Interview with Yulchon Advisor Seungwoo Son
"Protecting Technological Hegemony Through Tariff Pressure"
Semiconductor Tariffs Expected to Attract Factories to U.S. Mainland
Concerns Over Technology and Talent Outflow from Samsung and SK via U.S. Factories
Analysis suggests that behind U.S. President Donald Trump's 'tariff bomb' lies a 'technology security' strategy aimed at protecting and fostering domestic advanced technology. In particular, there are concerns that semiconductor tariffs could lead to the outflow of Korean technology and talent to the U.S., necessitating thorough countermeasures.
Son Seung-woo, former president of the Korea Institute of Intellectual Property, is being interviewed by Asia Economy. Photo by Yoon Dong-joo
Seungwoo Son, an advisor on Intellectual Property (IP) and Technology (IP & Technology Convergence) at the law firm Yulchon and former president of the Korea Intellectual Property Research Institute, said in an interview with Asia Economy on the 24th, "President Trump's tariff bomb is clearly closely related to technology security," adding, "The imposition of tariffs also targets violations of technology and intellectual property within the framework of unfair practices. It is a measure to prevent the U.S. from losing its dominance in advanced technology."
Advisor Son is recognized as an expert in the IP field in South Korea. He earned his master's and doctoral degrees from the University of Wisconsin Law School in 2003 and has served as a member of the Korean delegation to the United Nations Commission on International Trade Law (UNCITRAL) from 2006 to 2012, a specialist member of the Presidential National Intellectual Property Committee from 2016 to 2023, and president of the Korea Intellectual Property Research Institute from 2021 to 2024. Currently, he works as an advisor in the Intellectual Property and Technology group at Yulchon Law Firm. He also serves as a member of the Korea International Trade Association's Information Strategy Advisory Committee and as vice president of the 4th Industrial Revolution Convergence Law Society.
Advisor Son views President Trump as "a leader very sensitive to intellectual property infringement." As evidence, he said, "We need to look back at Trump's first term in 2018." He explained, "The U.S. Trade Representative (USTR) annually investigates and reports on countries infringing on U.S. IP. Based on this, then-President Trump explicitly called China a 'technology thief,' using the English term 'Thief' directly," adding, "Along with this, he imposed a 25% tariff on China and regarded IP infringement as a 'national security threat.' This stance continues into his second term."
He said that the 'semiconductor tariffs' Trump announced to be imposed in April are also based on this. Advisor Son analyzed, "Semiconductors are a concentration of advanced technologies, and the current foundry market, where most semiconductor chips for U.S. companies are produced by Taiwan's TSMC (64.9%) and our Samsung Electronics (9.3%), which carry the risk of war, is causing anxiety for President Trump and the U.S.," adding, "To eliminate this risk factor, it seems they are trying to attract semiconductor factories to the U.S. mainland through tariff pressure."
"The U.S. likely has ambitions to use this as a foothold to revive manufacturing, establish a foundation to produce semiconductors domestically, and develop technological capabilities," Advisor Son added. He warned that in this series of processes, Korean companies such as Samsung Electronics and SK Hynix will inevitably have to build factories in the U.S., dispatch personnel, and continue investing, raising concerns about the outflow of proprietary technology and talent. He emphasized, "Last year, a significant number of our semiconductor personnel moved to the U.S. semiconductor company Micron, raising concerns about talent leakage within and outside the government, and it could be even worse."
Advisor Son also analyzed that the emergence of China's DeepSeek played a significant role in President Trump's tariff imposition. As soon as Trump took office, the Chinese AI startup DeepSeek launched the AI chatbot 'R1,' shaking the U.S.'s dominance in the AI market, which strengthened Trump's resolve to pressure China further and tighten tariffs.
He said, "At the end of January, President Trump urgently met with Jensen Huang, CEO of NVIDIA, likely to discuss low-spec graphics processing units (GPUs) supplied to China," adding, "Despite sanctions lowering specifications, DeepSeek used these to create high-performance AI platforms, so there is a high possibility of new measures to block even low-spec GPU supplies." Regarding concerns about DeepSeek's information leakage, he expressed confidence, saying, "It is quite possible." He particularly pointed out Chinese laws such as the National Security Law, which stipulate a 'cooperation obligation' requiring companies to hand over data upon the Chinese government's request, as "the most serious problem." He said, "If I carelessly input my sensitive information into DeepSeek, not only DeepSeek but also the Chinese government can access it, so the initial blocking measures by our government and others were appropriate."
However, he gave great significance to DeepSeek's impact on the market by creating a high-performance AI platform at low cost, saying, "It is time for us to actively pursue low-cost AI development." He added that to facilitate smooth development, the regulatory environment in our market must first be eased. He said, "The government's enacted 'Artificial Intelligence Basic Act' has created many regulations while integrating and organizing initial content," adding, "If regulation comes first, development may slow down. Even if a highway is built, cars may not run on it. We need to look back at Europe's current situation, which regrets having regulated AI first."
