S. Korea Extends Anti-dumping Duties on Kraft Paper

South Korea will extend its anti-dumping duties on foreign made kraft paper by three years to protect local manufacturers from imports, the government said on Apr. 9, 2012.

The Ministry of Strategy and Finance said it will slap punitive duties of 4.03 percent to 10.79 percent on kraft paper products made in Russia, the United States, Indonesia, China and Canada, after investigations showed unfair price cutting of the packaging material.

The anti-dumping duties will be levied for three years up till April 9, 2015, it said.

The paper is a common packaging material used for cement, flour, sugar and animal feed, with the domestic market at 100 billion won (US$87.8 million).

South Korea levied punitive duties on kraft paper from the same countries for three years from October 2008.

The Korea Trade Commission (KTC), however, carried out additional investigations in the past few months to see if foreign manufacturers were still unfairly undercutting prices. The finance ministry's latest decision is based on recommendations made by the KTC.