Government Anti-Dumping Duty Announcements Double Amid Surge of Low-Priced Chinese Imports... 70% of Dumping Cases Involve Chinese Products

The number of government announcements related to anti-dumping duties has roughly doubled compared to the same period last year. This surge appears to be the result of a record-high number of trade remedy applications filed by domestic companies last year, driven by a combination of global oversupply and the spread of protectionism, which in turn has led to a flood of low-priced Chinese goods. Following an administrative time lag, related procedures have now entered full swing.

An industrial robot from the Chinese company 'Huanak,' which is subject to a provisional anti-dumping duty of 26.63%. Source: Huanak official website.

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According to the official gazette on April 14, the Ministry of Economy and Finance has issued a total of 11 anti-dumping-related announcements this year, nearly double the number from the same period last year (6 cases). These include three provisional anti-dumping duties, three final duties, three reviews, and two extensions of duty periods. Notably, among the 11 announcements this year, seven targeted Chinese products, making up an overwhelming majority.

Examining this year's cases involving Chinese products: provisional duties (with supplier-specific rates ranging from 9.53% to 19.17%) were imposed on "Chinese butyl acrylate," and the provisional duty period (with rates from 21.17% to 43.60%) on "Chinese four-axis or more vertical articulated industrial robots" was extended. Final duties were imposed on "Chinese polyethylene terephthalate (PET) film" (with rates from 7.31% to 36.98%) and "Chinese single-mode optical fiber" (at a 43.35% rate). The remaining three cases are currently under review for duty imposition.

Anti-dumping duties are finalized by the Ministry of Economy and Finance after investigations and recommendations by the Korea Trade Commission when imported foreign goods are sold below normal value and cause harm to domestic industries. The Trade Commission's investigation is divided into a preliminary and a main investigation. Based on the preliminary investigation, a "provisional duty" can be imposed, while a "final duty" is imposed after the main investigation concludes. Provisional duties carry the same legal force as final duties, and importers must pay the corresponding duty rate at the time of customs clearance in Korea.

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The sharp increase in anti-dumping announcements is attributed to a record 13 trade remedy applications by domestic companies last year-the highest since the Trade Commission was established in 1987. The spread of protectionism under the second Trump Administration and a surge of low-priced products due to oversupply from China prompted Korean companies to take action. As these cases proceeded through preliminary and main investigations, they resulted in the imposition of provisional or final duties, leading to more related announcements this year. According to the Ministry of Economy and Finance, there have been a cumulative total of 19 Chinese products subject to final duties, accounting for about 70% of all 27 items currently subject to anti-dumping measures under the ministry's decree. This far exceeds the next group of countries, such as Vietnam (4 items), as well as Taiwan, Thailand, and Indonesia (3 items each).

Oh Jonghyuk, a senior researcher at the Korea Institute for International Economic Policy (KIEP), stated, "In recent years, China has continuously expanded its production capacity, and as domestic demand stagnates, the excess output is being pushed abroad. Leveraging price competitiveness through mass production, they are launching an aggressive offensive that directly impacts domestic industries, resulting in increased 'dumping damages.' This trend is likely to continue for the time being."

To counter the surge in unfair trade practices, the government established a dedicated "Anti-Dumping Duty Team" within the Tax Policy Bureau of the Ministry of Economy and Finance last year. This move aims to aggressively respond to unfair trade and protect Korean companies and industries. A government official commented, "In particular, industries such as steel and chemicals are struggling, which seems to be boosting related trade remedy applications. We are focusing administrative resources on effectively blocking unfair trade practices and preventing harm to domestic industries, in close cooperation with the Trade Commission."

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