 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The South Korean presidential office said it will pursue consultations with the United States based on the recently released fact sheet regarding Washington’s new semiconductor proclamation.
Lee Kyu-yeon, Senior Presidential Secretary for Public Communication, said at a briefing at the Chunchugwan press center on January 18 that “the principle of proceeding under conditions that are not disadvantageous compared with major countries, as outlined in the fact sheet, will continue to be maintained, and consultations will be carried out under that framework.”
Earlier, U.S. President Donald Trump signed a proclamation on January 14 (local time) imposing a 25 percent tariff on certain semiconductors, including Nvidia’s AI chip H200, that are imported into the United States and then re-exported to third countries. The White House fact sheet also suggested the possibility of expanding the scope of tariffs to semiconductors and related products more broadly, as well as introducing a tariff offset program.
Yeo Han-koo, South Korea’s Trade Minister at the Ministry of Trade, Industry and Energy, said on January 17 upon returning to Incheon International Airport that “under the current situation, the impact on Korean companies is not expected to be significant in the immediate term.”
Yeo delayed his return by a day after President Trump signed proclamations related to semiconductors and critical minerals, conducting additional on-site analysis of the potential impact. He explained that the first phase of the U.S. measures is focused on advanced system semiconductors produced by companies such as Nvidia and AMD, while memory chips—the main export items of Samsung Electronics and SK hynix—are excluded, limiting the immediate impact on Korean firms.
However, Yeo cautioned that it remains unclear when and how second-phase measures may be expanded, adding that the government will work closely with industry to ensure the best possible outcomes for Korean companies.
Regarding President Trump’s directive to begin negotiations under Section 232 of the Trade Expansion Act concerning critical mineral imports, Yeo said the move reflects Washington’s push to diversify critical mineral supply chains and emphasized the need for continued monitoring and consultations with the U.S. government.
Yeo also addressed delays in convening the Korea–U.S. Free Trade Agreement (FTA) Joint Committee, noting that discussions on non-tariff barriers are broad and complex and should not be rushed. He said South Korea has held multiple meetings and maintained frequent consultations with the Office of the U.S. Trade Representative (USTR).
In response to speculation that the postponement of the FTA Joint Committee was linked to the recent controversy over a personal data breach involving Coupang, Yeo said the issue was explained to the U.S. side as a matter of enforcing domestic laws and procedures without discrimination, regardless of whether the company involved is American or Korean. He added that the U.S. side expressed understanding, noting that similar measures would have been taken had such an incident occurred in the United States.
Yeo stressed that given the range of opinions within the U.S. Congress and among regional stakeholders, South Korea will continue efforts to clearly communicate its policy positions through sustained engagement rather than one-off explanations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
