Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources said at the Kwanhun Forum on the 6th that "I expect the results of the overproduction investigation under Section 301 of the U.S. Trade Act to be announced at the end of this month." She added, "We are doing our best so that the tariff rate can be within 15%, as originally promised with the United States."
Section 301 of the U.S. Trade Act allows the U.S. administration to respond to unfair policies and practices of foreign governments, including by imposing a tariff. After President Donald Trump took office, the reciprocal tariffs imposed on major countries were ruled unlawful by the U.S. Supreme Court in February, so the United States imposed a tariff based on Section 122 of the Trade Act, and when the deadline for imposing it ended, it turned to Section 301.
The Office of the United States Trade Representative (USTR) said in June that it would impose a 12.5% tariff on imports from Korea following a forced labor investigation. It then said it would impose an additional tariff based on the results of an investigation related to overproduction.
The Minister said, "Between our (Korea-U.S.) trade authorities, there is some consensus that the tariff should be set within the 15% promised during the Korea-U.S. trade agreement." She added, "However, 15% is not the ultimate goal," and "the goal is a level that is not disadvantageous compared to competitors."
◇ "U.S. politicians misunderstand that, thanks to Coupang, U.S. agricultural, livestock, and marine products are being exported to Korea"
The Minister also said the Coupang issue is not one that would shake the Korea-U.S. alliance. The Minister said, "Many U.S. politicians think that, thanks to Coupang, U.S. agricultural, marine, and livestock products are being imported into Korea."
She added, "When I ask U.S. politicians, 'Information on 80% of U.S. adults was leaked abroad; how do you think the United States would treat corporations that did not properly report it or follow legal procedures?,' most agree."
◇ "No room to share chip corporations' profits... China's localization of lithography equipment is shocking"
In addition, the Minister expressed a negative view of the argument that operating profits of semiconductor corporations such as Samsung Electronics and SK hynix should be distributed to society. She said, "There is talk that because the semiconductor market is booming and making a lot of money, it should be shared, but I think there is no room for that."
She said, "The news of China localizing lithography equipment is shocking," adding, "I take it as a sense that China is proceeding step by step in the semiconductor materials, parts, and equipment field. The scale, speed, and technological prowess are unbelievably fast. We must work harder."
Regarding demands by semiconductor corporations' unions to distribute operating profits as performance bonuses, she said, "I oppose an incentive structure that pays performance bonuses based on operating profit. At a minimum, approval from the board of directors or the general meeting of shareholders should be obtained." She added, "We have raised opinions on revising the Financial Investment Services and Capital Markets Act and the Commercial Act related to this with the relevant ministries, and discussions are underway."
The Minister also said the 52-hour workweek should be improved for the semiconductor industry. The Minister said, "In China, when the 9-9-6 (9 a.m. to 9 p.m., six days a week) system was introduced, employees reportedly raised a ruckus, asking, 'Why block us when we want to work?,'" adding, "I think a system should not dampen the enthusiasm and will of people who want to work hard."