The Korea Trade Commission, under the Ministry of Trade, Industry and Energy, launched the investigation after Kolon Industries, a chemical and clothing manufacturer, alleged dumping rates of 15.52 percent for Chinese firms and 18.52 percent for Taiwanese companies. Petroleum resin, a byproduct of naphtha cracking, is widely used in industrial intermediates and consumer goods.
"Based on the decline in operating profit and margin in the domestic industry's internal sales sector, we judge that the harm to the domestic industry is not insignificant," the Trade Commission said, justifying the initiation of the probe.
The commission is expected to make a preliminary ruling within five months and a final determination within seven months of the preliminary decision. While Korea typically applies an 8 percent tariff on petroleum resin imports, Chinese products currently enter duty-free under the Korea-China Free Trade Agreement.
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