1. On April 7, 2008 (local time), the EU Council adopted a final decision to terminate duties on Hynix DRAMs, 
which had been imposed since April 2003. This decision is set to be effective on the day after the publication 
in the Official Journal of the European Union (April 9 expected publication date). Countervailing duties will be 
repealed as of December 31, 2007. 

ᄋThe countervailing duties paid from December 31, 2007 shall be repaid or remitted to the effective date of 
the decision

2. The EU had imposed a 34.8% duty on the Hynix DRAMs, ruling that a 2001 restructuring program for Hynix 
constituted a subsidy by the Korean government. While the countervailing duty was lowered to 32.9% after 
the adoption of the WTO panel report in favor of Korea, an interim review by the EU found that a 2002 
restructuring program for Hynix also constituted subsidies and continued to impose the duties.

3. Since exports of the Hynix DRAMs had virtually ceased due to tariffs, the EU’s decision to repeal the 
countervailing duties would allow Hynix to restore the market share of the chips in the EU back to the level 
attained before the duties were imposed. Further, as the first of its kind, the EU’s decision is expected to set 
a positive precedent for other countries such as the U.S. and Japan that have imposed similar tariffs on the 
Hynix DRAMs.

ᄋDuring the imposition of tariffs by the EU, Hynix saw a dramatic drop in the export of the Korean DRAMs to 
the EU from US$250 million in 2002 to US$370,000 in 2007. While Hynix sought to maintain its market share 
in the EU with exports of products manufactured from the US, China and other foreign countries, their market 
share dropped from 16% in 2001 to 12.8% in 2006 

* In the case of the U.S., the tariff was reduced to 23.78% as a result of an annual review in March 2008. A 
sunset review is set for the second half of 2008 to determine whether the tariff will be lifted 

* In the case of Japan, the WTO adopted a panel report in favor of on December 17, 2007 to resolve the 
conflict between and on the Hynix DRAM. To comply with the WTO’s decision, Japan is negotiating with Korea 
regarding the necessary steps and the proper compliance period

4. In order to bring about an end to EU’s tariffs on Hynix DRAM chips, MOFAT has worked in close cooperation 
with businesses, while continuing to maintain that the Hynix restructuring program was not a subsidy. As 
MOFAT had made continual requests to the EU for swift removal of the tariff, the decision by EU is seen as 
the result of multi-track diplomatic efforts by the Korean government in cooperation with businesses.

ᄋFor this purpose, there have been several trade ministerial meetings between Kim Jong-hoon and Peter 
Mandelson, governmental cooperation through dispatch of the MOFAT task force of trade remedy, delivery of 
government position papers, and various multilateral efforts. 

* Korea-EU trade ministerial meetings were held on May 6, June 14, and November 21, 2007; Korea-EU 
trade ministerial teleconference was held on April 16, 2007; correspondence from the Minister for Trade was 
delivered on April 17 and May 9, 2007 

* The MOFAT task force of trade remedy was dispatched on four occasions: April 19, July 20, September 20 to 
21, November 20 to 22, 2007; correspondence from the head of task force of trade remedy was delivered on 
May 4, 2007; government position papers were delivered on July 27, 2007 and January 7, 2008 

* The Hynix issue was discussed in the Korea-EU joint committee and request for cooperation during the 
June 1, 2007 meeting between MOFAT’s Deputy Minister for Trade and EU’s Director General for Trade as 
well.

5. MOFAT will continually strive to prevent foreign countries from imposing unreasonable trade remedy 
measures that may harm Korean business within foreign markets.

                                                        Spokesperson of MOFAT

* unofficial translation