The purpose of this note is to survey the countervailing duties (CVDs) determination of the Japanese investigating authorities (JIAs) vis–à–vis the Korean government and Hynix Co., Ltd, one of the world’s largest semiconductor producers based in Korea, with a specific focus on the element of ‘direction and entrustment’. The survey would be worthwhile in that the determination marks Japan’s first ever CVD. In addition, the issue of ‘direction and entrustment’ is an increasingly sensitive one in the context of trade remedy investigation in that governments may resort to ‘direction and entrustment’ to circumvent their international obligations by using private proxies to take actions that would otherwise be imputable to them. Towards the stated end, the note will examine the pertinent legal framework and jurisprudence, followed by an analysis of factual elements of the JIA determination. The note will conclude with subsequent legal developments and a discussion on policy implications for the Republic of Korea.
Journal of World Trade