South Korea’s Final Decision on Anti-Dumping Sunset Review
On February 20, 2025, South Korea's Trade Commission announced the results of its first sunset review of the anti-dumping (AD) measures on stainless steel flat-rolled products originating in China, Indonesia, and Taiwan. After thoroughly evaluating the ongoing need for protection against unfair trade practices, the commission decided to continue the anti-dumping duties for an additional five years. This decision was made to ensure that the South Korean market remains shielded from any potential harm caused by dumping, where goods are sold at unfairly low prices.
Duty Rates for China, Indonesia, and Taiwan
The anti-dumping duty rates for each of the three countries involved are as follows:
• China: 24.83%
• Indonesia: 25.82%
• Taiwan: 9.07%
These duties will be applied to stainless steel flat-rolled products imported into South Korea from these nations, continuing the protection for local manufacturers against unfair pricing practices that could undermine the domestic market.
Price Commitments and Exemptions
However, price commitments were reached for certain companies, which will impact their duty rates. These companies include:
• China’s Shanxi Taigang Stainless Steel Co., Ltd. and its affiliates
• Angang Lianzhong Stainless Steel Corporation (China)
• PT Indonesia Tsingshan Stainless Steel and its affiliates
• Yieh United Steel Corporation (Taiwan) and its affiliates
• Walsin Lihwa Corporation (Taiwan)
These companies have agreed to certain price commitments, which likely means they have taken steps to ensure that their products are no longer sold at prices considered to be unfairly low, thereby avoiding the higher duties.
The Role of Sunset Reviews in Anti-Dumping Measures
Sunset reviews are an essential mechanism under international trade laws that allow countries to regularly reassess whether continuing an anti-dumping duty is necessary to prevent injury to the domestic industry. This process ensures that such protectionist measures are not extended indefinitely but are based on current market conditions. The South Korean Trade Commission has determined that extending the duties for another five years is necessary to avoid a resurgence of unfair pricing practices and to protect local steel manufacturers.
Impact on the South Korean Steel Market
The continuation of the anti-dumping duties for the next five years has several important implications for the South Korean steel market:
1. Protection for Domestic Producers: Local manufacturers of stainless steel flat-rolled products will benefit from reduced competition from dumped products, as the duties will make imports from China, Indonesia, and Taiwan more expensive.
2. Price Stability: By preventing the influx of unfairly priced products, the duties will help stabilize prices in the South Korean market, ensuring that local producers are not undercut by cheaper imports.
3. Encouragement for Fair Competition: The decision encourages foreign companies to compete fairly, by ensuring that they price their goods based on market conditions rather than using artificially low prices to gain market share.
HS Code Breakdown of Affected Products
The anti-dumping duties apply to products under various HS codes, specifically related to stainless steel flat-rolled products. These codes include:
• 7219.12.1090, 7219.12.9000
• 7219.13.1090, 7219.13.9000
• 7219.14.1090, 7219.14.9000
• 7219.22.1090, 7219.22.9000
• 7219.23.1090, 7219.23.9000
• 7219.24.1090, 7219.24.9000
• 7219.31.1090, 7219.31.9000
• 7219.32.1090, 7219.32.9000
• 7219.33.1090, 7219.33.9000
• 7219.34.1090, 7219.34.9000
• 7219.35.1090, 7219.35.9000
• 7219.90.1090, 7219.90.9000
• 7220.11.1090, 7220.11.9000
• 7220.12.1090, 7220.12.9000
• 7220.20.1090, 7220.20.9000
• 7220.90.1090, 7220.90.9000
These HS codes represent a wide range of flat-rolled products made from stainless steel, such as sheets, coils, and plates, which are commonly used in industries ranging from construction to automotive and consumer goods manufacturing.
Looking Ahead for Trade Relations
The ruling marks a significant milestone in South Korea’s ongoing efforts to protect its steel industry from unfair trade practices. However, it also highlights the dynamic nature of international trade relations. Foreign producers may seek to adjust their pricing strategies or renegotiate terms to reduce the impact of these duties. Chinese, Indonesian, and Taiwanese companies may focus on improving product quality or exploring alternative markets to offset the potential decrease in exports to South Korea.
Key Takeaways:
• South Korea confirmed the continuation of anti-dumping duties on stainless steel flat-rolled products from China, Indonesia, and Taiwan for another five years.
• The duty rates are set at 24.83% for China, 25.82% for Indonesia, and 9.07% for Taiwan.
• Price commitments were reached with several companies, potentially reducing the impact of the duties for those firms.
• The affected products are under various HS codes, including 7219 and 7220, covering flat-rolled products made from stainless steel.
• The sunset review process is designed to reassess the need for protection against dumping practices at regular intervals.
• The duties help protect South Korea’s steel industry from unfair competition, stabilize prices, and encourage fair competition in the market.
• Foreign producers, particularly from China, Indonesia, and Taiwan, will likely adjust their pricing or strategies to maintain competitiveness in South Korea’s market.
