Korean Legislations and Related Legal Instruments in the WTO Anti-Subsidy Jurisprudence

Abstract

The purpose of this note is to survey certain Korean legislations the WTO compatibility of which were tested in the recent WTO anti-subsidy cases involving Korea and Hynix. The Hynix proceedings originated from the imposition by the U.S. Department of Commerce of countervailing duties on Hynix DRAMS on the basis that the Government of Korea had subsidized the chipmaker in contravention of

Koreas international obligations. In its final published determination, the DOC considered various Korean legislations pursuant to which it determined the Korean government could entrust or direct Hynixs lenders and the banking sector of Korea more in general to provide preferential financing

aimed at Hynix. The note critically appraises the DOC findings on each of the legislations and the Panel and, where appropriate, Appellate Body treatment of them in the subsequent WTO dispute settlement context. In addition to the legislations involved, the note probes certain legal instruments

considered by the DOC as proof of GOK direction or entrustment involving Hynixs creditors. The note ends with certain policy suggestions in connection with the legal instruments.