Korea will extend anti-dumping duties on polyester yarn products from China and Taiwan for two years to protect local manufacturers from unfair price-cutting practices, the government said Thursday.

The Korea Trade Commission (KTC) said it has decided to slap punitive duties of 6.26 percent on polyester filament partially oriented yarn (POY) from the two countries. The move comes after Seoul levied anti-dumping duties of 2.97-6.26 percent on the yarn products from January 2009 onwards.

POYs are used extensively in the manufacturing of both clothing and non-clothing products such as materials used in cars.

The KTC has been conducting a probe into unfair price setting practices by foreign suppliers after receiving complaints from Seong-an Synthetics Co. and TK Chemical Corp. in July 2011.

It conducted on-site inspections and held public hearings to hear arguments from all sides.

"Levying antidumping duties will help protect local companies that can be hurt by imports and ensure fair competition in the local market," the commission under the Ministry of Knowledge Economy said.

The decision has been sent to the finance ministry, which has the right to levy duties, the ministry said. (Yonhap)