The Korean government has launched a dumping investigation into caustic soda imported from China and Taiwan.
The Korea Trade Commission (KTC) under the Ministry of Trade, Industry and Energy (MOTIE) announced Monday that it initiated a probe to determine whether solid sodium hydroxide from China and Taiwan is being dumped and whether it has caused injury to domestic industry. Solid sodium hydroxide, commonly known as caustic soda or lye, is a chemical material widely used in everyday products such as soap and paper as well as in strategic industries including semiconductors and batteries.
The concern is that low-priced caustic soda from China and Taiwan has been flooding the Korean market, shaking the domestic industry ecosystem. Youngjin, the chemical company that filed the investigation request with the KTC, saw its revenue plunge 13% year-on-year last year. Its operating profit and net profit, each in the 2 billion won range in 2024, both swung to losses of several hundred million won last year.
China and Taiwan ranked first and second, respectively, among Korea's caustic soda import sources last year. Imports from the two countries accounted for 62% of total caustic soda imports.
The KTC plans to complete a preliminary investigation within three months of Monday's decision and a final investigation within three months after that. Each investigation phase can be extended by up to two months if necessary.