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Japan keeps 9% tariff on Hynix memory chips

Hynix Semiconductor Inc expressed disappointment yesterday that Japan has decided to maintain punitive tariffs on its computer memory chips, saying it would ask the South Korean government to consider retaliatory measures.

Hynix, the world’s second-largest manufacturer of dynamic random access memory chips, called Japan’s decision “very regrettable.”

Japan said on Aug. 22 that, pending Cabinet approval, it would reduce its punitive tariff imposed on Hynix DRAM chips in 2006 from 27.2 percent to 9.1 percent, after the WTO ordered the duty be recalculated by today.

Japan’s Cabinet approved the reduction last week. Hynix said the decision called for the tariffs to stay in place until the end of 2010.

In a statement, Hynix said it “will explore all possible countermeasures in cooperation with the South Korean government to make the Japanese government completely revoke the punitive tariffs at an early date.”

Hynix also said it “will ask the South Korean government to take immediate countermeasures, including the consideration of retaliatory trade measures against Japanese products,” and to set up a panel under WTO dispute settlement procedures.

Kang Nam-hoon, a spokesman of South Korea’s Ministry of Knowledge Economy, was not available for comment yesterday.

Since 2003, the US, the EU and Japan have all imposed duties on Hynix DRAM chips because of what they called unfair South Korean government support for the company when it twice nearly collapsed under debt in 2001 and 2002.

South Korea fought the tariffs at the WTO. The Geneva, Switzerland-based global trade arbiter determined that some of Seoul’s financial support for Hynix was illegal. The global body upheld Washington’s 44.71 percent tariff, but called for the EU and Japan to recalculate theirs.

The EU, which levied its tariffs on Hynix in 2003, said in April it was repealing duties of more than 30 percent effective to the end of last year.

The US Commerce Department said earlier this month that it has “preliminarily” decided to end its duties against Hynix.

DRAM chips are mostly used in personal computers.

Icheon-based Hynix in July reported a loss in the quarter ended June 30, its third straight quarter of red ink, largely because of plunging chip prices.
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