Chip tariff talks with US based on understanding Korea won't be disadvantaged: Seoul official
Industry Minister Kim Jung-kwan, left, shakes hands with U.S. Secretary of Commerce Howard Lutnick during the G20 Innovation Ministerial in Chapel Hill, North Carolina, Wednesday (local time). Courtesy of Ministry of Trade, Industry and Resources
Korea's Industry Minister Kim Jung-kwan said Thursday that Seoul and Washington are continuing talks on U.S. semiconductor tariffs under the understanding that Korea would not be put at a disadvantage compared with its competitors.
Kim made the remarks during a meeting with reporters at an event marking four U.S. companies' plans to invest in Korea, a day after U.S. Commerce Secretary Howard Lutnick said that President Donald Trump's administration is working to develop a "targeted" and "thoughtful" tariff policy for semiconductors.
"During tariff negotiations in October, the U.S. already said that it would not treat Korean semiconductors less favorably than those of its competitors," he said. "I believe the two countries are continuing discussions in this spirit."
The minister also pointed out the semiconductor-related portion of a joint fact sheet that Seoul and Washington published in November to outline bilateral agreements on trade, investment and security.
The fact sheet included a U.S. pledge to offer semiconductor tariff rates for Korea that are "no less favorable" than terms that may be offered in a future deal covering a volume of chip trade at least as large as Korea's.
"The consistent position of both the Korean government and the U.S. government is that we will proceed in the spirit of the joint fact sheet and the (relevant) memorandum of understanding on investment," he said.
Asked when the U.S. is expected to announce chip tariffs, Kim said that the U.S. side has not made any mention of the timeline.
Commenting on a plan for Korea to announce its first investment project under a bilateral trade deal, Kim anticipated that related issues could be concluded sometime this month, suggesting that the investment announcement could come this month.