(LEAD) China launches anti-dumping probe against S. Korean solvent

(ATTN: UPDATES with S. Korea's reaction)

SHANGHAI, March 27 (Yonhap) -- China's commerce ministry said Monday it has launched an anti-dumping probe into South Korean exports of a chemical product amid Chinese economic retaliation against South Korea.

China also said methyl isobutyl ketone (MIBK) imported from Japan or South Africa is also subject to the probe that could last up to Sept. 27, 2018.

MIBK is used as a chemical intermediate, a solvent for manufacturing paints, rubbers, pharmaceuticals, other chemicals, and industrial cleaners, according to the American Chemistry Council.

South Korean exports of MIBK accounted for about half of all Chinese imports of MIBK.

The probe did not mean a suspension of imports of MIBK, though South Korean, Japanese and South African companies could face suspension of their exports or fines depending on the outcome of the probe.

China has taken a series of economic retaliations against South Korea in recent months over the ongoing deployment of an advanced U.S. missile defense system in South Korea.

Beijing has repeatedly pressed South Korea to drop the plan, claiming the U.S. missile defense system would undermine its security interests.

Still, Seoul and Washington have dismissed such concerns, saying the U.S. missile shield is defensive in nature and focused on North Korea's missile activities.

In Seoul, South Korea's Ministry of Trade, Industry and Energy indicated that the Chinese probe could be unrelated to the Chinese economic retaliation against South Korea, noting that South Korea's export of MIBK is negligible in its total exports and China had raised the anti-dumping issue a while ago.

Kumho P&B Chemicals, South Korea's sole maker of MIBK, said it will actively deal with the probe. Last year, Kumho P&B Chemicals exported US$27 million worth of MIBK.
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