South Korea's trade commission said Friday that it has decided to launch an investigation into an alleged dumping of Japanese polyethylene terephthalate (PET) film.

The decision follows a formal complaint from three South Korean manufacturers, according to the Korea Trade Commission.

"The commission decided to launch an antidumping investigation after a review of materials submitted by the petitioners yielded a conclusion that their complaint was reasonable," the commission said in a press release.

Subject to the probe are polyethylene terephthalate films, better known as PET films, that are over 10 micrometers in thickness.

Such PET films are mostly used to produce films for displays or solar panels. The local market for PET film was at about 400 billion won (US$377 million) in 2012, with about 80 percent of the total consumption being supplied by local manufacturers and the rest by imports.

The commission said it will likely conclude its investigation by February when it will make a preliminary decision on possible antidumping measures that may include imposition of antidumping tariffs, followed by a final decision in May.

Meanwhile, the commission said it has recognized damage to four local companies from the country's bilateral free trade agreement with the European Union, which went into effect in July 2011.

The companies include a local pork processor and cosmetics producers who had claimed damage to their sales and profitability due to growing imports from Europe under the Korea-EU FTA.

The commission's recognition of damage will entitle the companies to a set of financial and administrative support measures designed to help boost their sales and exports, it said. (Yonhap News)