The Korean government will file an application with the World Trade Organization (WTO) to rule whether the U.S. imposition of heavy tariffs on Korean memory chips is fair as early as this month.

The decision comes after the U.S. Commerce Department levied 44.71 percent in countervailing duties on Hynix-made chips Tuesday.

In a statement, the Ministry of Foreign Affairs and Trade (MOFAT) regretted that the Bush administration accommodated most of the allegations made by U.S. chipmaker Micron Technology, a Hynix rival.

In its preliminary ruling last April, the penalty tariff was 57.37 percent but the final rate fell to 44.71 percent. In the same ruling, the U.S. announced that Samsung Electronics’ subsidy rate was 0.16 percent but was adjusted to 0.04 percent at the final ruling. Punitive tariffs on subsidies of less than 1 percent are not levied.

According to Deputy Commerce-Industry-Energy Minister Kim Jong-kap, economic affairs ministers will meet today to make a final decision to take the case to the WTO.

``The government expects the U.S. Commerce Department’s ruling to be overturned at a hearing to be held by the U.S. International Trade Commission (ITC) on June 24. Following the hearing, the ITC will make its final ruling late next month,’’ he said.

He said there is still a chance the ITC will rule in favor of Korea, which would nullify the U.S. Commerce Department’s ruling.

According to the Ministry of Commerce, Industry and Energy, the ITC will make a final ruling on July 29 on whether South Korean exports of dynamic random access memory (DRAM) chips actually caused material injury to the U.S. semiconductor industry.

The Korean government stressed that state-run banks as well as Citibank extended loans to Hynix purely on a commercial basis.

It said Hynix shipments were too small to inflict material injury on the U.S. DRAM industry.

By: DocMemory
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