Fair Trade Commission Investigates Protest Closure Plans by Gas Stations

The Fair Trade Commission has started investigations into attempts at protest closure by gas station owners last year over the sale of fuel substitutes to determine whether they violated fair trade regulations

“We have launched probes to determine whether there was collusion or pressure last year when gas stations attempted to close collectively in protest of the sale of Cenox and other fuel additives,” said Chung Jae-chan, the head of the watchdog’s competition bureau.

On November 20, when Free Flight, the Cenox manufacturer, appeared to be found not guilty of violations of the fuel trade law in Seoul district court, the gas-stations’ business lobby disclosed plans for protest closure and made the following demands: 1) an immediate collection of back taxes from Free Flight; 2) a ban on the sale of other fuel substitutes; and 3) a repeal of traffic tax on gas sale.

The regulator will determine whether the Korea Gas Station Association forced the closure or threatened to revoke members’ association sales licenses as a way to press uncooperative members. If there was no such pressure but if the association premeditated the strike, the commission will discipline the association for collusion.

Ki-Jeong Ko koh@donga.com