S. Korea starts antidumping probe into Japanese chemical firms

SEOUL, Jan. 21 (Yonhap) -- South Korea commenced a formal antidumping
investigation Thursday into two Japanese firms that manufacture the chemical
compound propylene oxide, the country's trade commission said.
The Korea Trade Commission (KTC) said the investigation was started because of
complaints filed by SKC Ltd., a local film and petrochemical firm.
The South Korean firm complained that chemical imports from Nihon Oxirane Co. and
Toyota Tsusho Corp. had been sold at unfairly low prices, hurting its market
share and profits.
"We have determined there is sufficient cause and evidence behind complaints
raised by a local manufacturer," the commission under the Ministry of Knowledge
Economy said in a press release.
Propylene oxide is a colorless, volatile liquid compound used mostly to make
polyurethane plastics. It is also used as a clearing agent for preparing
biological samples for electron microscopes.
The local market stood at 425.4 billion won (US$373.8 million) in the first nine
months of 2009, with 73.8 percent or 314.1 billion worth manufactured locally,
and the rest coming from abroad.
SKC is the only manufacturer of the chemical, although KPX Chemical and Korea
BASF Co. are importers.
Under KTC rules, antidumping probes, which can last for a maximum of 10 months,
include on-site inspections. The commission will make a ruling after the probe is
completed.
yonngong@yna.co.kr
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