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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, South Korea — The Korean government and Hyundai Steel have once again prevailed in their legal battle against U.S. countervailing duties on electricity rates.
On August 19 (local time), the U.S. Court of International Trade (CIT) overturned and remanded the U.S. Department of Commerce’s redetermination related to Korea’s electricity pricing, ruling in favor of the Korean government and Hyundai Steel. Countervailing duties are punitive tariffs imposed when a trading partner is deemed to have benefited from subsidies or incentives that distort fair trade.
This marks the second CIT victory for Korea in the Hyundai Steel case (duty rate: 1.08%), following a first ruling in December 2023. Earlier this month, POSCO (duty rate: 0.87%) also secured a favorable CIT decision.
The Department of Commerce had attempted to justify its position by arguing that Korea’s steel industry disproportionately benefits from electricity pricing, citing usage ratios among top industries. However, the CIT found that the Department repeated its earlier logic without addressing the court’s prior instructions, and failed to provide a meaningful basis for its industry “grouping” methodology.
Asa result, the CIT issued a second remand, requiring the Department of Commerce to revise its determination on specificity within 90 days.
This latest decision strengthens Korea’s position in ongoing trade remedy disputes, underscoring that the U.S. government must adhere to stricter standards when imposing countervailing duties.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
