Kim Jung-kwan: Korea Seeks Semiconductor Tariffs No Less Favorable Than Rivals, First U.S. Investment Deal to Finish in September

South Korea is pressing the United States to ensure its semiconductor industry does not receive worse tariff treatment than competitors as Washington considers duties linked to domestic production.

Industry Minister Kim Jung-kwan said the discussions continue under what he called the central principle of the previous tariff negotiations: Korean semiconductors should not face less favorable treatment than those of rival countries. U.S. Commerce Secretary Howard Lutnick has said the administration is preparing large semiconductor tariffs, with lower duties for companies that produce in the United States and tariffs for those that do not.

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The overall spirit of our previous tariff negotiations was that our semiconductors would receive treatment no less favorable than those of competing countries. We are continuing discussions under that spirit.

Asked whether South Korea could receive a Taiwan-style exemption tied to the size of its investment in the United States, Kim said that was possible, but stressed that the Taiwan-related arrangement itself was not finished and that the details still required negotiation. He said Washington had not provided a timetable for announcing the semiconductor tariffs.

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It could be that way, but the Taiwan-related matter is not finished yet, and we still need to negotiate the specific details.

Kim also reaffirmed that the first investment project under the U.S.-Korea trade agreement should be completed during September. He said domestic procedures remained, but described the project as proceeding on schedule. Asked about reports that Washington was seeking a last-minute increase in the investment amount, he declined to give a specific answer, saying negotiations involve movement on several issues.

Kim rejected concern that changes involving South Korea’s trade chief and deputy prime minister would disrupt the talks. He said new Trade Minister for Trade Negotiations Park Jung-sung had already been in contact with U.S. Trade Representative Jamieson Greer, and that the investment negotiations should continue without major difficulty.

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There are various back-and-forth elements in negotiations, so I would ask people to wait and see.