The South Korea government is seeking to cut Hynix Semiconductor Inc.'s memory chip shipments to the United States if Washington will suspend its proposed 57 percent penalties on the memory maker, Reuters reported today.

Through the possible deal, the Ministry of Commerce, Industry and Energy said it would further request a suspension agreement that might also involve setting a limit on Hynix's DRAM prices, the report said.

The Department of Commerce last week charged that South Korea had unfairly subsidized memory chips imported into the U.S. in 2001 and 2002. If the ruling goes into action, an import duty of 57 percent would be imposed on Hynix in August that could price the company out of the U.S. memory market.

Hynix is also facing 30 to 35 percent import duties in the European Union.

A final ruling is expected from the U.S. Commerce Department on June 16, the news service reported, adding that an order imposing duties could be issued August 7 if the preliminary rulings were upheld.

The U.S. will decide by April 15 whether to negotiate a government-to-government suspension agreement with South Korea, according to the report.

By: DocMemory
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