SEOUL -- The government convened an emergency meeting Thursday to assess the impact of Washington's plan to impose 25 percent tariffs on certain semiconductor imports, focusing on response strategies for South Korean chipmakers, according to officials.
The meeting, chaired by Industry Minister Kim Jung-kwan, took place just hours after U.S. President Donald Trump's administration issued a proclamation outlining a two-phase plan to adjust imports of semiconductors, semiconductor manufacturing equipment and their derivative products.
The plan includes applying a 25 percent tariff on certain artificial intelligence (AI) chips, which are imported into the United States and then reexported to other countries, and a broader tariff accompanied by a tariff offset program to enable companies investing in U.S. semiconductor production to obtain preferential treatment.
Washington also issued a proclamation on adjusting imports of processed critical minerals and their derivative products.
The Ministry of Trade, Industry and Resources said it will put in "all-out" efforts to minimize the impact of the latest U.S. move on Korea while maintaining communication with affected industries.
Trade Minister Yeo Han-koo, who had been set to return home after a weeklong trip to the U.S., has decided to extend his stay to examine potential domestic ramifications from the U.S. proclamations.
Separately, Vice Trade Minister Park Jung-sung, currently in Korea, was scheduled to hold phone talks with U.S. Under Secretary of Commerce for Industry and Security Jeffrey Kessler to address Korea's concerns, according to the ministry.
Later in the day, the ministry held a meeting with major chipmakers here, including Samsung Electronics Co. and SK hynix Inc. to gather opinions on the matter.
Following the meeting, the ministry said the first-phase of Washington's chip import adjustment plan is expected to have a limited impact on Korean companies as they are targeting a narrow list of advanced computing chips, including Nvidia's H200 and AMD's MI325X.
But local chipmakers expressed woes over uncertainties regarding the tariff offset program under the second-phase plan, calling on the government to actively communicate with the U.S. on the matter.
Under the bilateral tariff deal reached last year, the U.S. agreed to offer Korea semiconductor tariff rates that are "no less favorable" than those applied to its direct competitors.
