Koo Yun-cheol Vows Tough Response to Gasoline Price Collusion, Considers Setting Price Ceiling

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[Financial News] The government has announced that it is considering setting a price ceiling on gasoline and diesel in response to sharp price increases driven by instability in the Middle East. Authorities appear to be acting preemptively after prices at some gas stations surged even before higher international oil prices were fully reflected in the domestic market.
At the 8th extraordinary Cabinet meeting on the 5th, Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance (MOEF), reported to President Lee Jae-myung of South Korea, saying, "We are seeing phenomena such as excessive increases in gasoline prices recently." He added, "Through intensive inspections, we will respond sternly to any collusion or unfair practices related to key consumer price control items."
He went on to say, "Under Article 23 of the Petroleum and Alternative Fuel Business Act, we can designate a maximum price when prices surge." He reported, "We will review prices this afternoon, and if they are excessively high, we will even consider designating a price ceiling through an official notice."
An investigation into possible collusion will proceed in parallel. Koo explained, "The Korea Fair Trade Commission (KFTC) will investigate whether collusion has occurred," adding, "If gas stations with high prices are found to have engaged in collusion, we can order price readjustments."
He also signaled a hard-line response to hoarding and cornering the market. "Under the Price Stabilization Act, if hoarding or cornering occurs, we can impose corrective measures or even criminal penalties," he said, stressing, "The government will mobilize every administrative tool at its disposal."
In response, President Lee Jae-myung said, "The public has shown a high level of civic awareness without panic buying, and we must respond firmly to any attempts to profit from the current uncertainty."
Addressing concerns that a collusion probe could take time, Joo Byung-ki, chair of the Korea Fair Trade Commission (KFTC), said, "We are operating our regional offices nationwide to monitor prices, and we will swiftly launch investigations, focusing on areas where prices have risen sharply." He added, "Because gas stations are relatively small-scale businesses, we can conduct investigations quickly."
The government also announced that it will carry out unannounced on-site inspections at gas stations and take strict administrative action against practices such as short-selling on quantity or selling fake fuel. Later this afternoon, it plans to convene a meeting of relevant ministers to review trends in petroleum product prices and discuss specific stabilization measures.
hippo@fnnews.com Reporter Kim Chan-mi Reporter