Seoul – In a recent press briefing, a senior South Korean presidential official confirmed that the two governments are actively discussing semiconductor investment projects in the United States. The talks are part of broader bilateral negotiations and come at a time when the United States is weighing a new tariff strategy on chip imports.
Tariff concerns and diplomatic dialogue
The official acknowledged that “various issues between South Korea and the United States sometimes affect each other,” noting that semiconductor matters are among the investment topics under review. He emphasized that both sides are working to ensure that any tariff measures do not hinder the progress of joint projects.
U.S. Commerce Secretary Howard Lutnick has recently outlined a “targeted, thoughtful tariff policy” aimed at semiconductor imports. In a televised interview, Lutnick warned, “If you don’t build here, expect to pay to enter the greatest market in the world.” The statement signals a push for foreign chipmakers to establish manufacturing capacity on U.S. soil.
Deal framework and market impact
Under the agreement reached by the two presidents last year, South Korean firms pledged roughly $350 billion in U.S. manufacturing investment. The deal guarantees that South Korean chipmakers will receive tariff rates no less favorable than those offered to any competitor with comparable or larger chip trade volumes.
South Korea is home to industry giants Samsung Electronics and SK Hynix, the world’s leading memory‑chip producers. Demand for their products has surged as American technology companies race to expand AI infrastructure, making the outcome of these negotiations especially consequential for both economies.
Security talks lag behind
The Seoul official also noted that progress on national‑security‑related discussions, such as South Korea’s plan to build a nuclear‑powered submarine, has been slower. While the submarine issue is separate from the chip talks, it underscores the broader complexity of the U.S.–South Korea partnership.
Both governments appear committed to keeping trade and investment channels open, even as they navigate the delicate balance between protecting domestic industries and fostering international cooperation.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
