SOUTH KOREA

SUBSIDY PROGRAMS AIMED AT INDUSTRIAL SECTORS

Last Reviewed October 2008

Effective February 15, 2000, Import Administration began publishing “Decision Memos” to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a Decision Memo was published, you will find a link to the memo listed below.

In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.

COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in those cases.

Poongman Restructuring

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] Based on clarification received after the Preliminary Determination about Poongman’s restructuring, we have revised our approach to the company’s restructuring, which involved creditors swapping debt for equity and extending loan maturities and a government entity and private investors injecting cash into the company. See Poongman Analysis Memorandum. Specifically, we now determine that it is Poongman’s, and not Namhan’s, equityworthiness that must be analyzed. Based on our examination, we determine that Poongman was unequityworthy in 2004, within the meaning of 19 CFR 351.507(a)(4). The facts on which the Department’s reasoning is based are proprietary and cannot be further discussed in this document. For the Department’s analysis, see Poongman Analysis Memorandum at the comment entitled “GOK Assisted and Directed Poongman’s Creditors.” In addition, we have examined the KDB’s debt-for-equity swap and extension of loan maturities and a government entity’s cash infusion into Poongman in the context of Poongman’s 2004 restructuring. Regarding these events, we determine that they constitute financial contributions made to Poongman within the meaning of section 771(5)(D)(i) of the Act and that such assistance is de facto specific to Poongman within the meaning of section 771(5A)(D)(iii)(I) of the Act, because the restructuring is limited to Poongman. The facts on which the Department’s reasoning is based are proprietary and cannot be further discussed in this document.

Sale of Pulp for Less Than Adequate Remuneration

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] The Donghae Pulp Company (DP) is the sole domestic producer/supplier of chemical pulp to the Korean pulp and paper industry. DP sells one type of chemical pulp to CFS producers, specifically bleached woodcraft pulp from the broadleaf trees. The key input into the production of CFS paper is chemical pulp, which respondents either import or purchase domestically from DP. During the POI, all respondents purchased chemical pulp directly from DP. In the Preliminary Determination, we found DP to be a government authority under section 771(5)(B) of the Act. Upon review of comments received from interested parties, we continue to find that DP is a GOK authority. See Comments 11 through 15. Therefore, we find that DP’s provision of chemical pulp constitutes a financial contribution because it is the provision of a good as defined in section 771(5)(D)(iii) of the Act. We also find that provision of chemical pulp is specific in accordance with section 771(5A)(D)(iii)(I) of the Act, because it is limited to the pulp and paper industry.

Sales of Pulp From Raw Material Reserve for Less Than Adequate Remuneration

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] The Korean Public Procurement Service (PPS),/6/ established in January 1949, is a government procurement agency that stockpiles certain raw materials (e.g., aluminum, copper, and nickel), basic necessities (e.g., salt), and industrial use materials (e.g., chemical pulp and natural rubber) using government funds. PPS facilitates the short- and long-term supply of goods and seeks to stabilize consumer prices, pursuant to the Government Procurement Act.

Each year the PPS formulates a storage plan in accordance with the economic policies of the GOK. The release of stored items is carried out in accordance with the yearly plan. The GOK reported that prices for released items are determined based on the cost and market price at home and abroad and that in certain circumstances goods could be released for a price lower than the purchase price. The PPS publicly announces the stockpile release sales via its website and sells directly to end users. During the POI, PPS sold chemical pulp, some of which was purchased by Moorim SP.

We find that PPS’s provision of chemical pulp constitutes a financial contribution because it is the provision of a good as defined in section 771(5)(D)(iii) of the Act. We also find this provision of chemical pulp to be specific in accordance with section 771(5A)(D)(iii)(I) of the Act because it is limited to end users of pulp or entities associated with end users of pulp.

GOK Direction of Credit and Other Financial Assistance

DRAMS (2005)   72 FR 51609 (9/10/07 - Prelim);   73 FR 14218 (3/17/08 - Final);   Decision Memo
DRAMS (2004)   71 FR 46192 (8/11/06-prelim);   72 FR 7015 (2/14/07 - Final);   Decision Memo
DRAMS (4/03-12/03) 70 FR 54523 (9/15/05-prelim);   71 FR 14174 (3/21/06-final);   Decision Memo Amended
DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended

The Department has examined the issue of whether the GOK controlled the lending practices of banks in Korea in past cases. For the period through 1991, we determined that the GOK's direction of credit policies resulted in countervailable subsidies to the ROK steel industry. In subsequent determinations, the Department found that the GOK continued to control, directly and indirectly, the long-term lending practices of most sources of credit in the ROK through 1998. We provided the respondents in the current proceeding an opportunity to present new factual information concerning the GOK's direction of long-term lending during this previously-examined period. No party contested or provided new information challenging the Department's findings prior to 1998. Therefore, we determined that the GOK controlled, directly and indirectly, the long-term lending practices of most sources of lending in the ROK through 1998, with the exception of loans from Korean branches of foreign banks and, consequently, that the GOK entrusted and directed these banks to make loans as directed by the GOK.

