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U.S. Government Concludes Korea's Low Electricity Rates Are Not a Subsidy
Anti-dumping Duties on Korean Steelmakers Lowered
U.S. Government Concludes Korea's Low Electricity Rates Are Not a Subsidy
  • By Jung Suk-yee
  • March 13, 2020, 10:03
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The U.S. Department of Commerce has lowered anti-dumping duties on Korean steelmakers.

The U.S. government has judged that Korea's low electricity rates do not constitute a subsidy.

The U.S. Department of Commerce calculated anti-dumping duties of up to 2.43 percent in the final decision of the second annual review of Korean-made galvanized steel sheets, said the Ministry of Trade, Industry and Energy on March 12. Galvanized steel sheets are used for electric home appliances, automobile interior and exterior materials, and ventilators.

By company, anti-dumping duties were 0 percent for Hyundai Steel, 2.43 percent for Dongkuk Steel and 2.43 percent for the other companies. In the first final decision in March 2019, the duties were zero percent for Hyundai Steel and 7.33 percent for Dongkuk Steel and other companies.

The Commerce Department also revised down the countervailing duties on Korean steelmakers. The duty on Hyundai Steel was lowered from 0.57 percent in the first decision to 0.44 percent. For Dongbu Steel, the duty fell from 8.47 percent to 7.16 percent. The other companies received a 7.16 percent duty.

The decision was based on the U.S. Department of Commerce's view that Korea's electricity rates cannot be seen as a subsidy for Korean steelmakers. The U.S. Department of Commerce has investigated since July 2019 at the request of U.S. plaintiffs whether KEPCO supported the Korean steel industry with indirect subsidies by purchasing electricity from its power generation subsidiaries and supplying it to Korean steelmakers at lower charges.