Whirlpool Corp. said Wednesday that South Korean government subsidies are enabling Samsung Electronics and LG Electronics to sell some refrigerators made in South Korea and Mexico in the U.S. at less than fair value.
Whirlpool also says the Korean government has given unfair subsidies to Samsung and LG over the past several years.
Whirlpool said it filed petitions with the U.S. Department of Commerce and the International Trade Commission and is calling for an investigation into the two South Korean companies’ production of bottom-mounted refrigerators. Such refrigerators have the freezer below the refrigerator instead of on top.
Whirlpool, based in Benton Harbor, Mich., claims the two other companies are “dumping” the refrigerators — selling them for substantially less than fair value to gain a competitive edge.
“Dumping is an unfair trade practice used to drive out competitors, which means consumers end up with fewer choices,” said Whirlpool North America President Marc Bitzer.
Whirlpool said its products affected are made in Amana, Iowa, where Whirlpool employs about 2,000 people.
If granted, the request could lead to higher prices for American consumers, who have benefited from an appliance price war. The move comes at an awkward time for the Obama administration, which is trying to boost trade with South Korea by urging Congress to ratify a free-trade agreement between the two countries.
Samsung said in a statement that, “Samsung respects the trade rules in the U.S. market, and is confident that the Department of Commerce will confirm that there has been no dumping or subsidization and that the ITC will find that there has been no material injury caused to U.S. producers,”.
LG have not yet responded to requests for comment.
