South Korea Investigates Cheap Hydrocarbon Resin Imports from China

South Korea has initiated an anti-dumping investigation into hydrocarbon resin imports from China and Taiwan, following a complaint from local manufacturer Kolon Industries Inc. The Korea Trade Commission, part of the Ministry of Trade, Industry and Energy, is examining allegations that low-priced imports from these countries are harming the domestic industry. Reports indicate that the investigation targets four Chinese and three Taiwanese companies, with Kolon Industries claiming dumping margins of 15.52% and 18.52%, respectively. Hydrocarbon resin, a by-product of naphtha processing, is essential in various applications, including paints and adhesives. It plays a crucial role in both industrial and consumer goods. Currently, South Korea imposes an 8% basic tariff on hydrocarbon resin imports. However, due to a free trade agreement with China, products from that country enter the South Korean market duty-free, complicating the local industry's competitive landscape. The Korea Trade Commission has acknowledged the significant impact of these imports on the operating profit margins of South Korean companies. The commission stated that the damage to the domestic sector cannot be overlooked, given the current economic conditions. The investigation is set to proceed with a preliminary determination expected within five months, followed by a final conclusion within an additional seven months. This move underscores South Korea's commitment to protecting its local industries from unfair trade practices.