Hynix Financial Restructuring and Recapitalization

DRAMS (4/03-12/03) 70 FR 54523 (9/15/05-prelim);   71 FR 14174 (3/21/06-final);   Decision Memo Amended
DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended

We determined that the GOK directed Hynix' creditor banks to participate in restructuring programs and to provide credit and other funds to Hynix in order to assist it through its financial difficulties. The financial assistance provided to Hynix by its creditors took various forms. We determined that these different means of supporting Hynix were financial contributions as described in section 771(5)(D) of the Act. Specifically, the loans, convertible bonds, extensions of maturities (which we view as new loans), D/A financing, usance financing, overdraft lines, debt forgiveness, and debt-for-equity swaps are direct transfers of funds from the GOK-directed financial institutions to Hynix. (See section 771(5)(D)(i) of the Act.) Based on this and other information as outlined in the Federal Register notice, we determined these programs to be countervailable.

Operation G-7/HAN Program

DRAMS (2005)   72 FR 51609 (9/10/07 - Prelim);   73 FR 14218 (3/17/08 - Final);   Decision Memo
DRAMS (2004)   71 FR 46192 (8/11/06-prelim);   72 FR 7015 (2/14/07 - Final);   Decision Memo
DRAMS (4/03-12/03) 70 FR 54523 (9/15/05-prelim);   71 FR 14174 (3/21/06-final);   Decision Memo Amended
DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended

Under the Framework Act on Science and Technology, the GOK made direct financial contributions in the form of interest-free loans to respondent companies under the Operation G-7/HAN Program. These loans were provided as matching funds in support of the Next Generation Semiconductor Technology Project from 1993 through 1997 through the Ministry of Science and Technology (``MOST''), the Ministry of Commerce, Industry, and Energy, and other administrative authorities. We determined these financial contributions were countervailable.

21st Century Frontier R&D Program

DRAMS (2005)   72 FR 51609 (9/10/07 - Prelim);   73 FR 14218 (3/17/08 - Final);   Decision Memo
DRAMS (2004)   71 FR 46192 (8/11/06-prelim);   72 FR 7015 (2/14/07 - Final);   Decision Memo
DRAMS (4/03-12/03) 70 FR 54523 (9/15/05-prelim);   71 FR 14174 (3/21/06-final);   Decision Memo Amended
DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended

The 21st Century Frontier R&D program is a GOK program established in 2000 that provides loans to semiconductor manufacturers in the form of matching funds for research and development to overcome the technological limits of next-generation semiconductor technology, among other goals. The GOK made direct financial contributions under this program in the form of interest-free loans through the MOST and other administrative authorities. We determined this program to be countervailable.

Debt Restructuring for Kangwon

Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo

Following the foreign exchange crisis of 1997, debt restructuring was undertaken for Kangwon. As a result of the debt restructuring, principal and interest payments were suspended on many of Kangwon's loans. In addition, repayment dates of all long-term loans were extended, and three additional types of long-term loans were created for Kangwon. We determined that the refinancing of loans was specific and therefore countervailable. With regards to the three additional types of loans created, we determined that the creation of new types of loans happened across a broad range of industries and was not specific, and, therefore, not countervailable.

Direction of Credit Loans Inconsistent with Commercial Considerations

Stainless Sheet & Strip in Coils (2005)   72 FR 51615 (3/07/07 - Prelim);   73 FR 2456 (7/13/07 - Final);   no Decision Memo
Cut-to-Length Steel Plate (2005)   72 FR 10163 (3/07/07 - Prelim);   72 FR 38565 (7/13/07 - Final);   Decision Memo
Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim) (2006)   71 FR 32519 (6/06/06 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32519 (6/6/06-final);   Decision Memo
Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Structural Steel Beams (SR) (Expedited review - no prelim);   70 FR 53167 (9/7/05-final);   Decision Memo
Stainless Sheet & Strip in Coils (2004) 71 FR 50886 (8/28/06-prelim);  
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  
Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final)
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo;   Amended
Stainless Sheet & Strip in Coils (2000) 67 FR 57399 (9/10/02-prelim);   68 FR 13267 (3/19/03-final & partial rescission);   Decision Memo
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Steel Plate in Coils (1997) 63 FR 47255 (9/4/98-prelim);   64 FR 15532 (3/31/99-final)
Stainless Sheet & Strip in Coils (11/98-12/99) 66 FR 47008 (9/10/01-prelim);   66 FR 1964 (01/15/02-final & partial rescission);   Decision Memo;   Amended
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo
Steel Sheet & Strip in Coils (1997) 63 FR 63889 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)
Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final)

The Government of Korea controls the practices of lending institutions in Korea and the steel sector receives a disproportionate share of low-cost, long-term credit, resulting in the conferral of countervailable benefits.

