1.A safeguard measure may be imposed in accordance with this Regulation where a product originating in Korea is, as a result of the reduction or the elimination of the customs duties on that product, being imported into the Union in such increased quantities, in absolute terms or relative to Union production, and under such conditions as to cause or threaten to cause serious injury to the Union industry producing a like or directly competitive product.
2.Safeguard measures may take one of the following forms:
(a)suspension of further reduction of the rate of customs duty on the product concerned provided for under the Agreement; or
(b)increase in the rate of customs duty on the product to a level which does not exceed the lesser of:
(b)the most-favoured-nation (‘MFN’) applied rate of customs duty on the product in effect at the time the measure is taken, or
the base rate of customs duty specified in the Schedules in Annex 2-A to the Agreement pursuant to Article 2.5.2 of the Agreement.