Hyundai Steel Industrial Complex in Chungcheong Province / Courtesy of Hyundai Steel

A U.S. court has ruled in favor of the Korean government and Hyundai Steel in a case over countervailing duties imposed on steel products that were claimed to be subsidized through low-cost electricity, the industry ministry said Wednesday.

The U.S. Court of International Trade (CIT) delivered the verdict after the U.S. Department of Commerce imposed a 1.1 percent countervailing duty on steel imports from Hyundai Steel and Dongkuk Steel Mill last year, arguing Korea's low electricity prices constituted a subsidy.

At issue was whether the country's low electricity prices had "specificity," targeting exclusive industries. The department argued specificity existed, as electricity consumption was concentrated in four major industries.

A countervailing duty applies when an imported product benefits from subsidies in its home country, negatively affecting the importing nation's industry. The duty was imposed on steel plates 6 millimeters or thicker.

Korea argued electricity is "broadly available and widely used," adding the department's "grouping" of several industries lacked a legal basis.

The CIT ruled there must be "shared characteristics" when grouping several industries and ordered the U.S. department to reassess its previous judgment within 90 days.

Korea's electricity prices for industrial use, meanwhile, are relatively lower than those in other countries.

Data from the International Energy Agency showed Korea's electricity bill for industrial use per megawatt-hour was $95.60 in 2021, below the OECD average of $115.50.

"The Korean government has worked closely with businesses and law firms at home and abroad to defend its position," the ministry said in a release. "We will continue addressing the countervailing duty related to electricity costs." (Yonhap)