1. The Government of the People's Republic of China has decided to open anti-dumping investigations on 
Toluene Diisocyanate (TDI) imports from Korea, Japan and the US in accordance with requests made by 
Chinese industries. The investigations began on May 22, 2002.

-   Companies in Korea subject to investigation: Korea Fine Chemical, DC Chemical, and BASF Korea

-   Requested dumping margin rate for Korea: 5.34% (Japan: 49.08% and the US: 17.93%)

-   China is Korea's 2nd largest exporting market for TDI. In 2001, Korea's total TDI exports to China 
amounted to 23,184 tons, worth US$ 3.52 million. (TDI exports to China made up 28% of Korea's total TDI 
exports, worth 26% of the total value)

 
2. Given the dumping margin rates imposed by China, this will mainly affect Japan and the US. However, the 
Korean Government is concerned that the recent increase in anti-dumping measures taken by China may act 
as barriers to Korea-China trade relations. Accordingly, the Korean Government will consult with the Chinese 
side to request that China's anti-dumping investigation on TDI be carried out in a fair and transparent 
manner, consistent with WTO regulations.       

-   On May 10, 2002, in a meeting with China's Minister Shi Guangshen of Foreign Trade and Economic 
Affairs, Korea's Minister Hwang Doo-yun for Trade requested that China refrain from taking anti-dumping 
measures. Korea will continuously seek mutually satisfactory resolutions to maintain and develop stable 
trade relations through bilateral consultations.

                                                                  Spokesperson of MOFAT

* unofficial translation