RESTRICTED
WORLD TRADE G/SG/N/6/KOR
29September 1995
ORGANIZATION(95-2895)
Original: English Committee onSafeguards
NOTIFICATION UNDER ARTICLE 12.1(A) OFTHE
AGREEMENT ONSAFEGUARDS ONINITIATION OF
ANINVESTIGATION AND THE REASONS FOR IT
KOREA
Thefollowing communication, dated 18September 1995, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
Onbehalf oftheGovernment oftheRepublic ofKorea, Ihereby forward anotification
concerning theinitiation ofasafeguards investigation process related toserious injury arising from
theimportation ofsoybean oil.
1. Following thepetition bydomestic producers ofsoybean oil,theKorea Trade Commission
(KTC) initiated asafeguards investigation effective 30August 1995, under Article 33(1) oftheForeign
Trade Act.
2. Imports ofsoybean oilintotheRepublic ofKorea increased from 9,820 tonsin1993;
33,749 tonsin1994, and19,679 tonsinthefirstfivemonths of1995.
3. Evidence ofserious injury tothedomestic industry isdemonstrated bythedecline indomestic
output from193,151 tonsin1993to174,234 tonsin1994, andthefalloftheindustry 'saverage profit
ratefrom4.3percentin1993to-1.1percentin1994. Most importantly, further evidence ofserious
injury isprovided bythedecline inindustry from 1,930 persons in1992 to1,606 persons in1993,
andfurther to1,044 persons in1994.
4. Korea hasnotyetconsidered taking provisional measures.
5. Themajor exporting countries ofsoybean oilareBrazil, Argentina, Indonesia, andthe
United States. In1994, theirshare ofKorea 'stotalsoybean oilimports were: Brazil: 69.4percent;
Indonesia: 20.7percent; Argentina: 8.9percent; United States: 0.1percent.