Korea tightens steel import rules to curb antidumping loopholes

Korea Herald

19-03-2025

Seoul follows Trump administration in cracking down on steel manufactured in China rerouted through third countries
South Korea is tightening its grip on imported steel to curb the circumvention of antidumping duties, as part of broader efforts to shore up its embattled steel industry, beset by an influx of cheaper steel manufactured in China and mounting US trade barriers.
At a ministerial meeting Wednesday, presided over by acting President Choi Sang-mok, the Ministry of Trade, Industry and Energy outlined measures to strengthen origin verification for imported steel. The plan seeks to crack down on foreign producers dodging antidumping tariffs by rerouting steel products through third countries before entering Korea.
The initiative is one of the measures aimed at mitigating trade risks in the steel and aluminum industries and curbing unfair imports, the ministry said. Other priorities include tackling trade disputes, assisting businesses in navigating crises and fostering the steel sector's development.
Steel importers will now be required to submit a mill test certificate, which provides detailed material specifications and origin information, enabling more precise tracking of imported steel back to the crude steel production stage.
According to the ministry, stricter oversight is expected to bolster responses to low-quality steel imports that pose safety concerns, as well as unfairly traded steel products.
The government will also make amendments to customs regulations while granting trade officials greater authority to launch investigations into suspected circumvention cases and streamline anti-dumping procedures.
Even though the Korea Trade Commission established a legal framework in January to prevent the circumvention of antidumping duties, the government now seeks to expand this definition to include circumvention through 'third countries," not just the 'supplying country,' addressing lingering concerns over enforcement gaps.
This move closely follows the actions of the Trump administration in the US to monitor shipments of steel originating from China and rerouted through Vietnam or Thailand to evade tariffs.
In February, the KTC proposed antidumping duties of up to 38 percent on thick plates manufactured in China after determining they posed a potential threat to domestic producers.
China has sharply increased heavy plate steel exports to South Korea at 10 to 30 percent lower prices, with imports nearly tripling from 446,000 metric tons in 2021 to 1.38 million tons last year, according to the Korea Iron and Steel Association.
The government has been adhering strictly to established procedures and standards in its ongoing antidumping investigation into imported hot-rolled steel sheets and heavy steel plates from China.
Beyond tackling circumvention, the government plans to intensify enforcement against imported steel misrepresented as Korean-made before being resold or re-exported. The Korea Customs Service will deploy a dedicated task force to conduct rigorous inspections through April, increasing monitoring frequency from twice to four times per year.
Amid rising global trade tensions, the government further aims to mitigate trade friction caused by major economies tightening their trade barriers, including US tariffs on steel and aluminum, the European Union's planned carbon levies under the Carbon Border Adjustment Mechanism and India's ongoing safeguard investigation into steel imports.
In parallel with its trade defense measures, the ministry will devise practical solutions to sustain the competitiveness of local steelmakers, while its task force under the industry ministry continues to develop a comprehensive mid-to-long-term strategy for the steel sector.
'With close cooperation among government agencies, we aim to swiftly implement these measures, not only to block circumvention dumping but also to proactively address trade challenges,' a ministry official said.