The U.S. Department of Commerce on Wednesday issued a preliminary determination in favor of Whirlpool who had claimed that the South Korean government is providing subsidies to South Korean clothes washer manufacturers that violate trade laws.
The Commerce Department found that Korean manufacturers Daewoo Electronics, LG Electronics and Samsung Electronics received subsidies ranging from 0.22 percent to more than 70 percent.
Late last year, Whirlpool filed anti-dumping petitions against residential clothes washers from South Korea and Mexico and an anti-subsidy petition against the same products from South Korea seeking enforcement of U.S. and international trade laws.
"Whirlpool is pleased with this favorable preliminary decision, given the proven record that South Korean appliance producers have benefitted from their government's subsidies that violate trade law," Whirlpool said in a statement. "We look forward to participating fully in the thorough investigation by the U.S. Department of Commerce, and we are optimistic that the final determination will further validate that these subsidies undermine competition and cause material harm to the U.S. appliance industry."