Trade Commission Delivers Definitive VerdictAfter Extended Investigation
The Korea Trade Commission has concluded its lengthyanti-dumping investigation into Vietnamese cold-rolled stainless steel with adecisive ruling against exporters. On April 24, 2025, the commission announcedits final affirmative determination, recommending that South Korea's Ministryof Economy and Finance impose substantial anti-dumping duties on these productsfor five years. This decision marks the culmination of an investigation thatbegan in October 2024, following a petition from domestic producer POSCO, andwas extended beyond its original March deadline to allow for more thoroughexamination of evidence. The investigation's extension until early May 2025 wasreportedly necessitated by the KTC's personnel constraints amid a rising numberof trade remedy cases, highlighting the growing complexity of internationaltrade disputes in the steel sector.
Vietnamese Manufacturers Face DifferentiatedDuty Structure
The KTC's final determination establishes a two-tier dutystructure that varies by manufacturer. YongJin Metal Technology (Vietnam) Co.,Ltd. faces the highest rate at 18.81%, a significant increase from the 3.66%provisional rate applied earlier in the investigation. Meanwhile, TVL JointStock Company, TVL Steel Production And Construction Joint Stock Company, andall other Vietnamese exporters will be subject to an 11.37% duty rate. Thissubstantial disparity in tariff levels reflects the commission's assessment ofdifferent dumping margins among Vietnamese producers, with YongJin's practicesapparently deemed more harmful to South Korean market conditions. Thesignificant increase from provisional to final rates for YongJin particularlydemonstrates how investigations can evolve as more data becomes available.
Price Commitments Rejected in Favor of StrictTariff Enforcement
In a notable aspect of the ruling, the KTC explicitlyrecommended that the Minister of Economy and Finance reject price commitmentsoffered by Vietnamese exporters. Price commitments typically allow foreignproducers to avoid anti-dumping duties by agreeing to maintain minimum pricelevels for their exports. The rejection suggests South Korean authorities havelimited confidence in the effectiveness of such voluntary measures in thiscase, preferring instead the certainty of enforced tariffs. This approach reflectsa more stringent stance on trade enforcement, potentially signaling SouthKorea's broader approach to protecting its domestic steel industry from what itperceives as unfair competition. The decision aligns with a growing globaltrend of preferring definitive trade remedies over negotiated solutions insteel trade disputes.
Wide Range of Products Fall Under New TradeRestrictions
The anti-dumping measures cover an extensive range ofcold-rolled stainless steel products, encompassing 24 different harmonizedsystem codes. These include various specifications of cold-rolled stainlesssteel sheets, plates, and coils classified under HS codes beginning with 7219and 7220. The comprehensive scope ensures that virtually all varieties ofcold-rolled stainless steel from Vietnam will be subject to the new duties,preventing circumvention through minor product modifications or reclassifications.This broad coverage demonstrates the systematic approach taken by South Koreanauthorities to protect their domestic industry from what they've determined tobe unfairly priced imports across the entire product category.
Provisional Measures Extended During FinalDetermination Process
Prior to this final determination, South Korea had alreadyimplemented provisional anti-dumping duties on the subject goods. On April 1,2025, the Ministry of Economy and Finance extended these temporary measures foran additional three months until July 18, 2025. This extension ensuredcontinuous protection for domestic producers during the final phase of theinvestigation and deliberation process. The transition from provisional topermanent measures maintains regulatory continuity while providing certaintyfor both domestic producers and importers about the trade landscape for thecoming five years. Such continuity is particularly important for steel marketparticipants who require stable policy environments for long-term businessplanning.
Korean Steel Industry Secures Protection AmidRegional Competition
The imposition of these duties represents a significantvictory for South Korea's domestic steel producers, particularly industry giantPOSCO, which initiated the case with its petition to the KTC. The measure aimsto level the playing field for Korean manufacturers who have argued thatunfairly priced Vietnamese imports have damaged their market position andprofitability. South Korea's steel industry, once a cornerstone of its economicmiracle, now faces intensifying competition from regional producers withpotentially lower production costs. This trade action demonstrates thegovernment's commitment to maintaining the viability of its steel sector as astrategic industry, even as global steel markets face overcapacity and pricepressures.
Key Takeaways:
• South Korea's Korea Trade Commission has imposedanti-dumping duties ranging from 11.37% to 18.81% on Vietnamese cold-rolledstainless steel products, with YongJin Metal Technology facing the highest rateof 18.81%.
• The final determination explicitly rejected pricecommitments offered by Vietnamese exporters, indicating South Koreanauthorities' preference for enforced tariffs over voluntary pricing agreements.
• The anti-dumping measures cover 24 different HS codes,ensuring comprehensive protection for domestic producers across all varietiesof cold-rolled stainless steel products from Vietnam.
