Seoul, Aug 4 South Korea has opened an anti-dumping investigation into hydrocarbon resin imports from China and Taiwan after a local company has claimed cheap imports from the countries were damaging the local industry, informed sources said on Sunday.
According to the sources, the Korea Trade Commission of the Ministry of Trade, Industry and Energy has recently begun the investigation into four Chinese companies and three Taiwanese companies, following a petition from Kolon Industries Inc, reports Yonhap news agency.
The South Korean industrial materials firm claimed that it had suffered damages due to the supply of low-priced products from the Chinese and Taiwanese companies. Kolon Industries alleged that the dumping margins for Chinese and Taiwanese companies stood at 15.52 per cent and 18.52 per cent, respectively.
Hydrocarbon resin, also known as petroleum resin, is a material processed from by-products generated during the cracking process of naphtha.
It is used in products like paints and adhesives to provide tackiness and adhesiveness, and serves as a key raw material for both industrial and general consumer goods.
South Korea currently imposes a basic tariff rate of 8 percent on hydrocarbon resin. However, under the free trade agreement with China, Chinese products are imported duty-free.
"Considering the decline in operating profit margins in the South Korean industry's domestic business sector, it cannot be said that the damage is insignificant," the trade commission said.
The commission will make a preliminary determination on the case within a maximum five-month period and will reach a final conclusion within an additional maximum seven-month period.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor