Impact of South Korea's renewed anti-dumping investigation into BOPET from China

On April 9, 2025, the South Korean Ministry of Economy and Finance issued Announcement No. 2025-98, stating that it would initiate a mid-term review investigation into anti-dumping measures against polyethylene terephthalate (PET) film exported by Kanghui New Material Technology Co., Ltd. and its affiliated companies from China, as well as Tianjin Wanhua Co., Ltd. The investigation aims to determine whether there is a need to adjust the existing anti-dumping duties. The South Korean tax codes for the products involved are 3920.62.0000 and 3920.69.0000.

On September 5, 2007, South Korea started an anti-dumping investigation on BOPET imported from China and India. In August 2008, South Korea decided to impose anti-dumping duties ranging from 5.76% to 25.32% on Chinese BOPET. Subsequently, South Korea conducted four sunset review investigations, resulting in affirmative final rulings.

Currently, South Korea imposes nearly a 37% anti-dumping duty on BOPET from Chinese companies. Kanghui New Material and its affiliated companies, along with Tianjin Wanhua Co., Ltd., enjoy preferential tax rates of 2.2% and 3.84%, respectively. However, this mid-term anti-dumping review investigation primarily targets the aforementioned companies and their affiliates.

Kanghui New Material is a subsidiary of Hengli Petrochemical (600346.SH), focusing on the research, production, and sales of high-performance biaxially oriented polyethylene terephthalate (BOPET) films. With the support of the Hengli Petrochemical supply chain and high-end positioning, it has become a leading enterprise in China's BOPET industry, ranking second in capacity nationwide.

The company offers a wide range of BOPET products, including general films, optical films, photovoltaic backsheet films, and special functional films, serving a diverse customer base across packaging, optoelectronics, and new energy sectors. The overseas market primarily includes Southeast Asia, South Korea, and India, with some high-end films exported to Europe and the United States.

From the perspective of China's BOPET exports, the volume exported to South Korea in 2024 is 51,600 tons, accounting for about 7% of the total export volume, making South Korea the fourth largest export destination for China's BOPET. Kanghui New Material has long cultivated the South Korean export market, benefiting from tariff advantages, and has become one of the major companies exporting to South Korea.

The production capacity of the South Korean BOPET market is relatively low, accounting for about 10% of global capacity. However, it possesses world-leading capabilities in ultra-thin film production, holding monopolistic advantages in optical films, electronic films, and new energy films. The self-sufficiency rate for high-end BOPET is over 90%, predominantly led by local companies such as SKC and Toray. Middle and low-end BOPET are mainly imported from countries like Southeast Asia and China.

If South Korea adjusts tariffs for BOPET companies from China in the future, it will undoubtedly impact our export market. The question will be whether to exchange price for volume or adjust export channels. In the short term, the impact on China's BOPET export volume is limited. Further attention will be paid to the final tariff adjustment results of this anti-dumping investigation by South Korea against our country.