Seoul requests ‘special consideration’ as US mulls tariffs on chip imports

Seoul: South Korea has asked the United States to make “special consideration” of its chip exports as the Donald Trump administration is moving to impose tariffs on imported semiconductors, Seoul’s industry ministry said on Wednesday.

The South Korean government submitted a written opinion to the U.S. administration regarding Washington’s national security investigation into semiconductor imports under the U.S. Trade Expansion Act, according to the Ministry of Trade, Industry and Energy, reports Yonhap news agency.

The Trump administration has been looking to impose new tariffs on semiconductors and pharmaceuticals, with investigations into such imports currently under way.

In its submitted opinion, the Seoul government called for “special consideration” of Korean semiconductor exports to the U.S., saying that semiconductors and manufacturing equipment made in Korea have “very limited” impact on the U.S. security and supply chains.

The written statement also said Washington’s potential tariffs on chip imports may have a “negative” influence on Korean companies’ investment plans in the U.S., including those for artificial intelligence (AI) infrastructure.

Seoul also highlighted that the trade balance between the countries in the semiconductor sector is nearly equal, according to the ministry.

“The government will continue close consultations with the U.S. at all levels to minimize any negative impact on Korean companies,” the ministry said.

“We will also maintain close communication with industry stakeholders and develop strategic response measures, while continuing joint outreach efforts of the public and private sectors in the U.S.”

Meanwhile, Acting President Lee Ju-ho said the government will communicate closely with the Czech Republic to swiftly finalise a nuclear power plant deal temporarily scuttled by a court injunction this week.

Lee made the remark during an economic security strategy meeting, a day after a Czech court blocked the country’s main electricity firm, CEZ, from signing the estimated 26 trillion-won (US$18.6 billion) contract with a South Korean consortium led by Korea Hydro & Nuclear Power Co. until it reviews a legal complaint filed by France’s EDF, a losing bidder in the tender.

“Our government will communicate closely with the Czech side to reach a final contract at an early date,” he said during the meeting at the government complex in Seoul.

“The Czech government’s position is that there are no problems as the evaluation process for the tender was conducted transparently and in accordance with the law,” he added.

Industry Ministry Ahn Duk-geun was in Prague as the court decision came while he was en route to attend a signing ceremony for the deal.

The acting president also underscored the gravity of the trade environment in the wake of the United States’ imposition of new tariffs on imported goods.

The two countries will continue tariff consultations when U.S. Trade Representative Jamieson Greer makes his planned visit to South Korea next week for the Asia-Pacific Economic Cooperation trade ministers’ meeting, he said.

—IANS