Korean Export Reaches to ‘Deadlock’

An export on main products of Korea has reached to a deadlock. It has a variety of substances ranging from the anti-dumping tariff and Safeguard to Countervailing Duty on ‘environment technology barrier and ‘government subsidy’.

As the China determined the Safeguard for Korean steel products on November 1, the Safeguard has been put in action thirdly after the US and EU.

China investigated 17 items and took measures only for 5 items including the hot rolled steel and cold rolled steel. It accepted a quota by country, but the major exporting products to China are mostly included. As the US established the tariff of 8∼30% for 14 items in March and the quantity quota system and EU took the safeguard for 7 items in October, it took such measures competitively.

The US will pass the final judgment on the dumping margin for the Korean cold rolled steel apart from the safeguard. It is forecasted that the department of Commerce of US will reduce the dumping margin rate of 5∼11%. So, the additional tariff is likely to be levied.

China levied a temporary anti-dumping tariff of 4~48% on Korean Polyester Staple Fiber on the 22nd of last month and then levied the provisional anti-dumping tariff on Polyester chip on October 29. In July, the Japan levied the anti-dumping tariff on the Korean PSF.

EU instituted a lawsuit to WTO reported that the Korean financial institutions supported the corporate restructuring process of the Korean shipbuilding companies through debt & equity conversion by the government’s subsidy. However, the Korean government will institute to the court against the EU and so ‘the shipbuilding dispute’ is in progress.

As the EU plans to execute ‘a disused car handling guide’ from next July, the Ministry of Commerce, Industry and Energy(MOCIE) and motorcar industry have worked hard to prepare countermeasures as the representative ‘environment trade barriers’.

A guide prescribes that any heavy metal such as lead, cadmium and mercury must not be found in vehicles including the nine passenger car and below 3.5t truck.

According to the Ministry of Commerce, Industry and Energy(MOCIE), as of the end of October, there are 127 accumulative cases on the export restriction on Korean products, increased over 109 cases in 2000 and 120 cases in 2001.

Owing to an instituting of Infineon, Germany, EU will execute the due diligence within the month at least. The department of commerce of US is highly likely to make the investigation decision by the instituting of Micron.

Ja-Ryong Koo bonhong@donga.com