"Emergency Loans" to Sammi Steel

Steel Sheet & Strip in Coils (1997) 63 FR 63891 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

In 1992, the Government of Korea directed a package of 132 billion won in "emergency loans" to Sammi in order to save the company from bankruptcy. Because this emergency loan package was only provided to Sammi, this program is specific and therefore countervailable.

Excessive Exemptions under the Harbor Act

Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo

The Habor Act has been determined to be not countervailable; however, in this investigation, we determined that Dongbu received excessive exemptions under the Harbor Act. These exemptions included an exemption of harbor fees for a period of almost 70 years. Because the exemptions Dongbu received were excessive compared to the useful life of the constructed assets, we determined that this program is countervailable.

Exemption of Bond Requirement for Port Use at Asan Bay

Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim) (2006)   71 FR 32519 (6/06/06 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   70 FR 45689 (8/8/05-final);   Decision Memo
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);  67 FR 62102 (10/03/02-final);   Decision Memo
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  

The Government of Korea waived the bond requirement for exclusive use of a port facility for POSCO. This program meets the specificity requirements under section 771(5A)(D) of the Act, and is therefore countervailable. In addition, we determined that the GOK's waiver of the bond purchase requirement for the exclusive use of port berth #1 by POSCO confers a financial contribution under section 771(5)(D)(ii) of the Act, because the GOK foregoes collecting revenue that it normally would collect. We also determine that because the GOK had to repay the bonds at the end of the lease term, the bond purchase waiver is equivalent to an interest free loan for three years, the duration of the lease. For all these reasons, we determined that this program conferred a countervailable benefit.

Exemption of VAT on Imports of Anthracite Coal

Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final) not used
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  

Imports of anthracite coal are exemption from the VAT. Because POSCO imported anthracite coal, and because VAT is paid on imports of non-anthracite coal, we determined this program to be countervailable.

Government Equity Infusions in POSCO

Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim) (2006)   71 FR 32519 (6/06/06 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32519 (6/6/06-final);   Decision Memo
Certain Steel (1991) 57 FR 57763 (12/7/92-prelim);   58 FR 37339 (7/9/93-final);   Amended
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo;   Amended
Steel Flat-Rolled Products (1984) 49 FR 36542 (9/18/84-prelim);   49 FR 47288 (12/3/84-final)

The Pohang Iron and Steel Company (POSCO) was determined to be unequityworthy in 1978 and 1980 when the Government of Korea provided it with equity. We found these equity infusions to be countervailable because government equity infusions bestow a countervailable benefit when they occur on terms inconsistent with commercial considerations.

Infrastructure Investments at Harbor Facilities

Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim) (2006)   71 FR 32519 (6/06/06 - Final);   Decision Memo
Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Cut-to-Length Steel Plate (2005)   72 FR 10163 (3/07/07 - Prelim);   72 FR 38565 (7/13/07 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32519 (6/6/06-final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   70 FR 45689 (8/8/05-final);   Decision Memo
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo;   Amended
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  
Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36546 (9/18/84-prelim);   49 FR 47292 (12/3/84-final)
Steel Plate in Coils (1997) 63 FR 47257 (9/4/98-prelim);   64 FR 15533 (3/31/99-final)
Steel Sheet & Strip in Coils (1997) 63 FR 63892 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

The Korean government's infrastructure development at Kwangyang Bay constituted a specific and countervailable subsidy to Pohang Iron and Steel Company's (POSCO) because POSCO was found to be the predominant user of the infrastructure.

"National Subsidy" to Sammi

Steel Sheet & Strip in Coils (1997) 63 FR 63891 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

Sammi Steel Co., Ltd. received a national subsidy from the Government of Korea which the Department of Commerce considers to be a grant. This program is countervailable because this subsidy, or grant, was bestowed only to Sammi, and is therefore specific.

POSCO's Provision of Steel Inputs for Less Than Adequate Remuneration

Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended not used
Stainless Sheet & Strip in Coils (2000) 67 FR 57399 (9/10/02-prelim);   68 FR 13267 (3/19/03-final & partial rescission);   Decision Memo
Stainless Sheet & Strip in Coils (11/98-12/99) 66 FR 47008 (9/10/01-prelim);   66 FR 1964 (01/15/02-final & partial rescission);   Decision Memo;   Amended

The Government of Korea through its ownership and control of POSCO set prices of steel inputs used by the Korean steel industry at prices at less than adequate remuneration. POSCO set different prices for its steel depending on whether the input was to be used to produce products for domestic consumption or export consumption. We determined that the prices charged by POSCO were for less than adequate remuneration. Therefore, we determined that the provision of steel by POSCO was for less than adequate remuneration and was therefore countervailable.

