What is South Korea’s position in chip tariff talks with the United States?

Industry Minister Kim Jung-kwan said Seoul and Washington are discussing U.S. semiconductor tariffs on the understanding that Korea will not be treated less favorably than competitors. He said this matches the spirit of the October negotiations and the November joint fact sheet.

What did Kim Jung-kwan say about the timing of U.S. semiconductor tariffs?

Kim said the U.S. side has not mentioned when chip tariffs will be announced. He said Seoul is still in discussions with Washington and that the earlier stated position on not disadvantaging Korean semiconductors remains the basis for talks.

Chip tariff talks with US based on understanding Korea won't be disadvantaged: Seoul official

Q: When could Korea’s first investment project under the bilateral trade deal be announced?

Kim anticipated that the related issues could be concluded sometime this month, which would allow the first investment announcement to come this month. He said the project is being discussed under the bilateral trade deal framework.

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Summary

South Korea and the United States are continuing talks on U.S. semiconductor tariffs under the understanding that Korea will not be disadvantaged against its competitors. Industry Minister Kim Jung-kwan said the position reflects earlier tariff negotiations and a November joint fact sheet. He also said the U.S. has not given a timeline for announcing chip tariffs, while related issues on Korea’s first investment project under the bilateral trade deal could be wrapped up this month.

Key Facts

Kim Jung-kwan said the U.S. had already said in October that it would not treat Korean semiconductors less favorably than those of competitors.
The November joint fact sheet said U.S. semiconductor tariff terms for Korea should be no less favorable than terms in a future deal covering chip trade at least as large as Korea’s.
Kim said the U.S. side has not mentioned any timeline for announcing chip tariffs.
He said related issues on Korea’s first investment project under the bilateral trade deal could be concluded sometime this month.

By Yonhap

Published Sep 4, 2026 7:53 am KST

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.

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