Document: 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
Document codes: WT/DS299/R
Complainant: South Korea
Respondent: EU
Third parties: China, Taiwan, Japan, U.S.
Dispute stage: Panel
Agreements cited: Art. 1, 2, 10, 12, 14, 15, 19, 22, 32  Subsidies and Countervailing Measures (SCM)Art. VI:3  GATT 1994

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

ANNEX F-1

TIMELINE OF FINANCIAL 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)

ANNEX F-2

SUMMARY TABLE REGARDING KOREA'S CLAIMS AND ARGUMENTS
CONCERNING THE EC SUBSIDY 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.

ANNEX F-3

PANEL'S CONCLUSIONS AS TO THE 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