Price Discount Land Purchase at Asan Bay

Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   70 FR 45689 (8/8/05-final);   Decision Memo
Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final) not used
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  
Structural Steel Beams (SR) (Expedited review - no prelim);   70 FR 53167 (9/7/05-final);   Decision Memo
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo

The Asan Bay Industrial Site is a GOK constructed industrial estate. We determined that steel companies received price discounts on purchases at Asan Bay. In addition, the Government of Korea provided additional savings to the steel companies by exempting them from the registration tax, education tax, and the acquisition tax which would normally be paid on purchases of land. We determined, therefore, that this program was countervailable.

Purchase of Sammi Specialty Division for More than Adequate Remuneration

Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended
Steel Sheet & Strip in Coils (1997) 63 FR 63892 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

In February 1997, the Pohang Iron and Steel Company (POSCO) purchased the specialty steel bar and pipe division of Sammi for 719.4 billion won and became POSCO's Changwon facility. We determined that the actions of POSCO should be considered as an action of the Government of Korea because POSCO is a government-controlled company. It appears as though the purchase price agreed upon by POSCO and Sammi included money both for the assets that POSCO was purchasing and for the repayment of debt associated with these assets. We found that POSCO made this purchase for more than adequate remuneration, thereby conferring a countervailable benefit.

POSCO's Two-Tiered Pricing Structure to Domestic Customers

Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo;   Amended
Stainless Steel Cooking Ware (SR) (Expedited Review-no prelim);   64 FR 48374 (9/3/99-final)
Steel Sheet & Strip in Coils (1997) 63 FR 63897 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

POSCO maintains three different pricing systems which serve different markets: domestic prices in Korean won for products that will be consumed in Korea, direct export prices in U.S. dollars or Japanese yen, and local export prices in U.S. dollars. Local export prices are provided to those domestic customers who purchase steel for further processing into products that are exported. POSCO determines its domestic prices for hot-rolled stainless steel coil with reference to the price of imports. Since imports are subject to import duties, POSCO sets its domestic price in Korean won to compete with the duty-inclusive import price. However, for domestic customers purchasing hot-rolled stainless steel coil to be manufactured for export, POSCO sets the local export price at slightly below the duty-exclusive import price because such imports are eligible for duty drawback. This pricing scheme is an export subsidy because POSCO sets different prices for the identical product for domestic purchasers based upon that purchaser's anticipated export performance.

Research and Development Grants

Cut-to-Length Steel Plate (2005)   72 FR 10163 (3/07/07 - Prelim);   72 FR 38565 (7/13/07 - Final);   Decision Memo;   non-measurable benefit
Corrosion-Resistant Flat Products (2005)   72 FR 51602 (9/10/07 - Prelim);   73 FR 2444 (1/15/08 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   70 FR 45689 (8/8/05-final);   Decision Memo
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo;   Amended
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  
Stainless Sheet & Strip in Coils (2004) 71 FR 50886 (8/28/06-prelim);   not used
Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended not used
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo

The GOK, through MOCIE, provides research and development grants to support numerous projects pursuant to the Industrial Development Act, including technology for core materials, components, and engineering systems, and resource technology. We determined that the benefits received under this program were steel specifc and therefore countervailable.

Scrap Reserve Fund

Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final) not used
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final) not used
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);   not used
Structural Steel Beams (SR) (Expedited review - no prelim);   70 FR 53167 (9/7/05-final);   Decision Memo
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo

The Scrap Reserve Fund is administered by the Supply Administation, an agency that purchases certain industries' inputs to production and then makes the inputs available to producers on credit. Because the Scrap Reserve Fund is available only for a relatively limited number of materials and the use of steel scrap is largely limited to the steel industry, we determined that this program is specific and therefore countervailable.

SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" in the cases listed and during the periods reviewed based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed under the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.

