On April 7th, 2008 the Council of the European Union formally adopted a decision to lift countervailing duties on imports of dynamic random access memory chips from Korea manufactured by Hynix Semiconductor Inc.
Hynix management greeted the Council?s action with praise and a degree
"We commend the Council for taking the right course of action in this
matter," said Min Goo Choi, a Senior Vice President at the company.
"For five years Hynix and the Government of Korea have fought the
imposition of these duties before the European Commission and at the
World Trade Organization and we are happy that we have finally secured
their just termination," he added.
In 2003 the Council determined that the Government of Korea had
illegally subsidized Hynix by allegedly directing banks to engage in a
non-commercial financial restructuring of the company. The Council?s
decision was overturned by the World Trade Organization in 2005 and
Hynix continued to press its case within the European court and before
the European Commission.
As importantly, during this time, Hynix?s financial performance
dramatically improved. Hynix?s stock price increased by nearly 514%
percent over the 2003 ? 2007 period and the company re-emerged as an
industry leader. Restructured debt was repaid early and Hynix
creditors made substantial returns on debt they converted to equity.
Mr. Choi stated that "Hynix?s strong performance and return on
investment over the 2003-2007 period demonstrates the sound commercial
judgment of Hynix creditors back in 2001 and 2002 when they agreed to
restructure Hynix debt. There was no government interference, just a
wise business decision."
With no justification for continued imposition, the Council agreed to
lift the countervailing duties, retroactively effective from December