An interview was held with the representatives from the oil refinery companies, who were fined 190 billion won, the largest ever, by the National Assembly Ethics Committee on Sept. 29 for rigging the bidding process of the military procurement of oil-related products.
As the oil market analysis series of this vernacular, Dong-A Ilbo, had been the whistle blower for this scandal, the interview was requested to hear the refineries¡¯ side of the story.
"There goes my bonus!" a representative from one company said. "One of the companies that merged with another had been fined for the merger and now stands to pay 100 billion won of hard cash, creating an internal scuffle."
A representative from another company said: "Our company has been thinking about abandoning the oil refining industry, as there doesn't seem to be much future in it. The current situation has kick-started us in that direction."
However as the decision to levy fines on the companies proved to be disastrous for certain companies.
"Although some have admitted that a prior discussion and agreement for the bid took place among the companies, the decision by the Ethics Committee ignores the unique nature of the military procurement market," another company¡¯s representative said.
Yet others voiced frustration with the logistics of supplying the military.
"Is it wrong for us to discuss among ourselves the location of the refineries with that of various military facilities needing supply in order to provide the best prices for the oil products?" one questioned.
Another added, "From now, the military should simply establish the pipelines and take the needed oil itself, or it should import the oil."
The oil company representatives went further and threatened, "With things being what they are with so little profit margin, we might as well chuck the whole military market."
Concerning the current investigation of price-fixing by retail suppliers, one stated, "It will not be easy to break through and find any evidence from such a complicated distribution network."
From these responses, any hint of patriotism and responsibility could not be found for being a "national strategic industry" under the umbrella protection of energy security measures.
Could it be that the fine really does not faze them? Or do their responses clearly show that nothing much would change until the monopolistic mentality that had been deeply rooted under 30 years of protection is shattered?
The largest ever fine -- what more could be done?