WT/DS299/R 
 Page F-1 
 
 
 
ANNEX F 
  
TIMELINE OF EVENTS;  SUMMARY OF THE PANEL'S 
CONCLUSIONS ON SUBSIDIES AND INJURY 
 
 
Contents Page 
Annex F-1 Timeline of Financial Progra mmes and Salient Events in 2000 and 
2001 F-2 
Annex F-2 Panel's Conclusions as to the WTO Consistency of the EC 
Determinations on Subsidies  F-3 
Annex F-3 Panel's Conclusions as to the WTO Consistency of the EC 
Determinations on Injury F-4 
 
 WT/DS299/R 
Page F-2  
 
ANNEX F-1 
 
 
TIMELINE OF FINANCI AL PROGRAMMES AND  
SALIENT EVENTS IN 2000 AND 2001 
  
1997  Korean financial crisis 
June 1998  Corporate Restructuring Agreement ( CRA ) 
7 July 1999  HEI acquired LGS 
13 October 1999  LGS renamed HME and merged with HEI 
September 2000  Citibank/SSB retained by Hynix as financial advisor for restructuring 
28 November 2000  Economic Ministers' Meeting 
  Letter from Minister of Finance & Economy to Presidents of KEIC and KEB 
30 November 2000  Letter from Minister of Commerce, Industry & Energy to CEO KEIC 
December 2000  Citibank/SSB held meetings with banks to outline plans 
  Syndicated Loan of KRW 800 billion  
  KEB filed request for extended credit limit 
  FSC approves exte nded credit limit 
  KDB Debenture Programme announced 
January 2001  BBB- (Korean rating agencies) 
  Speculative B (Standard & Poor's) 
  KEIC Guarantee for Export Credits USD 600 million increase  
4 January 2001  KDB Debenture Programme (Hynix admitted) 
9 January 2001  Economic Ministers' Meeting 
10 January 2001  Letter from Minister of Finance & Economy to Presidents of KEIC and KEB 
22 January 2001  Speculative BB+ (Korean rating agencies) 
March 2001  B- (Standard & Poor's) 
10 March 2001  Meeting with officials from creditor banks, FSC, Hynix and Gov't of Korea 
29 March 2001  HEI officially renamed 'Hynix' 
April 2001  Creditors Financial Institution Council ( CFIC ) established 
10 April 2001  Economic Ministers' Meeting 
23 April 2001  Meeting of creditor banks 
May 2001  May Restructuring Programme  
7 May 2001  CFIC recognition that Hynix in default of Syndicated Loan 
June 2001  Purchase of CBs by banks 
June-August 2001  Hynix stock price collapsed, DRAMs prices continued to fall 
August 2001  CCC+ (Standard & Poor's) 
  Hynix stopped participating in KDB Debenture Programme 
3 August 2001  SSB revised its earlier more optimistic projections 
September 2001  CRA replaced by Corporate Re structuring Promotion Act ( CRPA ) 
9 September 2001  CC (Standard & Poor's) 
October 2001  'Selective Default' (SD) (Standard & Poor's)  
31 October 2001  October Restructuring Programme   
25 July 2002  EC investigation initiated 
23 April 2003  Preliminary Determination (Regulation 708/2003) 
11 August 2003  Final Determination (Regulation 1480/2003) 
  WT/DS299/R 
 Page F-3 
 
 
ANNEX F-2 
 
 
SUMMARY TABLE REGARDING KOREA 'S CLAIMS AND ARGUMENTS 
CONCERNING THE EC SU BSIDY DETERMINATIONS* 
  
 EC'S FINAL DETERMINATION OF 
 Financial Contribution by: 
PROGRAMME  Public 
Body Entrusting or 
Directing a Private Body Benefit 
Existence Calculation 
of Benefit Specificity 
SYNDICATED LOAN   Inconsistent Inconsistent Not reviewed 
 KDB Consistent     
 KEB  Consistent    
 KFB Not countervailed 
      
KEIC GUARANTEE Consistent  Consistent Inconsistent Not reviewed 
      
KDB DEBENTURE 
PROGRAMME Consistent  Consistent Inconsistent Consistent 
      
MAY 2001 RESTRUCTURING 
PROGRAMME Inconsistent Consistent** Inconsistent Consistent 
     
OCT 2001 RESTRUCTURING 
PROGRAMME   Consistent Inconsistent Consistent 
Six Option 1 Banks:      
 Woori Bank  Consistent    
 Chohung Bank  Consistent    
 KEB  Consistent    
 NACF  Consistent    
 Citibank  Consistent    
 KDB Consistent     
 
* Our determination of "consistency" has to be read in light of the claims and arguments as made before us and 
as explained in our findings. ** This is assuming arguendo  that the EC's determination of the existence of a financial contribution by the 
government was consistent with Article 1.1(a) of the SCM Agreement . WT/DS299/R 
Page F-4  
 
ANNEX F-3 
 
 
PANEL'S CONCLUSIONS AS TO TH E WTO CONSISTENCY OF THE  
EC DETERMINATION ON INJURY 
 
 
Article 15.2: Volume Effects 
 
Treatment of unsubsidized imports  Consistent 
Treatment of LGS imports Consistent 
Significance of the import increase Consistent 
 
Article 15.2: Price Effects 
 
Market dynamics Consistent  
Hynix not a market leader Consistent 
Alternative methodologies for evaluating price undercutting Consistent 
Injury POI period Consistent 
 
Article 15.4: Injury 
 
Evaluation of factors: 
• Wages 
• Other factors  
Inconsistent 
Consistent 
Infineon statements Consistent 
Overall assessment of domestic industry Consistent 
 
Article 15.5: Causation 
 
Causal relationship between subsid ized imports and injury to the 
domestic industry Consistent 
Non-attribution requirement: 
• Economic downturn 
• Inventory burn 
• Overcapacity 
• Other (non-subsidized) imports  
Inconsistent 
Consistent 
Inconsistent 
Inconsistent 
 
 
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