South Korea's Industry Minister Says U.S. Semiconductor Tariff Talks Continue Under 'No Less Favorable' Terms
Quick Look
South Korea's Industry Minister Kim Jung-kwan stated that Seoul and Washington are continuing negotiations on U.S. semiconductor tariffs, emphasizing that South Korea will not be disadvantaged compared to competitors, citing a joint fact sheet from November that pledges 'no less favorable' tariff terms for Korean chips.
AI-generated summary
Why It Matters
The U.S. and South Korea issued a joint fact sheet in November outlining bilateral agreements on trade, investment, and security, including a U.S. pledge to offer semiconductor tariff rates for South Korea that are 'no less favorable' than those in future deals covering chip trade volumes at least as large as Korea's.
By Song Sang-ho
WASHINGTON, Sep. 3 (Yonhap) -- South Korea's Industry Minister Kim Jung-kwan said Thursday that Seoul and Washington are continuing talks on U.S. semiconductor tariffs under the understanding that South Korea would not be put at a disadvantage compared with its competitors.
Kim made the remarks during a meeting with reporters at an event marking four U.S. companies' plans to invest in South Korea, a day after U.S. Commerce Secretary Howard Lutnick said that President Donald Trump's administration is working to develop a "targeted" and "thoughtful" tariff policy for semiconductors.
"During tariff negotiations in October, the U.S. already said that it would not treat South Korean semiconductors less favorably than those of its competitors," he said. "I believe the two countries are continuing discussions in this spirit."
The minister also pointed out the semiconductor-related portion of a joint fact sheet that Seoul and Washington published in November to outline bilateral agreements on trade, investment and security.
The fact sheet included a U.S. pledge to offer semiconductor tariff rates for South Korea that are "no less favorable" than terms that may be offered in a future deal covering a volume of chip trade at least as large as Korea's.
"The consistent position of both the South Korean government and the U.S. government is that we will proceed in the spirit of the joint fact sheet and the (relevant) memorandum of understanding on investment," he said.
Asked when the U.S. is expected to announce chip tariffs, Kim said that the U.S. side has not made any mention of the timeline.
Commenting on a plan for South Korea to announce its first investment project under a bilateral trade deal, Kim anticipated that related issues could be concluded sometime this month, suggesting that the investment announcement could come this month.
What to Watch
AI outlook โ possibilities, not facts
South Korea will announce its first investment project under the bilateral trade deal this month.
Likely ยท Within weeks
Open Questions
- When will the U.S. announce final semiconductor tariff rates?
- What specific tariff levels are under discussion?
- Which U.S. companies are planning to invest in South Korea as mentioned in the event?
