US top trade official says chip info sharing 'inevitable' under 'unprecedented' situation

US Commerce Secretary Gina Raimondo has said that Washington's recent request on South Korean and major global chipmakers to submit trade data was an "inevitable" measure under "unprecedented" circumstances of a global supply shortage, according to South Korea's industry ministry Wednesday.

Raimondo made the remarks during her meeting with Seoul's Industry Minister Moon Sung-wook held in Washington, a day after Samsung Electronics Co. and SK hynix Inc. submitted their business information upon the US request.

"(During the talks,) Secretary Raimondo said that the US is well aware of concerns in South Korea and noted that it was an inevitable measure under unprecedented circumstances," the ministry said in a release.

"The secretary then vowed to strictly manage those submitted data, expressing gratitude to South Korean firms for their cooperation," it added.

In September, the US department asked for the information to help address the global chip crisis, which sparked concerns about the possible leak of what chipmakers consider major trade secrets.

The US stressed the reports would be "voluntary" but also said it had tools to make the businesses submit such information if necessary.

"Moon made it clear that such a measure should be a one-off event," the ministry said, adding the two sides vowed joint efforts for the stabilization of the global chip supply chains.

Earlier in the day, Moon told reporters that the US is unlikely to ask for additional information from South Korean firms.

Samsung and SK hynix dominate the global memory chip market with a combined market share of more than 70 percent. Samsung is also the world's No. 2 contract chip manufacturer.

During the talks, the two sides also agreed to create a new director-level dialogue channel on semiconductors and to hold an inaugural meeting on Dec. 8, according to the ministry.

Under the format, Seoul and Washington plan to form a public-private working group to jointly analyze supply chains and explore new cooperation projects.

The ministers also agreed to expand and promote the director-level bilateral dialogue for industry cooperation to a ministerial one for deeper consultations and exchanges on a wide range of issues, including major industry policy, investment and technology, it added.

Also on the table were steel tariffs, which have been a key issue following a recent trade deal between the US and the European Union that ends a 25 percent tariff by the US on steel imports from the EU and 10 percent on aluminum.

Moon called for the revision of the Section 232 tariffs on steel and aluminum imports, amid concerns that the US-EU deal could have adverse impacts on South Korean exports.

Currently, the US waives a 25 percent tariff on South Korean steel imports in return for a yearly import quota of 2.63 million tons for Korean steel products, or 70 percent of Seoul's average export volume over the past three years, in accordance with their 2018 deal.

Moon is on a three-day visit to the US to discuss major industry issues. He is also scheduled to meet with US Energy Secretary Jennifer Granholm before returning home Thursday. (Yonhap)