South Korea Names Formosa Plastics Among 4 Firms, Accuses Them of Dumping and Impacting Supply Chain, Proposes 38.89% Anti-Dumping Tax

South Korea's trade regulatory body announced on the 20th that after an investigation, it has found that imports of solid sodium hydroxide from China and Taiwan have caused substantial harm to domestic industries. The body has proposed to the Ministry of Economy and Finance to impose anti-dumping taxes on relevant products from these regions. According to local media reports, including the Central Daily News, South Korea's Ministry of Trade, Industry and Resources stated that the Korea Trade Commission (KTC) has already made a formal decision to propose that the government impose anti-dumping taxes ranging from 3.66% to 22.21% on three Chinese exporters. Additionally, Taiwan's Formosa Plastics may face a tax rate of up to 38.89%. The three Chinese companies named are Sky Impex, Dongrui, and Unilion.

The product in question, solid sodium hydroxide, is commonly known as caustic soda or liquid alkali in the market. It is a key basic raw material widely used in various industrial manufacturing sectors, often seen in the chemical industry. It is used in the manufacture of soaps and detergents, as a pH adjuster, and in the processing and refining of fibers, pulp, and paper.

Facing a maximum tax rate of 38.89%, Formosa Plastics is the highest taxed entity in this decision. This proposal will be subject to final review by the Ministry of Economy and Finance, and if confirmed, the implementation details will be announced separately.

In addition to the anti-dumping ruling on sodium hydroxide, the Korea Trade Commission has also launched an independent trade remedy investigation targeting China's printing plate materials. The investigation is based on reports that Chinese manufacturers are allegedly dumping planar printing and plate-making photosensitive materials in the South Korean market at prices below reasonable levels.

The Korea Trade Commission stated that the investigation into China's printing plate materials for alleged dumping has begun, with a final ruling expected in October.