S. Korea's industry minister leaves for US for talks on chips, steel tariffs

Published : Nov 9, 2021 - 09:24 Updated : Nov 9, 2021 - 09:24

A parking lot of Kia Motors Corp.'s plant in Gwangju, 330 kilometers south of Seoul, is almost empty last Tuesday. South Korean carmakers' local and overseas sales dropped for the fourth consecutive month in October amid the supply shortage of semiconductors. (Yonhap)

South Korea's Industry Minister Moon Sung-wook left for the United States on Tuesday for talks on semiconductor supply chains, steel tariffs and other pending issues, his office said.

During a three-day stay in Washington, Moon plans to meet with US Commerce Secretary Gina Raimondo and Energy Secretary Jennifer Granholm, as well as other government officials and industry experts, to discuss ways to strengthen economic partnership, according to Seoul's Ministry of Trade, Industry and Energy.

"The two sides are planning to discuss pending trade issues, such as the cooperation in semiconductor supply chains and steel tariffs under the Section 232 rules," the ministry said in a release.

The meetings were to take place right after the Nov. 8 deadline by which the US asked major chipmakers and automakers to share business information to help address the global semiconductor shortage.

South Korea's top two chipmakers -- Samsung Electronics Co. and SK hynix Inc. -- said that they have submitted related information to the US other than "some sensitive data" such as information on their clients.

"The minister is expected to explain those data and related circumstances to the US side, and to discuss ways to boost bilateral cooperation to help resolve the chips crisis," a ministry official said.

Steel tariffs have also been a key bilateral issue following a trade deal between the US and the European Union late last month.

The agreement calls for ending a 25 percent tariff by the US on steel imports from the EU and 10 percent on aluminum, and the potential increase in the volume of EU's steel imports to the US has sparked concerns over adverse impacts on South Korea's exports.

"We will push for swift consultations with the US to review and revise Section 232 rules on our steel and aluminum products," the official said.

Under a 2018 deal between Seoul and Washington, 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. (Yonhap)