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| From left is U.S. President Joe Biden, President Moon Jae-in and Samsung Electronics Vice Chairman Lee Jae-yong / Korea Times file |
Trade-off between peace process, Samsung's US investment looming
By Kim Yoo-chul
The top priority for President Moon Jae-in's attendance at this year's G20 Summit in Rome, Italy, is how to win support from U.S. Security Council members to move forward with his idea of making a formal declaration of the end of the Korean War before the end of his term, next year, and how to narrow differences on the timing and conditions for the steps and expected consequences of such a declaration.
Moon and his foreign policy teams led by Foreign Minister Chung Eui-yong and intelligence chief Park Jie-won have no doubt this year's G20 Summit is Moon's last chance to break the deadlock in the stalled inter-Korean talks. Moon was hoping to hold another summit with North Korean leader Kim Jong-un before or during the scheduled 2022 Beijing Winter Olympics.
As leverage and to increase support for the proposal, Moon is expected to actively pitch South Korea's expanded role and contribution in terms of resolving ongoing technology supply chain issues, during a planned session for discussions on the matter to be chaired by U.S. President Joe Biden, on the sidelines of the G20, according to ruling Democratic Party of Korea (DPK) sources, Sunday.
"President Moon was stressing South Korea and the United States are aligned in terms of pushing and sharing core strategic initiatives. While it's fair to say Washington officials are doubtful about the urgent need and necessity of a formal declaration to end the Korean War, Moon's position is that South Korea is firmly positioned to stand together with the United States to resolve blocked supply chain issues and also to reaffirm Washington's clear stance in terms of confirming no hostile intent toward North Korea, which would be a plus to break the deadlock in the peace process on the Korean Peninsula," one DPK lawmaker said.
Makes sense
Biden previously convened a meeting with senior executives at the world's top-tier semiconductor companies including TSMC, Samsung Intel and Microsoft, asking them to join a Washington-led campaign to better handle semiconductor shortage issues.
Specifically, the U.S. Department of Commerce requested Samsung "voluntarily" share sensitive information, which was viewed as something that Samsung would not budge on easily. The ministry said Intel, General Motors and SK hynix have indicated they plan to be very forthcoming with their trade secrets. However, the ministry didn't include Samsung among the willing firms.
"Given Samsung Electronics' massive investment in the United States and its planned additional $17 billion spending plan for the semiconductor manufacturing industry there, Samsung could play an expanded role in strengthening the Washington-Seoul alliance, as Samsung's contribution could help the Biden administration reduce worries about the United States losing access to its semiconductor supply," a DPK official said. Washington officials believe their calls for a detailed disclosure of tech supply chain alliances will provide an efficient solution to resolve the supply chain issues to help the world's top economy remain resilient in managing its chip supply.
Samsung is already one of the top foreign direct investors (FDIs) in the United States, as it has spent billions of dollars there over the decades. It's been manufacturing Apple's "brain chips" for use in iPhones at its foundry chip line in Texas. Williams County, just a few miles from Samsung's plant in Austin, Texas, authorized its massive financial assistance plans in return for establishment of Samsung's new foundry chip plant there.
But still, Samsung has yet to announce the location. Samsung Vice Chairman Lee Jae-yong will soon fly to the United States after President Moon returns home and is forecast to deliver a decision at that time.
On a related note, if Moon hopes to hold another in-person summit with Kim Jong-un, he will need support from China and Russia.
China is equally crucial and comparable to the United States for Samsung, as the South Korean chip titan has become sandwiched on multiple fronts between Washington and Beijing.
At the time of its vice chairman's parole earlier this year, Justice Minister Park Beom-kye said the decision was due to concerns over the country's economic situation. Later, Cheong Wa Dae said it hoped for Lee to play a role in addressing semiconductor and vaccine shortage issues.
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