Long-Term Lending Provided by the KDB and Other GOK-Owned Institutions

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] In the Preliminary Determination, we found that long-term loans issued by such GOK institutions as the KDB constitute a financial contribution within the meaning of section 771(5)(D)(i) of the Act and a benefit under section 771(5)(E) of the Act to the extent that interest payments on the government loans are lower than what would have been paid on comparable commercial loans. Regarding specificity, we find that long-term loans from the KDB are not de jure specific within the meaning of sections 771(5A)(D)(i) and (ii) of the Act because (1) they are not based on exportation, (2) they are not contingent on the use of domestic goods over imported goods, and (3) the legislation and/or regulations do not expressly limit access to the subsidy to an enterprise or industry, or groups thereof, as a matter of law. Pursuant to section 771(5A)(D)(iii)(I) and (II) of the Act, we find there is no evidence to indicate that the actual recipients of the KDB’s long-term loans are limited in number or that the pulp and paper industry is a predominant user. In the Preliminary Determination, we determined that KDB lending to the paper sector was specific in accordance with section 771(5A)(D)(iii)(III) of the Act because the paper sector received a disproportionate share of KDB loans between 1999 and 2005 when compared to the overall Korean Gross Domestic Product (GDP). . . . In this final determination, we modified our approach by dividing the pulp, paper, and wood sectors’ share of KDB lending to the manufacturing sector by the sectors’ share of manufacturing GDP. . . . In the instant investigation the facts of the case also include nominal usage data from the GOK indicating the amount of KDB loans outstanding, by industry, for years 1995 through 2005. We note officials from the Department verified the KDB lending data. . . . Based on our review of this information, we determine that the pulp and paper industry did not receive a disproportionate amount of KDB lending during the years 1995 through 2005. . . . We lack the data that would allow us to directly analyze whether loans issued by the KDB in 1993 and 1994 were de facto specific to the pulp and paper industry within the meaning of section 771(5A)(D)(iii)(III) of the Act. However, given our finding that the pulp and paper sector did not receive a disproportionate share of KDB loans in each year 1995 through 2005, we also determine that the paper sector did not receive a disproportionate share of KDB loans in 1993 and 1994.

Direction of Credit to the Pulp and Paper Sector

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] In the Preliminary Determination, we found that there was no GOK direction of credit specific to the paper industry that would provide a benefit during the POI. We explained that though the GOK exerted broad control over lending in Korea through 1998 that resulted in credit being directed specifically to such “strategic” sectors as the steel and semiconductor industries, the record evidence in the instant investigation was not sufficient to support a conclusion that the paper industry was likewise a “strategic” sector to which the GOK specifically directed credit. See Preliminary Determination, 72 FR at 17517.

We continue to find that there is not sufficient evidence to conclude that (1) for the period up through 1998, the GOK designated the paper industry as a “strategic” sector to which credit was specifically directed, and (2) for the period subsequent to 1998, the GOK had a policy favoring the paper industry or engaged in a pattern of practices to act upon that policy, thereby entrusting or directing private creditors to provide financial contributions to paper producers. We received comments from interested parties on this issue. See Comment 1.

Shinho Restructuring

Coated Free Sheet Paper (2005)   72 FR 17507 (4/09/07 - Prelim);   72 FR 609639 (10/25/07 - Final);   Decision Memo

[CFS Paper (2005)] As outlined in the Preliminary Determination, the Shinho Group experienced severe financial difficulties due to Korea’s financial crisis in 1997. See 72 FR at 17518. As a result, Shinho Paper and its creditors implemented financial restructuring or “workout” plans in 1998 and 2000 under the Corporate Restructuring Act (CRA) and in 2002 under the Corporate Restructuring and Promotion Act (CRPA). These “workout” plans included swaps of unsecured debt for equity and convertible bonds, conversions of convertible bonds to equity, extensions of debt maturities, reductions of interest obligations, and new loans. Ultimately, in 2004, Shinho Paper’s remaining unsecured debt was repackaged into a large syndicated loan, and Shinho Paper was sold to Aram Financial Service Inc., through a public bidding process. We determine that, through its participation in Shinho’s “workout” plans and the syndicated loan, the GOK provided Shinho Paper direct financial assistance from GOK-owned public lending institutions (i.e., GOK authorities) in order to assist Shinho Paper through its financial difficulties. With regard to Shinho Paper’s other creditors, we determine that there was no direction of credit to the paper industry during these periods. See the “Direction of Credit to the Pulp and Paper Sector” section of this decision memorandum. Further, the evidence on the record is insufficient to demonstrate the existence of a GOK policy to provide financial assistance to Shinho Paper or the existence of a GOK pattern of practices to do so. We thus determine that the GOK did not entrust or direct Shinho Paper’s non-GOK creditors to participate in financial restructuring plans and the syndicated loan. We therefore determine that, in participating in the various events of Shinho’s restructuring, these creditors (i.e., the non-GOK lenders) did not provide financial contributions to Shinho Paper within the meaning of sections 771(5)(B)(i) and (iii) of the Act and that, therefore, their actions are not countervailable. Furthermore, because these creditors were not entrusted or directed by the GOK, we determine that the participation by creditors other than GOK lending institutions is suitable for benchmark purposes in assessing whether Shinho Paper benefitted from the assistance provided by the GOK-owned public lending institutions.

