U.S. Court Halts Steel Tariff on Hyundai Ste... > 경제기사 | natenews rank

Photo = Yonhap news

[Alpha Biz= Reporter Kim Sangjin] A U.S. court has intervened in a decision by the U.S. Department of Commerce to impose a 1.1% countervailing duty on steel plates exported from Hyundai Steel and Dongkuk Steel, ruling that the low electricity prices in Korea do not qualify as subsidies for the steel industry. This decision has alleviated concerns for the two companies.

On December 17, the South Korean Ministry of Trade, Industry and Energy announced that the U.S. Court of International Trade CIT had ordered the U.S. Department of Commerce to reconsider its decision after Hyundai Steel filed a lawsuit arguing that the countervailing duties were unjustified. The CIT requested that the U.S. Commerce Department amend its judgment and resubmit it for further review.


Countervailing duties are imposed when a foreign country provides subsidies directly or indirectly to a particular industry or product, which could harm the importing countrys industry. In this case, the U.S. Department of Commerce had argued that Koreas low electricity prices amounted to a subsidy for the steel industry, and they planned to apply a countervailing duty on steel plates exported to the U.S.

The court, however, sided with Korea, agreeing that the U.S. Department of Commerces determination was unreasonable because it did not consider whether the subsidies were specific to certain companies or industries. The U.S. Commerce Department had initially claimed that the electricity consumption in the steel sector was disproportionately high, thus justifying the duty, but the court rejected this argument.

Following this ruling, the U.S. Department of Commerce is required to revise its determination regarding the "specificity" of the subsidy within 90 days and resubmit it to the court.

The South Korean government has been actively supporting Hyundai Steel and Dongkuk Steel in this case, working closely with domestic and international law firms to develop new defense strategies. The government stated that it would continue to fight the issue of electricity-related countervailing duties in future proceedings.

관련기사

▶ Korean Air Faces Controversy Over Downgrade from Business to Economy Class

▶ Prosecutors Request Arrest Warrant for Geonjin Beopsa Over Illegal Political Funds

▶ 제11회 한국경제문화대상 시상식 개최...경제·문화 16개 부문 19명 수상

▶ NH농협금융 회장·은행장 인사 난항…다음 주 윤곽 드러날 듯

▶ 축구협회장 허정무·체육회장 강태선 적합 인물 설문조사 각각 1위

/ 알파경제 Kim SangJin Reporter