Seoul: South Korea and the United States are discussing semiconductor investment in the United States as part of wider economic negotiations, as Seoul seeks to ensure that its chipmakers are not placed at a disadvantage by any new US tariff policy.
The development shows that the issue goes beyond semiconductors alone. Investment and tariffs are emerging as connected issues as the two countries work to implement their broader economic agreement.
A senior South Korean presidential official said on Friday that semiconductor investment in the United States had become one of the investment related issues under discussion following a request from the US side.
The official said various issues between the two countries could affect one another and that Seoul was working to prevent them from hindering progress in other areas of the negotiations.
The discussions have gained importance after US Commerce Secretary Howard Lutnick said the administration of President Donald Trump was considering a targeted and thoughtful tariff policy for semiconductors.
Lutnick has indicated that companies producing semiconductor products in the United States would not pay duties, but the final treatment of companies producing outside the country has not been announced.
South Korea's presidential office said on Thursday that details of any new US semiconductor tariffs had not been finalised. Seoul said it would continue working closely with Washington to prevent the policy from having an unfavourable impact on South Korean companies.
The issue is particularly important for South Korea because the country is home to Samsung Electronics and SK Hynix, two of the world's leading memory chip manufacturers. Demand for memory chips has been supported by the rapid expansion of artificial intelligence infrastructure.
South Korean Trade, Industry and Resources Minister Kim Jung kwan said Seoul and Washington were continuing their discussions based on an understanding that South Korean semiconductor companies should not receive less favourable treatment than their competitors.
That principle was included in a joint fact sheet issued by the two countries in November 2025.
Under the agreement, South Korea committed a total of $350 billion in US investment. The package includes $150 billion in approved investment in the shipbuilding sector and $200 billion in additional strategic investment.
The wider investment plan covers several areas, including shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, artificial intelligence and quantum computing.
The $350 billion commitment should not be viewed as a semiconductor investment package alone. No specific additional amount for semiconductor investment has been announced as part of the latest discussions.
The earlier agreement also addressed possible future US tariffs on semiconductors and semiconductor manufacturing equipment. It said the United States intends to provide South Korea with tariff terms no less favourable than terms that may be offered in a future agreement covering a volume of semiconductor trade at least as large as South Korea's.
Kim said the current tariff discussions were continuing in that spirit.
However, this does not mean that South Korean semiconductor exports have been guaranteed exemption from the planned tariffs.
Washington has not announced the final tariff rates, the full range of products that would be covered or a timetable for introducing any broader semiconductor tariff policy.
The South Korean presidential official also said it remained unclear whether the US request for semiconductor investment was separate from the $200 billion strategic investment package already agreed between the two countries. No specific method or arrangement had been decided, the official said.
This leaves an important question unresolved: whether any additional South Korean semiconductor investment in the United States will become part of the eventual discussions over tariff treatment.
The investment relationship is also moving in the opposite direction. Four US companies have committed a combined $2 billion to projects in South Korea in the semiconductor, advanced materials and energy sectors.
Air Products plans to expand semiconductor gas and rare gas facilities in Pyeongtaek, while Axcelis Technologies plans to expand production of equipment used in chip manufacturing. Corning plans to invest in advanced glass and other materials, while Pacifico Energy plans to develop a 3.2 gigawatt offshore wind project in southwestern South Korea.
The projects underline the deep economic links between the two countries as Washington seeks to expand semiconductor production in the United States.
For Seoul, the talks are important for maintaining access to the US market while protecting the competitiveness of Samsung Electronics, SK Hynix and the wider South Korean semiconductor industry.
The negotiations therefore involve more than whether South Korean companies will invest further in US chip production. At their centre is a broader question over how investment commitments, tariff treatment and industrial policy will be balanced between the two allies.
For now, those terms remain under negotiation, and neither government has announced a final semiconductor tariff arrangement or a new South Korean semiconductor investment agreement.