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    The Sino Korean Trade Is Approaching

    2010/5/20 10:09:00 29

    Foreign Trade

    South Korea's Trade Commission (KTC) is likely to reconsider anti-dumping duties on ceramics or lower anti-dumping duties this month.

    On the 14 th of this month, more than 30 South Korean real estate construction companies came to Foshan to participate in the Korean ceramics procurement Festival. There was also a strong desire for South Korea to import large quantities of ceramics from Foshan.


    Once the anti-dumping duty rate is lowered, the ceramic trade between China and South Korea will be thawed and heated up after 5 years of antidumping and freezing. This is a good thing for Foshan ceramic enterprises.


    Huge purchasing group releases thawing signal


    Almost all the Korean real estate construction companies have been assembled. The Korean purchasing group has carried out the first Korean ceramics procurement Festival, which was opened on 14 July, with the purchase manager or designer of GS construction, Samsung construction and Da Yu construction.


    "This is the first time South Korea has launched such a strong lineup to purchase Foshan ceramics after it launched anti-dumping duties against Chinese ceramics in 2005."

    Liu Ling, director of Planning Department of China Ceramic City, said that they brought a huge purchase plan of over 100 billion yuan.

    In Korea, real estate is mostly refined decoration, and ceramic procurement is mainly controlled by real estate developers and designers, so this trip is of far-reaching significance.


    Moreover, the background of the real estate tycoons of the Korean purchasing group is also intriguing to Foshan.

    In June 2005, South Korea launched an anti-dumping investigation on China's export of South Korean tiles. The final award imposed a separate tax rate ranging from 2.76% to 29.41% for 9 ceramic enterprises in Foshan, while those who did not participate in the action were subject to a high tax rate of 29.4l%.

    Now, the implementation period of Korea's anti-dumping against ceramics in China is about to expire in 5 years.

    South Korea's real estate business is coming to Foshan, which can be said to be a signal of the whole Chinese and Korean ceramic trade thawing.


    "At present, the eyes of all Korean purchasing groups have turned to China. Now, 95% of the ceramic bathroom products purchased by major construction companies are made in China."

    Korea Sanyou Ceramics Co., Ltd. is the largest importer of Chinese ceramics trading company in South Korea. Its representative, Mr. Kim said, is now an excellent opportunity for Foshan's powerful ceramic enterprises to enter the Korean market.


    China and ROK should enhance understanding


    For the ceramic enterprises in Foshan, because of the impact of anti-dumping on trade, many enterprises that have been heavily taxed have little knowledge of the changes in the Korean market in recent years. Similarly, the Korean real estate purchasing group also lacks knowledge of Chinese ceramic enterprises.


    "The upgrading of China's ceramics in terms of quality and cultural value really amazed us."

    A person in charge of Daewoo construction told reporters that in the past, Italy and Spain were the first choice for Korean builders and designers. Chinese ceramics were considered to be inferior and low priced representatives.


    "Some of the poor traders in South Korea bought relatively low price products from China, and imported them to Korea and sold them at the highest price, resulting in the entire impact of Chinese products in Korea."

    Mr. Kim said that in order to change this situation, China and ROK related parties should enhance their understanding so as to open up new trade situations.


    In fact, during the 5 years of anti-dumping enforcement, the ceramic trade between China and South Korea has never been interrupted. Some domestic ceramic manufacturers have circumvent anti-dumping duties through some trade channels, which is also a potential fact in the industry.


    "A lot of companies are going to rush through the name of our company, selling them secretly to Korea trading company, making the Korean market very messy."

    Huo Jinxiang, general manager of new Zhongyuan International Business Department, disclosed that when Xin Zhongyuan spent 350 thousand US dollars to deal with South Korea's anti-dumping case, it received a 4.64% tax rate.

    However, because of the "softening" of the anti dumping duties by some enterprises and Korean trading companies, the advantages of the new Zhongyuan export to the Korean market are gradually losing.


    Buddhist enterprises want to expand the Korean market


    With the implementation of the 5 year anti-dumping period approaching, Dongpeng, Owenle, Jinyi Tao and other large Foshan pottery enterprises have expressed the intention of opening up to the Korean ceramic market.


    "We hope that the importers and exporters here, together with China's ceramic manufacturers and associations, will jointly sue for lowering the anti-dumping duty rate."

    Yin Hong, Secretary General of the ceramic industry association, told many Korean Buyers in the Summit Forum on ceramic trade between China and South Korea.

    He believes that China's ceramic enterprises have suffered a great deal in the anti dumping of South Korea's ceramics to China, because the ceramic production enterprises in South Korea rarely produce polished tiles.


    General manager of the Korean small Ceramics Co., Ltd. told reporters: "thanks to the efforts of the Ceramic Association, by the end of this year, the anti-dumping duty rate of South Korea on China's ceramic products will be reduced by 10%."

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