Although South Korea and the United States have completed tariff negotiations, the semiconductor industry has not yet been determined. South Korea’s Minister of Industry, Trade and Energy, Yeo Han-koo, said in a media interview today that there is still room for cooperation with Taiwan to obtain the most preferential tariff treatment.
Lu Hanjiu was interviewed by South Korea's MBC radio program "Focused on" today. When talking about the tariff negotiations with the United States, he said, "We do not think the negotiations are over," and said that relevant issues will still be raised through various opportunities in the future.
As for the semiconductor tariffs that have yet to be concluded, Lu Hanjiu said that the semiconductor industry map will not change easily in one or two years. "In fact, in the semiconductor industry, the biggest competitor that is most similar to us can be regarded as Taiwan." The United States has previously stated that it will give South Korea and Taiwan similar tax rates. While Taiwan is still negotiating with the United States, "there is still room for cooperation with Taiwan to obtain the most preferential treatment."
However, Lu Hanjiu did not elaborate on the possible ways to cooperate with Taiwan.
The United States has previously reached a consensus with South Korea that the tariffs on semiconductor products levied on South Korea will not be more disadvantageous than other major competing countries. This has also drawn more attention to the outcome of negotiations between Taiwan and the United States.
In August, U.S. President Trump stated that he would impose approximately 100% tariffs on imported semiconductors and require companies to produce in the United States or commit to setting up factories in the United States in exchange for exemptions. However, Reuters recently quoted U.S. officials as reporting that Trump’s aides are more cautious on the matter and that in order to avoid irritating China, the plan to impose tariffs on imported semiconductors may not be implemented immediately.