"Imports of DRAMS (dynamic random access memory semiconductors) during the period of investigation -- January 1, 2001 through June 30, 2002 -- were unfairly subsidized," the Department of Commerce said.

The final ruling opens the way to countervailing duties of 44.71 percent against Hynix Semiconductor, 0.04 percent against Samsung Electronics and 44.71 percent against all other South Korean DRAM exporters.

The duties would be slapped on the South Korean DRAMS manufacturers only if the quasi-judicial US International Trade Commission decides the imports harm or threaten US industry.

An ITC decision is expected July 31, leading to a possible order for duties August 7.

Hynix chief executive E.J. Woo said the US decision to set punitive subsidy margins on the DRAMS was an "outrageous act aimed at a hidden agenda."

"It was absolutely clear from the facts of this case that these subsidy levels are unjustified and illegal," he said in a statement.

The US Department of Commerce wrongly concluded that the South Korean government had been secretly involved in the financial restructuring of Hynix because Seoul owned shares in some South Korean banks, Woo said.

The decision ignored the leading role of Citibank in the Hynix restructuring, he said.

Woo accused the department of seeking to pressure the South Korean government over economic restructuring.

"Freed from political pressure and hidden agendas, the (Department of Commerce's) determination cannot survive court or World Trade Organization scrutiny," he said.

"More importantly, we are confident that the independent and objective market evaluation of the US International Trade Commission will put an end to this case without the need for more wasteful legal conflict."

SPACE.WIRE