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Korea Herald
25-03-2025
- Business
- Korea Herald
Export industries call for measures to prevent potential fallout from US reciprocal tariffs
South Korean export industries called for government efforts to minimize the impact of the United States' reciprocal tariffs to be announced next week and measures to protect the domestic market from unfair trade activities, the industry ministry said Tuesday. Officials from major export companies in the automotive, steel, solar power, home appliances and other industries made the call in a meeting with Trade Minister Cheong In-kyo, according to the Ministry of Trade, Industry and Energy. The meeting was held to discuss South Korea's response strategy ahead of the plan by US President Donald Trump's administration to announce country-by-country reciprocal tariffs April 2. In the meeting, the business leaders asked the government to engage in "active" negotiations with the US administration to minimize the upcoming reciprocal tariffs' impact on Seoul's exports. They also called for measures to protect the domestic industries from an expected increase of unfairly cheap products flowing into the Korean market due to hefty US duties. "Through ministerial-level meetings, the government has been delivering our concerns to the US administration and plans to continue negotiating with Washington to protect the interests of our companies," Cheong said. He also said the government will "sternly" respond to unfair trade attempts of foreign countries by strengthening the power of the Korea Trade Commission, bolstering monitoring on imports and revising laws to prevent the circumvention of anti-dumping duties. He added the government will hold regular meetings with exporting companies to discuss trade uncertainties. (Yonhap)
Korea Herald
19-03-2025
- Business
- Korea Herald
Korea tightens steel import rules to curb antidumping loopholes
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.
Korea Herald
19-03-2025
- Business
- Korea Herald
S. Korea to take measures to prevent circumvention of antidumping duties on steel imports
South Korea will take measures to prevent the circumvention of antidumping duties on imported steel products as part of efforts to protect the local steel industry amid heightened global trade barriers, the industry ministry said Wednesday. The Ministry of Trade, Industry and Energy announced the plan at a meeting of economy-related ministers, presided over by acting President Choi Sang-mok, according to ministry officials. The plan comes after US President Donald Trump's administration imposed 25 percent tariffs on all steel imports last week, a move expected to deal a blow to the South Korean steel industry. To prevent trade circumvention, the government plans to revise its customs regulation to allow the Korea Trade Commission to investigate circumvention of antidumping duties by rerouting products through a third country. The government will also require a mill test certificate, which contains detailed information on the product's country of origin, for all steel imports. Additionally, a special team will be created under the Korea Customs Service to crack down on the practice of disguising imported goods as domestically produced products for domestic distribution or exports. The ministry said it will also work to exempt duties on Korean steel products by closely communicating with the governments of major economies, including the US, through various trade channels. The government will also respond to the planned imposition of carbon levies by the European Union under the Carbon Border Adjustment Mechanism and the EU's push to strengthen its trade safeguard measures, as well as India's safeguard investigation of steel imports, the ministry added. The ministry plans to devise a strategy to bolster the competitiveness of the local steel industry later this year to overcome the crisis sparked by the global trade war. (Yonhap)
Korea Herald
20-02-2025
- Business
- Korea Herald
Trade commission recommends maximum 38 pct antidumping tariffs on Chinese thick steel plates
South Korea's trade watchdog on Thursday made a preliminary decision to impose antidumping tariffs on Chinese thick steel plates after its initial investigation identified potential damage to the domestic industry. Under the decision, the Korea Trade Commission (KTC) will ask the Ministry of Economy and Finance to impose an antidumping tariff of between 27.91 and 38.02 percent on hot-rolled thick plates imported from China, according to its officials. The KTC launched an investigation into the case in October, three months after Hyundai Steel filed a complaint with the government against low-priced thick steel plates imported from China. The decision comes amid mounting concerns in the Korean steel industry after the US government announced plans to impose 25 percent tariffs on all steel and aluminum imports starting March 12. Market watchers say the new US duties could worsen challenges facing the local industry, which is already grappling with oversupply, especially from China, and declining global demand. If cheaper Chinese steel products, unable to enter the US market, flood other regions, such as Europe and Southeast Asia, South Korean steelmakers will likely face tougher price competition. "Local businesses have been in a chicken game against Chinese companies that flooded the market with cheap thick steel plates, but with the latest FTC decision, they now have a chance to improve their profitability and protect the domestic market," an official at a Korean steel company said, asking not to be identified. The volume of thick steel plate imports has been on a steady rise in recent years, nearly doubling from 1.26 million tons in 2021 to 2.06 million tons last year, while the demand for such products in South Korea dropped from 8.11 million tons to 7.8 million tons over the same period, according to industry sources. The final verdict is expected to be delivered about five months later. Meanwhile, the KTC decided to extend the implementation of existing dumping prevention measures on flat-rolled stainless steel and oriented polypropylene (OPP) film products from China, Indonesia and Taiwan. Under its decision, the KTC will ask the finance ministry to continue requiring a pledge to adjust prices of flat-rolled stainless steel products from the countries and slap antidumping tariffs of between 2.5 percent and 25.04 percent on OPP film imports.
Korea Herald
13-02-2025
- Business
- Korea Herald
Seoul set to discuss possible anti-dumping duty on Chinese thick steel plates: sources
The South Korean government will hold a meeting next week to discuss possible anti-dumping measures on Chinese thick steel plate imports amid growing concerns for the local steel industry sparked by the global trade war, sources said Thursday. The Korea Trade Commission will hold a meeting next Thursday to come up with a preliminary decision on a complaint filed by Hyundai Steel Co., South Korea's second-largest steelmaker, calling for anti-dumping measures against Chinese thick steel plates, according to sources familiar with the matter. The KTC commenced an investigation into the case in October after Hyundai Steel filed a complaint with the government in July against low-priced thick steel plates imported from China. If the KTC recognizes any damage suffered by South Korean companies due to cheap Chinese products in its preliminary decision next week, the government may take steps to slap anti-dumping tariffs on such imports. The KTC is reportedly reviewing the matter with caution as its decision could have a big impact on the Korean thick steel plate market, which has an estimated value of some 8 trillion won ($5.5 billion). The Korean steel industry has been on alert after the US government announced plans to impose a 25 percent tariff on all steel and aluminum imports starting March 12. Market watchers say the new US duties could worsen challenges facing the local industry, which is already grappling with oversupply, especially from China, and declining global demand. If cheaper Chinese steel products, unable to enter the US market, flood other regions, such as Europe and Southeast Asia, South Korean steelmakers will likely face tougher price competition. "All the countries in the world are currently taking trade measures in the steel sector," a government official said, noting the government will review the matter "in accordance with related laws and procedures." Meanwhile, during an industrial investment strategy meeting Wednesday, Industry Minister Ahn Duk-geun said the government will strengthen trade remedies to protect local industries amid heightened uncertainties in global trade. (Yonhap)
