South Korea says chip investments under discussion with US amid tariff concerns
Computer motherboard and chip appear in this illustration taken on Aug 25, 2025. (Photo: REUTERS/Dado Ruvic)
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SEOUL: South Korea and the United States are discussing semiconductor investments in the US as part of broader bilateral talks, a Seoul official told reporters on Friday (Sep 4).
The presidential official was responding to a question about whether planned tariffs on chips flagged by US Commerce Secretary Howard Lutnick were affecting ongoing investment negotiations between the two countries.
“There are various issues between South Korea and the United States, and they are sometimes affecting each other,” the official said, adding that semiconductors were part of investment-related matters under discussion.
“We are making efforts to prevent them from hindering each other.”
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Lutnick said this week that Washington was planning a “targeted, thoughtful tariff policy” on semiconductor imports.
“If you don’t build here, expect to pay to enter the greatest market in the world,” he said in a televised interview.
Under a deal that included US$350 billion of South Korean investment in US manufacturing struck by the countries’ presidents last year, South Korean chipmakers will receive US tariff rates “no less favourable” than terms offered to any other competitor with an equal or larger volume of chip trade.
South Korea is home to Samsung Electronics and SK Hynix, the world’s largest memory chipmakers. Demand has surged for the chips as US tech firms race to build AI infrastructure.
The official said that Seoul’s negotiations with Washington over national security issues had not been making progress, referring to South Korea’s plan to build its own nuclear-powered submarine as part of last year’s deal.

Source: Reuters/ec
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