Korea’s Introduction of Anti-circumvention Inquiry in the Antidumping Investigation

Anti-dumping investigations (AD) have been used against ‘unfair’ imports from third countries. As China has been overwhelmingly subject to antidumping measures by various countries including the United States, EU and Japan, many Chinese companies now move their production facilities to other countries including Vietnam and Malaysia to avoid such AD duties. Against this background, more countries are using anticircumvention inquiry against such practices. Korea also joined this phenomenon by amending the Customs Act and other relevant rules to introduce anti-circumvention inquiry, which will enter into force on 1 January 2025. However, the definition of ‘circumvention’ under Korean law is much narrower than other countries’ systems, and therefore, Korean law may need to be updated to expand the definition of ‘circumvention’ in line with other jurisdictions.