GOK Entrustment or Direction of Debt Reductions

DRAMS (2004)   71 FR 46192 (8/11/06-prelim);   72 FR 7015 (2/14/07 - Final);   Decision Memo

The October and December CBOs

DRAMS (2004) 71 FR 46192 (8/11/06-prelim);  

The terms of the October CBO included a maximum cash buyout rate of 70% for unsecured loans and a fixed cash buyout rate of 96% for secured loans. In other words, the Creditors' Council established maximum early payment discounts of 30 percent and 4 percent on unsecured and secured loans, respectively. The Creditors' Council also established a target amount for repayment for the entire CBO, limitations on the amount of secured debt that would be repaid under the CBO, and a hierarchy of loans that were eligible for the CBO. We determined this program was not countervailable.

Tranche A of the Acquisition Financing for the Sale of the System IC Unit to MagnaChip

DRAMS (2004) 71 FR 46192 (8/11/06-prelim);  

Tranche A of the System IC acquisition financing involved the transfer of new loans received by Hynix and previously existing loans from Hynix to MagnaChip. No GOK entities participated in Tranche A financing. Instead, the banks that agreed to discount the Hynix debt that was transferred to MagnaChip were wholly-owned foreign banks or non-GOK entities. Absent GOK entrustment or direction to participate in Tranche A financing, any debt reductions provided by these creditors do not constitute a financial contribution and, therefore, are not countervailable.

Import Duty Reduction for Cutting Edge Products

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Permission for Hynix and SEC to Build in Restricted Areas

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Asan Bay Infrastructure Subsidies

Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  

We determined that no benefit was provided under this program. Therefore, this program was not countervailable.

Debt Forgiveness Provided to Sammi by KAMCO

Stainless Sheet & Strip in Coils (2001) 68 FR 53116 (9/9/03-prelim);   69 FR 2113 (1/14/04-final);   Decision Memo;   Amended

Sammi received debt forgiveness as part of a workout plan agreed to by Sammi's creditors while Sammi was under court receivership from March 18, 1997 until March 23, 2001. KAMCO, a government-owned entity, was Sammi's lead creditor during a portion of Sammi's time under court receivership. The typical return that KAMCO generated on its sale of Sammi's non-performing loans (NPLs) was similar to, and even slightly higher, than the typical return that KAMCO generates on its sale of NPLs. Furthremore, the debt forgiveness agreed to by KAMCO with respect to Sammi's workout plan was similar to the debt forgiveness agreed to with respect to other companies in court receivership where KAMCO was the lead creditor. Therefore, we find that KAMCO's debt forgiveness to Sammi is not specific within the meaning of Section 771(5A)(D)(iii) of the Act.

Equity Infusions into DongJin

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final)
Steel Flat-Rolled Products (1984) 49 FR 36545 (9/18/84-prelim);   49 FR 47291 (12/3/84-final)

DongJin was established on October 27, 1982 by POSCO. At the time of DongJin's formation, POSCO invested funds in order to provide cash for the purchase of the assets of Llssin Steel Company and working capital for DongJin's future operations. POSCO also guaranteed the notes of DongJin used for the purchase of Llssin's assets. Llssin Steel Company was a bankrupt company, owned and operated by the Korea Exchange Bank and the Commercial Bank of Korea. In accordance with Korean law, at the time of bankruptcy the courts foreclosed upon Llssin's assets and offered the assets for sale at public auction. Because there were no other bidders for the assets at the appraised value or above, the banks which were the highest bidders, purchased the assets at auction. These assets were then sold to DongJin for cash and notes. This transaction is not inconsistent with government terms because the government did not direct the banks to sell the assets on favorable terms. Also, the cash investment into a newly created subsidiary by a parent company, and the guaranteeing of the subsidiary's notes when it is still a "shell" organization, are normal business practices.

Exemption from Acquisition Tax in Rural Areas

Certain Steel (1991) 57 FR 57769 (12/7/92-prelim);   58 FR 37350 (7/9/93-final);   Amended
Stainless Steel Cooking Ware (SR) (Expedited Review-no prelim);   64 FR 48374 (9/3/99-final)

The Local Tax Act exempted firms from paying the acquisition tax on purchases of land, buildings and capital equipment at Kwangyang Bay Industrial Estate. This law was terminated in 1988, and because the tax exemption was nonrecurring, we found that there was no countervailable benefit.

Government Assistance for the Construction of POSCO's Integrated Steel Mill at Kwangyang Bay (Land Transfer)

Certain Steel (1991) 57 FR 57767 (12/7/92-prelim);   58 FR 37350 (7/9/93-final);   Amended
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo

The Pohang Iron and Steel Company (POSCO) acquired land for its Kwangyang facility through a process of land reclamation. POSCO obtained approval from the Government of Korea and paid the costs at market value for the purchased land. There is no evidence to suggest that the Government of Korea accorded POSCO with preferential treatment.

