Tiếng Việt
中文 (中国)
日本語
The Government of South Korea has decided to impose high anti-dumping duties on hot-rolled steel products, reflecting a strong trend toward increased use of trade remedy measures to control imports and protect its domestic industry.
According to the findings of the investigating authority, the proposed and approved anti-dumping duty rates range from approximately 28% to over 33%, depending on specific groups of enterprises and sources of supply. This is a significant duty level that may directly impact trade flows and alter the competitive structure of the South Korean steel market.
This decision follows an investigation concluding that imported products were sold at prices lower than their normal value, causing material injury to the domestic industry. The imposition of duties indicates that South Korean authorities are adopting a more assertive approach in addressing unfair trade practices.
Notably, in addition to imposing duties, South Korea is also considering the application of a price undertaking mechanism. Under this approach, exporting enterprises may avoid high duty rates if they agree to adjust their export prices to appropriate levels and comply with strict monitoring requirements. This represents a flexible tool while also demonstrating increasingly stringent regulatory control over import activities.
This measure goes beyond addressing a single case and reflects a broader trend of expanding the use of trade remedy instruments in the steel sector—an industry characterized by intense competition and frequent trade disputes globally.
With high duty rates and the potential combination of multiple regulatory tools, the South Korean market is becoming more restrictive for imports. This increases the likelihood of new investigations in the future, particularly in cases of sudden surges in import volumes or unusual price fluctuations.
Impacts and Warnings for Vietnamese Enterprises
South Korea is one of Vietnam’s key trading partners and a major market for steel products serving industrial production. In recent years, Vietnam has gradually increased its steel exports to this market.
In the context of South Korea intensifying the application of trade remedy measures with high duty rates and strict control mechanisms, Vietnamese enterprises should pay close attention to the risk of future investigations. Steel products with rapid export growth or those directly competing with South Korea’s domestic industry are likely to face higher risks.
Moreover, the introduction of price undertaking mechanisms reflects a diversification of trade management tools. Enterprises may not only face duties but also be required to comply with pricing commitments, reporting obligations, and periodic monitoring if they wish to maintain market access.
On the positive side, restrictions on supply from certain traditional markets may create opportunities for Vietnamese enterprises to expand their market share. However, to capitalize on these opportunities, enterprises must ensure genuine competitiveness while strictly complying with regulations on origin, pricing, and transparency.
In the long term, proactively monitoring trade remedy developments, establishing robust risk management systems, and enhancing product value will be key factors enabling Vietnamese enterprises to adapt effectively to an increasingly stringent international trade environment.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
