[Alpha Biz= Kim Jisun] Concerns are mounting in South Korea’s power equipment industry as the United States applies unpredictable anti-dumping duty rates on Korean-made ultra-high voltage (UHV) transformers, adding to trade uncertainty following already high tariffs on steel and aluminum.
According to industry sources on Wednesday, the U.S. Department of Commerce recently released preliminary results of its annual anti-dumping review covering UHV transformers exported between August 2023 and July 2024 by four Korean manufacturers: Hyosung Heavy Industries, HD Hyundai Electric, LS Electric, and Iljin Electric.
Among companies individually reviewed, HD Hyundai Electric maintained a 0% duty rate, while Iljin Electric saw its rate reduced to 0% from 16.8%. Outcomes varied for firms excluded from the individual review. LS Electric retained its previous 16.87% rate, while Hyosung Heavy Industries, which had previously faced 0%, was newly assigned a 4.32% duty.
Industry officials said the results have fueled confusion, noting that the U.S. Department of Commerce has typically applied the weighted average dumping margin of reviewed firms to those not individually examined. Under that standard, companies excluded from the review would also have been expected to receive a 0% rate.
The uncertainty is particularly concerning as the next anti-dumping review, covering exports from August 2024 to July 2025, will include a period when Korean shipments to North America began accelerating. According to the Korea Customs Service, South Korea’s UHV transformer exports to the U.S. reached a record $738.3 million (about 1.09 trillion won) last year and are projected to rise to around 1.5 trillion won this year.
Companies plan to seek reconsideration of the preliminary ruling. LS Electric said it intends to submit a formal opinion challenging the decision and may consider legal action if a reasonable adjustment is not reached. Hyosung Heavy Industries also said it would actively participate in the explanation and review process.
Industry observers warned that inconsistent application of anti-dumping standards could pose a significant burden on Korean exporters at a time when U.S. demand for power infrastructure—driven by data centers, artificial intelligence, and grid upgrades—is expected to surge in the coming years.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
