The European Union will impose a 33-percent countervailing tariff on Hynix Semiconductor 's  memory chips starting April 25.

Representatives of 15 EU governments supported the commission's tariff proposals in a 10 to five vote Thursday. Three countries -- France, Ireland and Denmark -- voted against, and two others abstained, the news service said.

The EU decision follows a similar preliminary determination by the U.S. Commerce Dept. to impose a 57.37% tariff on DRAM products shipped by Hynix.

Hynix's chip exports to Europe are estimated at 15 percent, or W140 billion, of its total yearly exports, and the EU decision is likely have a serious impact on the Korean firm, which has been struggling due to snowballing losses over the last several years.

The decision is part of a larger European strategy to counter South Korea's business methods. In another move, the EU is preparing to file a complaint at the Geneva-based World Trade Organization, charging South Korea with illegally bailing out shipbuilders. Korean auto makers and steel mills could also be targeted,

Sources said that the EU countervailing duties were done in retaliation to the extension by Korean banks, which are largely under the control of the government, of large-scale debt-for-equity conversions and funds for the restructuring of the firm.

The EU Executive Committee is likely to impose the tentative tariff for the next four months before making a final decision on definitive duties, which could last for five years.

By: DocMemory
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