Certain Corrosion-Resistant Steel Products From the Republic of Korea: Preliminary Results and Recission, In Part, of Countervailing Duty Administrative Review; 2024

Issuing agencies

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were provided to producers and exporters of certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea), during the period of review (POR) January 1, 2024, through December 31, 2024. In addition, Commerce is rescinding this review with respect to Dongkuk Coated Metal Co., Ltd (Dongkuk CM). Interested parties are invited to comment on these preliminary results.

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<title>Federal Register, Volume 91 Issue 194 (Thursday, October 8, 2026)</title>
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[Federal Register Volume 91, Number 194 (Thursday, October 8, 2026)]
[Notices]
[Pages 64353-64355]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20699]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-879]


Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Preliminary Results and Recission, In Part, of Countervailing 
Duty Administrative Review; 2024

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies were provided to producers 
and exporters of certain corrosion-resistant steel products (CORE) from 
the Republic of Korea (Korea), during the period of review (POR) 
January 1, 2024, through December 31, 2024. In addition, Commerce is 
rescinding this review with respect to Dongkuk Coated Metal Co., Ltd 
(Dongkuk CM). Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable October 8, 2026.

FOR FURTHER INFORMATION CONTACT: Henry Wolfe, AD/CVD Operations, Office 
VIII, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW Washington, DC 
20230; telephone: (202) 482-0574.

SUPPLEMENTARY INFORMATION: 

Background

    On July 25, 2016, Commerce published a countervailing duty (CVD) 
order on CORE from Korea.\1\ On August 22, 2025, based on timely 
requests for review, in accordance with 19 CFR 351.221(c)(1)(i), 
Commerce initiated an administrative review of the Order.\2\ On 
September 30, 2025, Commerce selected Hyundai Steel Company (Hyundai 
Steel) and KG Dongbu Steel Co., Ltd (KG Dongbu Steel) as the mandatory 
respondents in this review.\3\
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    \1\ See Certain Corrosion-Resistant Steel Products from India, 
Italy Republic of Korea and the People's Republic of China: 
Countervailing Duty Order, 81 FR 48387 (July 25, 2016) (Order).
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews 90 FR 41043 (August 22, 2025); see also 
Order.
    \3\ See Memorandum, ``Respondent Selection,'' dated September 
30, 2025.
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    Due to the lapse in appropriations and Federal Government shutdown, 
on November 14, 2025, Commerce tolled all deadlines in administrative 
proceedings by 47 days.\4\ Additionally, due to a backlog of documents 
that were electronically filed via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS) during the Federal Government shutdown, on November 24, 
2025, Commerce tolled all deadlines in administrative proceedings by an 
additional 21 days.\5\ On May 14, 2026, we extended the deadline for 
the preliminary results of this review until September 30, 2026.\6\ On 
September 25, 2026, we extended the deadline for the preliminary 
results of this review an additional five days.\7\ Accordingly, the 
deadline for these preliminary results is now October 5, 2026.
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    \4\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated November 14, 2025.
    \5 \ See Memorandum, ``Tolling of All Case Deadlines,'' dated 
November 24, 2025.
    \6\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated May 
14, 2026.
    \7\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated 
September 25, 2026.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\8\ 
A list of topics included in the Preliminary Decision Memorandum is 
provided in Appendix I. The Preliminary Decision Memorandum is a public 
document and is on file electronically via ACCESS, which is available 
to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a 
complete version of the Preliminary Decision Memorandum can be accessed 
directly at <a href="https://access.trade.gov/frnotices">https://access.trade.gov/frnotices</a>.
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    \8\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Administrative Review of the Countervailing Duty 
Order on Certain Corrosion-Resistant Steel Products from the 
Republic of Korea; 2024,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Order

    The product covered by the Order is CORE from Korea. For a complete 
description of the scope of the Order, see the Preliminary Decision 
Memorandum.