Government Infrastructure Investments at Kwangyang Bay Post-1991

Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo
Steel Sheet & Strip in Coils (1997) 63 FR 63889 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

The Government of Korea made the following infrastructure investments at Kwangyang Bay since 1991: construction of a road from Kwangyang to Jinwol, construction of a container terminal, and construction of the Jooam Dam. We determined that the Government's investments did not benefit a specific industry or industries and was therefore not countervailable.

Government Provision of Equity Into Daewoo Shipbuilding

Platform Jackets and Piles (1983)(1985) 50 FR 29462 (7/19/85-prelim);   51 FR 11783 (4/7/86-final)

The Korean Development Bank (KDB) provided equity to Daewoo Shipbuilding from 1978 through 1980 and in 1984. Government provision of equity does not, per se, confer a subsidy. We found that the KDB's equity infusions were made on the same terms as private investors, and therefore, were not countervailable.

RR&D Grants under the Korea New Iron & Steel Technology Research Association

Structural Steel Beams (SR) (Expedited review - no prelim);   70 FR 53167 (9/7/05-final);   Decision Memo

This association supports R&D projects through private and public contributions. If the research is deemed successful, then 50 percent of the GOK's contribution will be repaid. There is insufficient information on the record for the Department to determine whether this is a countervailable program.

Korea Development Bank Loans to Daewoo Shipbuilding

Platform Jackets and Piles (1983)(1985) 50 FR 29462 (7/19/85-prelim);   51 FR 11784 (4/7/86-final)

The Korean Development Bank (KDB) extended the grace period on repayment of the principal of a loan extended to Daewoo. Commercial banks in Korea typically tie the grace periods to the company's cash flow. Because the length of the KDB loans are not inconsistent with commercial considerations, these loans were found to be not countervailable.

Port Facility Fees

Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32519 (6/6/06-final);   Decision Memo
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final)
Corrosion-Resistant Flat Products (2004) 71 FR 53413 (9/11/06-prelim);  
Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Plate in Coils (1997) 63 FR 47257 (9/4/98-prelim);   64 FR 15536 (3/31/99-final)
Steel Sheet & Strip in Coils (1997) 63 FR 63893 (11/17/98-prelim);   64 FR 30636 (6/8/99-final)

Korea's Harbor Act prohibits a private company from owning certain types of infrastructure, such as ports. Under this Act, the company, upon completion of a port facility project, must deed ownership of the infrastructure to the government. Because a company must transfer to the government its infrastructure investment, the GOK, under Articles 17-3 and 17-4 of the Harbor Act, grants the company free usage of the facility and the right to collect fees from other users of the facility until the company recovers its investment cost. Once a company has recovered its cost of constructing the infrastructure, the company must pay the same usage fees as other users of the infrastructure facility. We determined that this program was not countervailable as it is available to any company within any industrial sector.

POSCO's Purchase of Domestic Iron Ore

Steel Flat-Rolled Products (1984) 49 FR 36542 (9/18/84-prelim);   49 FR 47292 (12/3/84-final)

The Government of Korea sets the prices on domestic iron ore, and POSCO, the only fully integrated steel mill in Korea, buys virtually all domestic iron ore production. Because POSCO pays VAT on its domestic iron ore purchases and because we found that no competitive benefit was received by POSCO through its purchases of domestic iron ore, we determined that no countervailable benefits were being provided.

Research and Development Aid for Anthracite Coal Technology

Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);  67 FR 62102 (10/03/02-final);   Decision Memo
Stainless Sheet & Strip in Coils (2004) 71 FR 50886 (8/28/06-prelim);   not used

This program refers to the project "Technology for Sintered Anthracite Coal" in the August 1996 report prepared by the Korea Iron and Steel Association (KOSA). This project was solely financed by POSCO from the company's own funds. Because the GOK did not provide any funds for this project, we determined that this program is not countervailable.

Subsidized Steel Inputs

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final)

No program description available.

Tax Reserves and Credits

Certain Steel (1991) 57 FR 57769 (12/7/92-prelim);   58 FR 37351 (7/9/93-final);   Amended

We found that tax programs such as reserve for technology development, reserve for investment, reserve for overseas investment loss, investment tax credit, reserve for business rationalization, and the legal reserve were not used by a wide variety of industries and were not selectively provided to the steel industry.

SUBSIDY PROGRAMS THAT HAVE NOT BEEN USED OR PROVIDED NO BENEFIT

When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

Fund for Industrial Technology Development

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Fund for Promotion of Defense Industry

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Fund for Promotion of Informatization

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Long-Term Usance Loans

DRAMS (1/01-6/02) 68 FR 16766 (4/7/03-prelim);   68 FR 37122 (6/23/03-final);   Decision Memo;   Amended not used

No program description available.

