Seoul, Washington in Talks on Chip Investments Amid Tariff Plans

South Korea has confirmed that semiconductor investments in the United States are part of ongoing bilateral discussions between the two nations. A senior official in Seoul addressed reporters on Friday, responding to questions about whether planned US tariffs on chips were influencing these negotiations.

The official acknowledged that multiple issues between the two countries are interlinked. "There are various issues between South Korea and the United States, and they are sometimes affecting each other," the official said, noting that semiconductors fall under investment-related matters being discussed. The official added that efforts are being made to ensure these issues do not impede one another.

The remarks follow statements from US Commerce Secretary Howard Lutnick, who announced this week that Washington is developing a "targeted, thoughtful tariff policy" for semiconductor imports. Lutnick warned that companies choosing not to manufacture in the US would face costs when accessing the American market.

These discussions occur against the backdrop of a previous agreement between the two countries' presidents, which involved $350 billion in South Korean investment in US manufacturing. Under that arrangement, South Korean chipmakers were promised tariff rates no less favourable than those offered to competitors with equal or larger chip trade volumes.

South Korea hosts Samsung Electronics and SK Hynix, the world's largest memory chip manufacturers. Demand for their products has grown substantially as American technology firms accelerate artificial intelligence infrastructure development.

The presidential official also indicated that negotiations with Washington on certain national security matters have stalled, specifically referencing South Korea's plans to construct a nuclear-powered submarine as part of last year's agreement.