Andeokgeun "Industry Will Struggle... Government Should Support Companies"
As the inauguration of the Trump administration in the U.S. approaches, the possibility of implementing universal tariffs has been raised, causing tension in the semiconductor industry. On the 20th, Kim Dong-seop, Head of External Cooperation at SK Hynix, expressed a cautious stance regarding the impact of the universal tariffs proposed by President-elect Trump, stating, "Since nothing has been concretely confirmed yet, it is difficult to provide a separate response."
Kim made these remarks during a meeting with reporters before a major industry relay roundtable held at the Lotte Hotel in Jung-gu, Seoul. The roundtable was organized under the chairmanship of An Deok-geun, Minister of Trade, Industry and Energy, to assess the impact on the semiconductor industry and discuss response strategies two months ahead of the new U.S. administration’s inauguration.
About 17 government and industry officials attended the roundtable. A Ministry of Trade, Industry and Energy official explained, "Although the Trump administration has not announced specific policies related to semiconductors, this meeting was arranged to share various scenarios and discuss response measures."
At a semiconductor industry meeting held on the 20th at Lotte Hotel in Jung-gu, Seoul, government and industry officials attended, including Kim Dong-seop, President of External Cooperation at SK Hynix (fourth from the right in the front row), Ji Hyun-gi, Vice President and Head of the Win-Win Cooperation Center at Samsung Electronics DS Division (third from the right in the front row), and Kim Jeong-hoe, Vice Chairman of the Korea Semiconductor Industry Association (second from the right in the front row). An Deok-geun, Minister of Trade, Industry and Energy (fourth from the left in the front row), is giving a speech. Photo by Choi Seo-yoon
From the government side, Minister An Deok-geun, Lee Seung-ryeol, Director of Industrial Policy, and Kang Ki-ryong, Director of Policy Coordination at the Ministry of Strategy and Finance, attended. From the industry side, participants included Kim Dong-seop, President of SK Hynix; Ji Hyun-gi, Vice President and Head of the Win-Win Cooperation Center at Samsung Electronics’ DS Division; Lee Jun-hyuk, CEO of Dongjin Semichem; Ahn Tae-hyuk, CEO of Wonik IPS; and Lee Kyung-il, CEO of PSK.
The roundtable featured free discussions and Q&A sessions on topics such as ▲strengthening pressure on China ▲universal tariffs ▲U.S. subsidy policies ▲and the impact on the materials, parts, and equipment (SoBuJang) industry.
Universal tariffs refer to a policy imposing 10-20% tariffs on all imports and are one of President-elect Trump’s key pledges. If this pledge materializes, domestic companies that have been exporting semiconductors tariff-free under the Korea-U.S. Free Trade Agreement (FTA) could face increased tariff burdens, potentially losing price competitiveness. For products with high price sensitivity, such as memory semiconductors, a decline in profitability is expected to be inevitable.
The SoBuJang sector in semiconductors is also expected to suffer a chain reaction of impacts, including increased export costs and investment pressure. Domestic SoBuJang companies, vulnerable to external shocks, face significant risks of export declines and competitiveness deterioration.
Kim Jeong-hoe, Vice Chairman of the Korea Semiconductor Industry Association and a presenter at the meeting, stated, "Considering the semiconductor supply chain structure where products designed by U.S. companies like Nvidia are manufactured overseas in places like Taiwan and imported into the U.S., tariffs would also be a burden on American companies and industries," adding, "It is necessary to actively explain the adverse effects of tariffs on the U.S. economy to the new U.S. administration."
Anduk Geun, Minister of Trade, Industry and Energy, is speaking at a semiconductor industry meeting held on the 20th at Lotte Hotel in Jung-gu, Seoul, in preparation for the new U.S. administration. Key company executives attending the meeting included Kim Dong-seop, President of SK Hynix; Ji Hyun-gi, Vice President of Samsung Electronics; Lee Kyung-il, CEO of PSK; and Kim Jeong-hee, Vice Chairman of the Semiconductor Industry Association. Photo by Jo Yong-jun
In his opening remarks, Minister An Deok-geun said, "We expect the U.S. First and protectionist policies to be further strengthened and China containment to continue," adding, "Since President-elect Trump mentioned these issues several times during the election process, the industry will have significant concerns about future investments and exports to the U.S. and China." He also noted, "However, there are excessive aspects as well," and stated, "The government will prepare for all situations and respond promptly."
Minister An said, "We will support corporate investment through the creation of a semiconductor mega cluster and a 26 trillion won semiconductor support program," and added, "We will engage with the new U.S. administration through various channels to resolve external uncertainties."
He further stated, "We will closely monitor the U.S.-China conflict situation and thoroughly manage semiconductor supply chain risks," concluding, "Although the situation is highly uncertain, I believe we can turn this crisis into an opportunity based on the technological capabilities developed through our business so far."
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