1. On November 2, 2002, Micron Technology, a US company, filed a suit with the US Department of 
Commerce to impose countervailing duties on Korean DRAM semiconductor products. Micron Technology 
claims that Korea's major DRAM companies, Hynix and Samsung Electronics, have received government 
subsidies in violation of the WTO agreements.

 
2. Specifically, Micron Technology claims in its petition to the Department of Commerce, that the Korean 
Government has provided Korean DRAM producers with tax-reductions since the financial crisis. It also 
claims that the Korean Government allowed several of those creditor financial institutions in which it was the 
largest shareholder, to provide government subsidies to DRAM producers in the form of: write-offs, debt-for-
equity swaps, rollover of loans, and interest rate reductions. In this regard, the suit states that the Korean 
Government has violated Articles 1 and 2 of the WTO Agreement.

 
3. The US Department of Commerce will decide upon whether to hold an investigation on this matter within 
20 days of the date the suit was filed. The US International Trade Commission will make its preliminary 
determination within 45 days.

 
4. The Korean Government will have bilateral consultations with the US at the earliest possible date, in 
accordance with Article 12.1 of the WTO Agreement. Furthermore, it will make its utmost effort to minimize 
any injury to Korean industries that may arise from this suit.

                                                             Spokesperson of MOFAT

* unofficial translation