- Country or region
- South Korea
- Trade topics
- Dispute settlement
- Context
- WTO - Complaint against the EU
Summary of the case
- Complaint by: Korea, Republic Of
- Complaint against: EU
- Third parties: No third party
Korea challenges the imposition of countervailing duties (CVD) on DRAMS manufactured by Hynix in Korea
Relevant WTO provision: GATT (VI:3, X:3); SDM (1, 2, 10, 11, 12, 14, 15, 17, 22, 31.1)
Status
The DSB adopted the Panel report on 3 August 2005. The Panel broadly confirmed the EC finding that the Korean government had directed nominally private banks to bail-out Hynix and, consequently, that four out of the five bail-out programmes investigated were actually subsidies conferring a specific benefit to Hynix and causing injury to the EC industry.
The remaining programme, which the panel acknowledged conferred a benefit to Hynix but considered as not directed by the Korean government, involves only a very small amount. The Panel’s only reservations were recommendations that the EC should fine-tune its methodology for calculating the benefit conferred to Hynix, re-evaluate one injury factor out of the 15 subject to investigation and refine some technical aspects of the analysis concerning the causal link between the subsidies and the injury.
The EC fully implemented the DSB ruling and recommendations with the adoption of Council Regulation (EC) No 584/2006 (published in the Official Journal No L 103 of 12 April 2006).
- Consultations requested: 25 July 2003
- Panel requested: 19 November 2003
- Panel established: 23 January 2004