LONDON Hynix Semiconductor Inc. condemned petitions by Elpida Memory Inc. and Micron Japan Ltd. for the imposition of countervailing duties on Hynix DRAMs made in South Korea and imported into Japan.
Hynix defended its position in combative language and characterized proposed duties on its DRAMs by the Japanese government as "hypocritical" and a potential source of anti-Japanese emotion and "social and diplomatic troubles".
Regarding issues surrounding Hynix's debt restructuring, which Hynix described as a key basis of the petition, company executives added: "The creditors simply made commercially reasonable decisions based on objective data and information available. Indeed, Hynix's Korean creditors acted no differently than foreign creditors facing the same choices."
Hynix executives added that a dumping investigation was unwarranted because the DRAM market has improved and that the legitimacy of imposing countervailing duties by the U.S. and European Union was being reviewed by the World Trade Organization.
Hynix said the proposed duties were an attempt to harass Hynix, which has provided Japan's electronics equipment industry with DRAMs.
Hynix went on to argue that, because the Japanese government has supported weak domestic banks to stabilize its financial sector, the allegations of illegal subsidy that had been raised against Hynix could also apply to Japanese companies.
Citing government support for Japanese banks, Hynix said the dumping charges were tantamount to the pot calling the kettle "black." "It therefore makes little sense for Japan to find a subsidy from this investigation, since it would be extremely hypocritical for Japan to criticize Korea for taking the same actions as Japan," Hynix said.
Countervailing duties on Hynix DRAMs, the Korean manufacturer added, could also damage Japan's DRAM-consuming industries by worsening the supply-demand imbalance.