Recission of Administrative Review, In Part

    In accordance with 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if all parties that 
requested the review withdraw their requests within 90 days of the date 
of publication of the notice of initiation of the requested review. 
Commerce received a timely-filed withdrawal request with respect to 
Dongkuk CM. Because the withdrawal request was timely filed, and no 
other parties requested a review of this

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company, in accordance with 19 CFR 351.213(d)(1), Commerce is 
rescinding this review of the Order with respect to Dongkuk CM.

Methodology

    Commerce is conducting this administrative review in accordance 
with 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For 
each of the subsidy programs found countervailable, Commerce 
preliminarily determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\9\ For a full description 
of the methodology underlying our preliminary results, see the 
Preliminary Decision Memorandum.
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    \9\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Rate for Non-Individually Examined Companies

    The Act does not address the establishment of a rate to apply to 
companies not selected for individual examination when Commerce limits 
its examination in an administrative review pursuant to section 
777A(e)(2) of the Act. However, Commerce's regulation at 19 CFR 
351.109(g) states that Commerce will determine the rate for non-
selected companies by following the process set forth in 19 CFR 
351.109(f)(1)-(2), which generally parallels the process for 
determining the all-others rate in an investigation under section 
705(c)(5) of the Act. Section 705(c)(5)(A) of the Act and 19 CFR 
351.109(f) state that for companies not investigated, in general, we 
will determine an all-others rate by weight averaging the 
countervailable subsidy rates established for each of the companies 
individually investigated, excluding zero and de minimis rates or any 
rates based entirely on facts available.
    Accordingly, to determine the rate for companies not selected for 
individual examination, Commerce's practice is to weight-average the 
net subsidy rates for the selected mandatory respondents, excluding 
rates that are zero, de minimis, or based entirely on facts 
available.\10\ In this administrative review, we preliminarily 
calculated countervailable subsidy rates for the mandatory respondents, 
Hyundai Steel and KG Dongbu Steel, that are not zero, de minimis, or 
based entirely on facts available. Accordingly, we are preliminarily 
assigning to the companies under review that were not selected for 
individual examination a countervailable subsidy rate equal to the 
weighted average of the countervailable subsidy rates calculated for 
Hyundai Steel and KG Dongbu Steel, weighted by the mandatory 
respondents' publicly ranged sales values for the merchandise under 
consideration, consistent with the guidance in section 705(c)(5)(A)(i) 
of the Act.\11\
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    \10\ See, e.g., Certain Pasta from Italy: Final Results of the 
13th (2008) Countervailing Duty Administrative Review,75 FR 37386, 
37387 (June 29, 2010).
    \11 \ With two respondents under examination, Commerce normally 
calculates: (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sales values for the merchandise under consideration. Commerce then 
compares (B) and (C) to (A) and selects the rate closest to (A) as 
the most appropriate rate for all other producers and exporters. See 
19 CFR 351.109(f)(2)(ii). See also Memorandum, ``Calculation of the 
Weighted Average Subsidy Rate for the Companies Not Selected for 
Individual Examination,'' dated concurrently with this notice.
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Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
determine the following net countervailable subsidy rates exist for the 
POR, January 01, 2024, through December 31, 2024.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Hyundai Steel Company \12\..............................            0.58
KG Dongbu Steel Co., Ltd.\13\...........................            4.82
Companies Not Selected for Individual Review \14\.......            2.22
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Disclosure 
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    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Hyundai Steel: Hyundai ITC and Hyundai Green Power. Commerce 
additionally initiated on the following company names, which we find 
to be alternate names of Hyundai Steel: Hyundai Steel and Hyundai 
Steel Co., Ltd..
    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with KG 
Dongbu Steel: KG Eco Solution. Commerce additionally initiated on KG 
Steel Corporation (KG Steel), a company whose CORE production 
operations were folded into KG Dongbu Steel as a result of a merger 
in 2019. See KG Dongbu Steel's Letter, ``KG Dongbu Steel's 
Affiliated Companies Response,'' dated October 24, 2025. 
Accordingly, we are treating KG Steel and KG Dongbu Steel as one 
entity.
    \14\ See Appendix II for a list of the non-selected companies 
under review.
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    Commerce intends to disclose its calculations and analysis 
performed to interested parties for these preliminary results within 
five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in the Federal Register, in accordance with 19 CFR 351.224(b).

