The Fair Trade Commission (FTC) has begun sanction procedures against seven manufacturers and sellers involved in bid rigging for biofuel supply over the past 11 years.
On July 30, the FTC announced that it submitted a report on the bid rigging activities of the seven biofuel companies to the commission and sent it to the defendants. The report, akin to an indictment, triggers the review process once it is delivered to the defendants.
The companies involved are △DS Danseok △Aekyung Chemical △SK Ecopraim △SK Chemical △Imex Solution △JC Chemical △KG Eco Solution.
FTC investigators believe these companies colluded on biofuel bids and agreed on quantity distribution from December 2013 to February 2025, a period of approximately 11 years and 3 months. The estimated value of the affected bids is around 9.7 trillion won.
In South Korea, biodiesel is purchased through bidding by refiners who are required to blend a certain amount with diesel under the Renewable Fuel Standard (RFS). Similarly, bioheavy oil is procured through bidding by power companies under the Renewable Portfolio Standard (RPS).
The fines are expected to be substantial. An FTC official stated, "Investigators consider this case to be a 'very serious violation.' The maximum fine could be up to 20% of the related sales revenue," adding that penalties for collusion could exceed the 9.7 trillion won in related sales.
It is also estimated that the collusion may have affected diesel prices. The FTC official explained, "Currently, the system mandates a 4% blend of biodiesel with diesel, so it likely had a minor impact on diesel prices."
The companies that received the report are entitled to submit written opinions and access evidence for eight weeks from the date of receipt, ensuring their right to defense. The FTC plans to hold a meeting to finalize the level of sanctions once the defense procedures are completed.
On July 30, the FTC announced that it submitted a report on the bid rigging activities of the seven biofuel companies to the commission and sent it to the defendants. The report, akin to an indictment, triggers the review process once it is delivered to the defendants.
The companies involved are △DS Danseok △Aekyung Chemical △SK Ecopraim △SK Chemical △Imex Solution △JC Chemical △KG Eco Solution.
FTC investigators believe these companies colluded on biofuel bids and agreed on quantity distribution from December 2013 to February 2025, a period of approximately 11 years and 3 months. The estimated value of the affected bids is around 9.7 trillion won.
In South Korea, biodiesel is purchased through bidding by refiners who are required to blend a certain amount with diesel under the Renewable Fuel Standard (RFS). Similarly, bioheavy oil is procured through bidding by power companies under the Renewable Portfolio Standard (RPS).
The fines are expected to be substantial. An FTC official stated, "Investigators consider this case to be a 'very serious violation.' The maximum fine could be up to 20% of the related sales revenue," adding that penalties for collusion could exceed the 9.7 trillion won in related sales.
It is also estimated that the collusion may have affected diesel prices. The FTC official explained, "Currently, the system mandates a 4% blend of biodiesel with diesel, so it likely had a minor impact on diesel prices."
The companies that received the report are entitled to submit written opinions and access evidence for eight weeks from the date of receipt, ensuring their right to defense. The FTC plans to hold a meeting to finalize the level of sanctions once the defense procedures are completed.
* This article has been translated by AI.
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