Chinese Optical Fiber and Thai Copper Tubes Found to Be Dumped... Trade Commission Recommends Tariffs

Record Number of Domestic Industry Investigation Requests Amid Surge in Low-Priced Imports
Trade Commission Vows to "Strengthen Fair Trade Order"

The Trade Commission has acknowledged the existence of dumping and the resulting damage to domestic industries regarding single-mode optical fibers from China and seamless copper tubes from Thailand, and has recommended to the Ministry of Economy and Finance the imposition of anti-dumping duties.

On January 22, during its 468th meeting, the Trade Commission announced a final affirmative determination in the dumping investigation of Chinese single-mode optical fibers, stating that "dumped imports have caused material injury to the domestic industry." Single-mode optical fiber is a cylindrical dielectric waveguide made by melting glass-based preforms at high temperatures, and serves as a raw material for optical cables used in telephones, the internet, and cable TV. The Trade Commission has recommended to the Minister of Economy and Finance the imposition of a 43.35% anti-dumping duty on these products for the next five years. A provisional duty at the same rate has already been imposed on these products since September of last year.

Seamless copper tubes from Thailand also received a preliminary affirmative determination, as the preliminary investigation recognized evidence of dumping and injury to the domestic industry. Copper tubes, known for their excellent thermal conductivity, are used in home appliances such as air conditioners and refrigerators, as well as in industrial heat exchangers. During the main investigation period, the Trade Commission recommended the imposition of provisional anti-dumping duties of 3.64% and 8.41% on suppliers such as Hong Kong Hailiang and Fine Metal, respectively, to prevent injury. The final determination is scheduled for June.

The Trade Commission also reported the initiation of two new investigations: a second sunset review on Chinese printing plate products for photoengraving, and a patent infringement case involving battery packs for automobiles. The battery pack case involves an investigation into unfair trade practices related to patent infringement, reflecting the growing number of patent disputes among global companies and the increasingly competitive landscape in the field of intellectual property.

Meanwhile, the Trade Investigation Office reported on the results of last year's investigations into unfair trade practices such as dumping and intellectual property infringement. Due to prolonged global oversupply and low growth, the number of applications for dumping investigations by domestic industries reached a record high of 13 last year, more than double the number in 2021. Of all investigation requests, steel and chemical products accounted for 10 cases, and Chinese products were the most frequent, with 9 cases.

Last year, the Trade Commission completed 9 out of a total of 22 investigations and ultimately implemented anti-dumping duties or price undertakings on 8 items. As of the end of last year, anti-dumping measures had been expanded to 28 cases across 15 countries.

The scale of cases is also increasing. The average domestic market size of steel and chemical dumping cases grew more than tenfold, from 150.3 billion won in 2021 to 1.8657 trillion won in 2024. The Trade Commission assessed that "the increasing number of stakeholders, including producers, importers, and consumers, is making investigations more complex."

Looking ahead, the Trade Commission plans to expand the scope of anti-circumvention investigations to include assembly and processing in third countries, establish a foundation for countervailing duty investigations, and strengthen international cooperation, such as resuming Korea-U.S. technical consultations on trade remedies. In the area of patent infringement, the Commission intends to revise investigation standards and strengthen systems for monitoring supply chain impacts, in response to the growing number of disputes involving standard-essential patents.