US Department of Commerce: "Korean Electricity Rates Are Not Subsidies for the Steel Industry"

"Does Not Meet Subsidy Requirements Under Relevant Laws"

Donald Trump, President of the United States (Photo by AP Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The U.S. Department of Commerce has concluded that "South Korea's electricity rates do not constitute subsidies for the steel industry." This denies claims by U.S. companies that Korea Electric Power Corporation (KEPCO) supported the steel industry in the form of subsidies by purchasing electricity at low prices from its power generation subsidiaries.

According to the Ministry of Trade, Industry and Energy on the 12th, the U.S. Department of Commerce made this final determination on the 11th (local time) as a result of the second administrative review investigation on countervailing duties for Korean galvanized steel sheets.

The Department of Commerce has been investigating South Korea's electricity rate determination method since July last year. The investigation was conducted following claims by local companies that the Korean government supplied electricity cheaply to domestic steel companies, thereby enhancing the price competitiveness of Korean galvanized steel sheets.

From the time of the filing, the Korean government prepared response measures through a public-private joint effort and actively participated in related investigation procedures, including a public hearing held in the U.S. last month.

During meetings with the Department of Commerce, Korea emphasized that an objective and fair judgment on Korean electricity rates should be made.

In the final ruling, the Department of Commerce judged that the Korea Power Exchange's method of calculating purchase prices aligns with market principles and therefore does not constitute a subsidy requiring countervailing duties.

On the same day, the Department of Commerce finalized countervailing duty rates on Korean galvanized steel sheets ranging from de minimis (0.44%) to 7.16%.

Countervailing duties are tariffs imposed by the importing country's government when imported products are found to have been subsidized by the exporting country's government and cause injury to the domestic industry.

The anti-dumping duty rates announced on the same day were also finalized between 0.00% and 2.43%.

An official from the Ministry of Trade, Industry and Energy expressed expectations that "the tariff rates, which had been imposed up to 15.8%, have been significantly reduced, improving export conditions for the Korean steel industry to the U.S."

This content was produced with the assistance of AI translation services.