Today, the government continues to target easy scapegoats while proposing economic stimulus measures. The entities generating billions in operating profits are not the oil companies or telecom firms profiting from cloud services, but rather a troubling structure that mocks the entire population while masquerading as the underprivileged.
* This article has been translated by AI.
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