Seoul considers renewing anti-dumping measures on Malay chipboard

27/11/2011 12:00 - 375 Views

South Korea is considering extending anti-dumping measures against particle board imports from Malaysia and Thailand to protect the local industry, the government said Thursday.

The decision came at a Korea Trade Commission (KTC) meeting held late Wednesday at the request of the Korea Wood Panel Association, according to the Ministry of Knowledge Economy.

Particle board imports from the two Southeast Asian countries have been subject to an additional 7.67 percent tariff from April 2009, which will continue until April 2012. The material, also called chipboard, is manufactured from wood chips and sawdust mixed with glue and pressed into boards, which are mainly used in furniture-making.

"The Korea Wood Panel Association requested an extension of the anti-dumping measures, claiming the imports may still inflict serious damage on the local industry once the ongoing measures are terminated," the ministry said in a press release.

The trade commission, according to the ministry, agreed there is a possibility of damage to the local market and decided to begin an investigation into the matter.

The South Korean association of wood panel manufacturers is claiming that Malaysian and Thai exporters are undercutting their prices by an average 20 percent.

Thai and Malaysian chipboard imports currently make up about 36 percent of the South Korean market, which stood at 316.5 billion won (US$275 million) in 2010.

Source: english.yonhapnews.co.kr