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South Korea is pressing the United States for greater flexibility and incentives as Washington considers imposing additional restrictions on the export of advanced semiconductors to China. South Korean Trade Minister Ahn Duk-Geun emphasized the need for a balanced approach, highlighting the potential economic impact on South Korean companies that are major players in the global semiconductor industry.
The U.S. is reportedly considering expanding its curbs on the export of advanced semiconductor technologies to China, citing concerns over the potential military applications of these technologies. The move is part of a broader strategy by Washington to curb Beijing’s access to critical technologies that could enhance its military capabilities.
However, South Korea is wary of the potential economic repercussions. Samsung and SK Hynix, two of the world’s largest chipmakers, have substantial manufacturing operations in China. Stricter export controls could disrupt their operations, leading to significant financial losses and supply chain disruptions, not only in China but globally.
Minister Ahn indicated that South Korea is engaging in high-level discussions with U.S. officials to explore possible exemptions or modifications to the proposed export controls. The goal is to strike a balance between security concerns and economic realities, ensuring that South Korean companies remain competitive while complying with international regulations.
The issue underscores the delicate balancing act facing South Korea, which is navigating between its economic ties with China and its security alliance with the United States. The semiconductor industry remains a critical component of South Korea’s economy. The outcome of these negotiations could have significant implications for the global tech industry, which relies heavily on South Korean semiconductors.