An investigation into lead-acid battery dumping by Korean firms has been launched by the Gulf Cooperation Council (GCC), a group of six Gulf Arab states.
The GCC—which consists of Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Qatar, Bahrain and Oman—has begun investigating claims that Korean firms are setting their prices below the level sold in the domestic market.
If the accusations by the Middle East Battery Company (MEBCO) are upheld, any resulting tariff imposed could strike a blow to Korean manufacturers such as YNC, Vitzrocell and Daejin Battery, who count the Middle East as a major export destination after Asia, Europe and North America.
According to the Korea Trade-Investment Promotion Agency (KOTRA), GCC nations imported US$367.94 million worth of car batteries in 2013, rising to $393.39 million in 2014.
Korean car batteries account for 18.7% and 8.1% of the market share in the UAE and Saudi Arabia respectively, the KOTRA said.
MEBCO is a joint venture with Johnson Controls and Saudi investors, who have the majority share.
