Background of the Investigation
In September 2024, the U.S. Department of Commerce initiated a detailed review of countervailable subsidies provided to Korean producers & exporters of stainless steel sheet & strip in coils. The scope included shipments made between January 1, 2022, & December 31, 2022. The process followed standard protocols under section 751(a)(1)(A) of the Tariff Act of 1930.
Preliminary results were published earlier, inviting stakeholders to comment. The final outcome, released on April 16, 2025, concludes with no major changes from the draft version.
Scope of the Order
The review specifically covers stainless steel sheet & strip in coils, commonly used in industrial & consumer-grade stainless steel products. These materials are critical for infrastructure, appliances, & manufacturing sectors across North America.
Companies Under Review
Three South Korean firms were scrutinized:
• Hyundai BNG Steel Co., Ltd. – Received a subsidy rate of 0.57%
• Hyundai Steel Company – Received a subsidy rate of 2.47%
• Geumok Tech. Co., Ltd. – Assigned a significantly higher subsidy rate of 17.04%
Samsung STS Co., Ltd. was officially excluded from the review since U.S. Customs & Border Protection data indicated no reportable shipments during the review period.
Analysis of Subsidy Programs
The Department of Commerce determined that certain government-provided financial contributions in South Korea qualified as countervailable subsidies. These benefits were deemed “specific,” meaning they targeted particular companies or sectors, creating unfair advantages in trade.
A detailed explanation of each program & related decisions is available through the Issues and Decision Memorandum, accessible via the centralized ACCESS system (https://access.trade.gov).
Administrative Decisions
The review period’s critical highlight was the rescission of the case against Samsung STS. As per 19 CFR 351.213(d)(3), no duty will be applied to Samsung STS for this cycle due to zero exports during the 12-month timeframe. The decisions regarding Hyundai BNG, Hyundai Steel, & Geumok Tech stand final without revisions.
Methodology & Enforcement
The Department of Commerce employed the Tariff Act’s provisions to determine the benefit & specificity of each subsidy. These evaluations involve complex calculations comparing domestic financial contributions with fair-market competitive standards.
All submissions, rebuttals, & comments from interested parties were examined before concluding the final subsidy rates, which remained unchanged from the earlier findings.
Key Takeaways:
• U.S. Commerce finalized subsidy rates for Korean stainless steel sheet & strip in coils.
• Hyundai BNG Steel Co., Ltd. faces a low countervailing duty of 0.57%.
• Hyundai Steel Company is levied a modest 2.47% duty.
• Geumok Tech. Co., Ltd. receives a high subsidy rate of 17.04%.
• Samsung STS Co., Ltd. was excluded due to no exports during the review year.
• The review applies to imports between January 1, 2022 – December 31, 2022.
• No changes were made to preliminary findings despite comment submissions.
• The U.S. emphasized that the subsidies are “specific” & provide undue benefit.
• This final ruling impacts future U.S.–Korea stainless steel trade flows.
• Public documents are accessible via the ACCESS electronic filing system.
