Ye Han-gu: "Low Possibility of 100% Semiconductor Tariff"... Emphasizing Most-Favored-Nation Tariff

[Financial News] The Korean government has stated that since it has agreed to receive most-favored-nation treatment in the semiconductor and bio sectors in tariff negotiations with the United States, even if the U.S. imposes high tariffs on semiconductors worldwide in the future, Korean companies will be subject to the lowest level of tariffs.
 On the 7th, Ye Han-gu, head of the Trade Negotiation Headquarters of the Ministry of Trade, Industry and Energy, appeared on SBS Radio's 'Kim Tae-hyun's Political Show' and explained, "There will be no case where semiconductors from Samsung Electronics or SK Hynix face a 100% tariff," and "We have agreed to receive most-favored-nation treatment from the U.S. in the semiconductor and bio sectors in this negotiation."
 Director Ye emphasized, "Even if the U.S. sets the semiconductor tariff at 100%, if the most-favored-nation tariff is set at 15%, Korea will also be subject to that level of tariff," highlighting that Korea has secured a relatively advantageous position even in the event of the introduction of global high tariffs.
 In this Korea-U.S. negotiation, it was agreed to lower the existing 25% automobile tariff to 15%, and the mutual tariff clause was also adjusted to 15%. In addition, the clause that even if additional tariffs are imposed on future strategic industries such as semiconductors and bio, the 'lowest tariff' will be applied, allowing the government to minimize the impact of high tariffs. 
 However, there is a concern that if the U.S. applies equally high tariffs to all countries, it may be difficult for Korea to avoid it. However, considering the case where the Trump administration specified a '15% semiconductor tariff' in negotiations with Europe, the industry predicts that the most-favored-nation tariff is likely to converge at the 15% level.


aber@fnnews.com Park Ji-young Reporter