According to a report by ZDNet Korea, Kim Yong-beom, the policy director of the South Korean Presidential Office, announced on the 29th during a briefing on the results of the U.S.-South Korea summit talks that the U.S. government has decided that w...
According to a report by ZDNet Korea, Kim Yong-beom, the policy director of the South Korean Presidential Office, announced on the 29th during a briefing on the results of the U.S.-South Korea summit talks that the U.S. government has decided that when it applies tariffs to Korean semiconductors, its tax rates will not be more unfavorable than those of its main competitor, Taiwan. The conclusion of this important agreement is expected to significantly eliminate major uncertainties faced by major Korean semiconductor companies such as Samsung Electronics and SK Hynix in exports to the United States.
Kim Yong-beom made it clear that South Korea will apply semiconductor tariffs "at a level no less favorable than that of its major competitor, Taiwan." Although the specific tariff rate for semiconductors has not yet been clearly listed, it is expected to be ultimately decided at a level similar to that in Taiwan. Currently, Taiwan’s exports of semiconductors and other finished products to the United States are being levied a 20% temporary tariff, and additional negotiations are still ongoing.
In addition to the chip issue, South Korea and the United States also agreed to maintain mutual reciprocal tariffs at 15% and reduce tariffs on automobiles and components to 15%.
As for economic and trade cooperation, the investment package provided by the United States to South Korea is quite large, including US$200 billion in cash investment and US$150 billion in shipbuilding industry investment. Judging from export data, this agreement is of great significance to Korean companies because reduced uncertainty will help stabilize market expectations.
According to the Korea International Trade Association, South Korea’s semiconductor exports to the United States in 2024 will be US$10.6 billion. The U.S. market accounts for 7.5% of South Korea's total semiconductor exports. Although the proportion is lower than other major markets such as China (32.8%), Hong Kong (18.4%), Taiwan (15.2%) and Vietnam (12.7%), its strategic importance cannot be ignored. This arrangement on semiconductor tariffs has provided Korean companies with a relatively fair starting point for competition in the rapidly changing global trade environment.