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in the case briefs, may be filed not later than five days after 
the date for filing case briefs.\15\ Interested parties who submit case 
briefs or rebuttal briefs in this proceeding must submit: (1) a table 
of contents listing each issue; and (2) a table of authorities.\16\ All 
briefs must be filed electronically using ACCESS. An electronically 
filed document must be received successfully in its entirety in ACCESS 
by 5:00 p.m. Eastern Time on the established deadline.
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    \15\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Procedures).
    \16\ See 19 CFR 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we 
request that interested parties provide at the beginning of their 
briefs a public executive summary for each issue raised in their 
briefs.\17\ Further, we request that interested parties limit their 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the executive summaries as the 
basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final results in this administrative 
review. We request that interested parties include footnotes for 
relevant citations in the executive summary of each issue. Note that 
Commerce has amended certain of its requirements pertaining to the 
service of documents in 19 CFR 351.303(f).\18\
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    \17\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \18\ See APO and Service Procedures.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS by 5:00 p.m. Eastern Time within 30 days after the date of 
publication of this notice. Requests should contain: (1) the party's 
name, address, and telephone number; (2) the number of participants, 
and whether any participant is a foreign national; and (3) a list of 
issues to be discussed. Oral presentations at the hearing will be

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limited to issues raised in the briefs. If a request for a hearing is 
made, Commerce will inform parties of the scheduled date for the 
hearing.\19\
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    \19\ See 19 CFR 351.310(d).
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Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and CBP shall assess, countervailing duties 
on all appropriate entries covered by this review, for the above-listed 
companies.
    For the companies for which this review is rescinded, Commerce will 
instruct CBP to assess countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period January 1, 2024, through December 31, 
2024, in accordance with 19 CFR 351.212(c)(l)(i). We intend to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of this notice in the Federal Register.

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 351.107(e), 
Commerce intends to instruct CBP to collect cash deposits of estimated 
countervailing duties with regard to shipments of subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the final results of this review, as follows: 
(1) the cash deposit rate for the companies listed above will be equal 
to the company-specific estimated individual countervailable subsidy 
rates determined in the final results of this review, except if the 
rate is less than 0.50 percent and, therefore, de minimis within the 
meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate 
will be zero; (2) if both the producer and exporter of the subject 
merchandise have company-specific estimated subsidy rates assigned, and 
their rates differ, then the applicable cash deposit rate will be the 
higher of these two rates; (3) if either the producer or the exporter, 
but not both, of the subject merchandise has a company-specific 
estimated subsidy rate assigned, the applicable cash deposit rate will 
be that company's company-specific rate; and (4) the cash deposit rate 
for all other producers and exporters will be continue to be 1.19 
percent, the all-others subsidy rate established in the 
investigation.\20 \These cash deposit instructions, when imposed, shall 
remain in effect until further notice.
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    \20\ See Order, 81 FR 48389.
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Final Results

    Unless otherwise extended, we intend to issue the final results of 
this administrative review, which will include the results of our 
analysis of the issues raised in the case briefs, within 120 days of 
publication of these preliminary results in the Federal Register, 
pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Notification to Interested Parties

    We are issuing and publishing these preliminary results in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.213(d)(4) and 19 CFR 351.221(b)(4).

    Dated: October 5, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Review
IV. Scope of the Order
V. Diversification of Korea's Economy
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Recommendation

Appendix II

Non-Selected Companies Under Review

1. POSCO
2. POSCO International
3. POSCO Coated & Color Steel Co., Ltd.
4. POSCO Steeleon Co., Ltd.
5. SeAH Coated Metal
6. SeAH Steel Corporation
7. TCC Steel Corp.

[FR Doc. 2026-20699 Filed 10-7-26; 8:45 am]
BILLING CODE 3510-DS-P


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