Anthracite Coal for Less than Adequate Remuneration

Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memo not used

This program is designed to support and maintain the domestic coal industry in Korea by managing anthracite and briquette prices and is administered by MOCIE and the Coal Industry Promotion Board (CIPB). POSCO was the only respondent to use anthracite coal. However, during the POI, POSCO used only imported anthracite coal and thus did not use this program. Based on the fact that POSCO had no purchases of domestic anthracite coal, we determine that POSCO did not use this program during the POI.

Financial and Technical Assistance for Raw Material Purchases

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36544 (9/18/84-prelim);   49 FR 47292 (12/3/84-final) not used

Under the Iron and Steel Promotion Act, financial and technical assistance to purchase raw materials is authorized.

Grants to Dongbu

Cold-Rolled Carbon Flat Products (2000) 67 FR 9685 (03/04/02-prelim);   67 FR 62102 (10/03/02-final);   Decision Memonot used

These grants equaled less than 0.5 percent of Dongbu's sales in 1996. Therefore, because no benefit was conferred to Dongbu from these grants during the period of investigation, we determined that this program was not used.

Highly Advanced National Project Fund

Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final) not used

No program description available.

Mining Investment Reserve Funds Under Article 95 of the TERCL

Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo not used

No program description available.

Steel Campaign for the 21st Century

Carbon Steel Plate (2004) 71 FR 11397 (3/7/06-prelim);   71 FR 38861 (7/10/06-final) not used
Carbon Steel Plate (1998) 64 FR 40445 (6/26/99-prelim);   64 FR 73176 (12/29/99-final) not used
Structural Steel Beams (1998) 64 FR 69731 (12/14/99-prelim);   65 FR 41051 (7/3/00-final);   Decision Memo not used

No program description available.

Tax Incentives for Businesses Moving to a Provincial Area

Industrial Belts (1987) 53 FR 48675 (12/2/88-prelim);   53 FR 15516 (4/18/89-final) not used

Manufacturers, producers, and exporters of industrial belts in Korea may benefit from a program whereby companies located in free export zones receive certain tax exemptions.

Tax Incentive for a Factory Located in an Agricultural and Industrial Area

Certain Steel (1991) 57 FR 57770 (12/7/92-prelim);   58 FR 37351 (7/9/93-final);   Amended not used

No program description available.

SUBSIDY PROGRAMS DETERMINED NOT TO EXIST

The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that, while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.

Coal Import Funds

Steel Flat-Rolled Products (1984) 49 FR 36544 (9/18/84-prelim);   49 FR 47293 (12/3/84-final)

The Government of Korea does not subsidize the importation of coal through a specific fund.

Import Duty Reductions or Exemptions for Raw Materials

Steel Flat-Rolled Products (1984) 49 FR 36544 (9/18/84-prelim);   49 FR 47293 (12/3/84-final)

No program exists wherein producers or exporters receive reductions or exemptions of import duties on iron ore and coking coal.

Insurance Benefits

Certain Steel (1991) 57 FR 57770 (12/7/92-prelim);   58 FR 37351 (7/9/93-final);   Amended

No program description available.

Joint Facilities for Industrial Complexes Scheme

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36542 (9/18/84-prelim);   49 FR 47293 (12/3/84-final)

The Government of Korea planned to provide funding for joint facilities in industrial complexes, and the steel industry was one of the industries targeted for such funding. In 1982, the proposed project was canceled due to lack of funding.

Preferential Port Charges-Iron and Steel Rehabilitation Order

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Certain Steel (1991) 57 FR 57770 (12/7/92-prelim);   58 FR 37351 (7/9/93-final);   Amended

No program description available.

Preferential Utility Rates-Iron and Steel Rehabilitation Order

Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim) (2006)   71 FR 32519 (6/06/06 - Final);   Decision Memo
Carbon Steel Plate (SR) (Expedited review - no prelim);   71 FR 32519 (6/6/06-final);   Decision Memo
Certain Steel (1991) 57 FR 57770 (12/7/92-prelim);   58 FR 37351 (7/9/93-final);   Amended
Cold-Rolled & Corrosion-Resistant Flat Products (SR) (Expedited Review-no prelim);   65 FR 18973 (4/10/00-final);   Decision Memo
Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36542 (9/18/84-prelim);   49 FR 47292 (12/3/84-final)

No program description available.

Steel Industry Development Scheme

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36544 (9/18/84-prelim);   49 FR 47293 (12/3/84-final)

No such scheme exists wherein the Korean Ministry of Trade and Industry sponsors a 210 billion won expansion project belonging to POSCO.

Wage Controls

Oil Country Tubular Goods (1983) 49 FR 35836 (9/12/84-prelim);   49 FR 46776 (11/28/84-final) not used
Steel Flat-Rolled Products (1984) 49 FR 36544 (9/18/84-prelim);   49 FR 47293 (12/3/84-final)

The wages for workers of government-run firms such as POSCO and DongJin are comparable to the rates paid by other steel manufacturers.

SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED

The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.

No programs listed.