Korea to speed Hynix case to WTO, says report
Semiconductor Business News
(06/18/03 09:24 a.m. EST)
siliconstrategies.com
SEOUL, Korea --- Korea could file a formal complaint with the World Trade Organization against the United States' decision to impose import tariffs on memory chips manufactured by financially troubled Hynix Semiconductor Inc. within days, according to The Korea Herald quoting a senior Korean government minister today (June 18, 2003).
“The move by the U.S. Department of Commerce defies all economic principles, and we will take the case to the WTO as early as the end of this month," Kim Jong-kap, vice minister of commerce, industry and energy, is quoted as saying.
The U.S. Commerce Department announced on Tuesday its determination of a final import duty of 44.71 percent on Hynix imported DRAMs, intended to offset alleged subsidies by the Korean government(see June 17 story). The ruling was down from the preliminary determination of 57.37 percent the DOC made in early April.
The U.S. case against Hynix was brought last November by U.S. DRAM maker Micron Technology Inc., alleging that the South Korean chip firm received $11.7 billion in illegal Korean government-sanctioned subsidies as part of three different bailouts in the period January 2001 to June 2002.
But the high tariff, which if unopposed could drive Hynix closer to bankruptcy, has angered Hynix which believe the action is a form of subsidy to Micron and therefore violates international trade laws (see June 17 story).
That ruling came a week after the European Commission notified member countries of the European Union that it would recommend a countervailing duty of up to 35 percent on Hynix chips imported into its territory.
Hynix could still escape the U.S. duties if the International Trade Commission (ITC) decides that the U.S. petitioner, Micron, has not been hurt by subsidized competition from South Korea. The ITC is expected to issue its decision in late July or early August.
"Our immediate focus will be on convincing the ITC and the EU that the financial support the creditors gave Hynix was a part of a restructuring program approved by independent experts, including Citibank of the United States," the Korea Herald report quotes Kim saying. |
