South Korea has initiated an investigation into the influx of hydrocarbon resin imports from China and Taiwan, following a complaint from Kolon Industries Inc. The Korea Trade Commission under the Ministry of Trade, Industry and Energy is scrutinizing four Chinese companies and three Taiwanese companies to assess the alleged damages caused by low-priced imports. Kolon Industries has claimed that the dumping margins for Chinese and Taiwanese companies were at 15.52 percent and 18.52 percent, respectively, resulting in detrimental effects on local industry. Hydrocarbon resin, also known as petroleum resin, is a crucial material used in various products such as paints and adhesives. South Korea currently imposes an 8 percent basic tariff rate on hydrocarbon resin, but Chinese products are imported duty-free under the free trade agreement. The commission stated that considering the decline in domestic business sector's operating profit margins, the damage caused by the imports cannot be considered insignificant. The investigation will involve a preliminary determination within a maximum five-month period, followed by a final conclusion within an additional maximum seven-month period.