GENEVA, June 17: The World Trade Organization on Friday upheld a South Korean complaint against European Union tariffs that hit microchip giant Hynix Semiconductor. A WTO dispute panel said Brussels should fall into line with global trade rules and drop the duties against the world’s fourth largest memory chip-maker.
The EU had claimed government aid for Hynix was a breach of international trade accords because it allowed the company to compete unfairly with its European counterparts.
Hynix was on the edge of bankruptcy in 2001 before being saved by a 3.25 trillion won ($3.21bn) bailout arranged by South Korean creditor banks, some controlled by the government.
The EU had claimed the rescue package amounted to illegal state subsidies while Hynix denied any government role in its bailout, which Seoul also said was made on a purely commercial basis.
The EU slapped anti-dumping tariffs of 34.8 per cent on Hynix products in 2003.—AFP
