Kim Jeong-gwan: U.S. Semiconductor Tariffs Discussed Under Principle of 'No Less Favorable Treatment'

Minister of Trade, Industry and Energy Kim Jeong-gwan stated on the 3rd (local time) that discussions regarding the semiconductor tariffs under consideration by the Donald Trump administration are proceeding under the principle of ensuring South Korea receives treatment no less favorable than that of competing nations.

Minister Kim made the remarks while meeting with reporters after hosting the "U.S. Investment Notification Ceremony," an event to attract investment from American companies, at a hotel in Washington, D.C.

Minister Kim said, "(The U.S.) has previously mentioned during tariff negotiations last October that it would provide treatment for our semiconductors no less favorable than that for competing countries, and I believe discussions are continuing under that spirit."

Regarding whether the South Korean government recently conveyed its position to the U.S. concerning the review of semiconductor tariffs, he explained, "In accordance with the joint fact sheet (containing the agreement between the South Korean and U.S. leaders) and the memorandum of understanding (MOU) on investment in the U.S., as well as the recent Section 301 (tariff imposition), the consistent stance of both the South Korean government and the U.S. is to proceed in accordance with that spirit."

As for the timing of the U.S. announcement on semiconductor tariffs, he stated, "There was no mention (from the U.S. side)."

Regarding the announcement of South Korea's investment projects in the U.S., Minister Kim said, "Rather than being a particularly major issue, there are various domestic procedures taking a little bit of time, and going through those processes, we plan to wrap it up within September, which remains unchanged."

To the question of whether the U.S. side requested an increase in the investment scale, he only responded, "There is national interest, and negotiations involve various back-and-forth elements. I have a desire for those aspects to be respected a bit."

Introducing the investment notification ceremony held that day, Minister Kim noted, "(Investors) expressed their support for South Korea's foreign investment policies," adding, "They shared their agreement with South Korea's semiconductor investment policy and direction, and expressed opinions that they want to utilize it."

U.S. Secretary of Commerce Howard Lutnick stated yesterday that the imposition of tariffs on semiconductor products is under review, adding that it will be a "selective and prudent tariff policy."

Previously, U.S. media outlet Politico reported that not only semiconductors themselves but also finished goods containing semiconductors, such as laptops, could be included in the tariff targets.

At the investment notification ceremony hosted by the Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA), four U.S. companies in the semiconductor, advanced materials, and clean energy sectors announced foreign direct investment (FDI) in South Korea totaling 2 billion dollars (2.8 trillion won).

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.