How to Respond to Antidumping Duties? Korea, United States, and the Rest of the World.

Abstract

This study examines the response of Korean steel firms after being assessed antidumping duties in the United States. The U.S. market represents the second largest export market for Korea (after China), but increased liberalization in the Korean economy since the 1997 financial crisis has strengthened the independence and competitiveness of certain industries and the economy as a whole. Multinational Korean steel firms have encountered highly politicized protection in the U.S. and have had to adjust their strategies accordingly. This study examines traditional alternatives to counter antidumping and other forms of protectionism before reviewing export trade data in affected product groups. The data suggests that there is a positive, yet insignificant, relationship between U.S. antidumping duties and Korean steel exports to an alternative, major export market (notably China) in the year of the affirmative antidumping determination.