Below is a Q&A with former President Son
- Can tariffs targeting countries other than China, such as Canada and Mexico, also be seen as related to 'technology security'?
▲ Currently, President Trump can impose tariffs based on the International Emergency Economic Powers Act (IEEPA) enacted in 1977. Under this law, the U.S. president can declare a national emergency and impose tariff measures based on abnormal and special threats abroad. Trump regarded IP infringement as a 'national security threat' even during his first term. Now, President Trump is imposing tariffs to correct unfair trade caused by trade deficits, and if you look closely at this process, IP infringement is also considered within the framework of unfair practices. It can be seen as a measure to prevent the U.S. from losing its future advanced technology dominance.
Son Seung-woo, former president of the Korea Institute of Intellectual Property, is being interviewed by Asia Economy. Photo by Yoon Dong-joo
- President Trump has also announced plans to impose tariffs on semiconductors. Semiconductors seem to be the field most closely related to 'technology security.' Can Trump's plan to impose tariffs be attributed to this?
▲ Regarding semiconductors, the issues our companies face are tariffs and subsidies. As many experts predict, complete abolition of subsidies is unlikely. Many states have already invested heavily in semiconductors, and factory establishment through subsidies creates many jobs and induces additional investment, so the trend will likely be to reduce rather than eliminate subsidies. The tariff mechanism needs to be examined carefully. Former President Joe Biden enacted the CHIPS and Science Act (CSA) and provided subsidies and benefits, but President Trump is taking the opposite approach. He is reducing incentives for investment and using tariffs as a means to pressure companies. This change in stance indicates urgency. There are political interests involved. The U.S. is uneasy about the current supply chain where South Korea and Taiwan produce semiconductors. TSMC and Samsung Electronics dominate most of the global foundry market, and they also produce the most advanced chips for U.S. companies. Considering that both countries are in precarious situations with the risk of war, if war breaks out, the U.S. could suffer a fatal blow. Taking this into account, the Trump administration is trying to attract these companies' factories to the U.S. If they succeed in attracting factories through coercive tariffs, the government can reduce subsidies and tax benefits it has been paying and collect taxes, achieving two goals at once. If Samsung Electronics and SK Hynix build factories in the U.S., they will have to dispatch technical personnel and invest large capital locally. Naturally, there is a risk of technology and talent leakage. Last year, many of our talents moved to U.S. company Micron, raising concerns about leakage, and it could be worse. Meanwhile, the U.S. aims to revive manufacturing, attract advanced technology and talent to its territory, and eventually secure a foundation to produce semiconductors directly.
- There is also analysis that the emergence of China's DeepSeek directly influenced President Trump's actions.
▲ That is very likely. The U.S. suspects DeepSeek of technology theft and IP infringement. It is claimed that DeepSeek shortened training time by using results created by OpenAI. OpenAI stipulates in its terms that customers using its products should not create competing products using them. However, DeepSeek allegedly violated this by using a 'distillation' method to directly use data collected by OpenAI to train itself. There may be legal debates on whether this constitutes IP infringement. Under current law, AI-generated outputs are not protected by copyright. However, we need to watch the investigation results by OpenAI and the U.S. government.
- DeepSeek was blocked by our government and others due to concerns about information leakage. DeepSeek is open source and stores collected information on servers in China. Do you think there is a real possibility of information leakage?
▲ The biggest problem is the laws enforced in mainland China. According to China's National Security Law and others, companies must fully disclose data to the Chinese government upon request. There is a legal obligation to cooperate with government policies and investigations. If sensitive personal information is input into DeepSeek, not only DeepSeek but also the Chinese government can access it. This is a very serious issue.
- In the U.S., President Trump met with CEO Huang on January 31, indicating a response.
▲ I expect sanctions will soon prohibit the sale of low-spec GPUs to China. The U.S. government has controlled NVIDIA from selling high-performance GPUs to China. NVIDIA supplied China with the H800, a downgraded version of the H100, and recently the H20, but DeepSeek used the H800 to create low-cost, high-performance AI chips, causing a stir. Recently, President Trump had an emergency meeting with CEO Huang, likely discussing this. Although NVIDIA supplied low-spec GPUs to China under U.S. sanctions, DeepSeek still created its platform, so the U.S. is likely to take new measures to block even these supplies. Consequently, the scope of China's semiconductor sanctions is expected to expand further.
- How should our government and companies respond well to the rapidly changing U.S. and AI markets?
▲ The places most affected by tariff imposition are factories. When factories move or are newly built, technology and talent also move. Measures such as supply chain reorganization and establishing new bases to prevent technology leakage should be explored.
AI development should be pursued more actively, as DeepSeek demonstrated the possibility of development at low cost. Regulations need to be eased. Last year, our government enacted the 'Artificial Intelligence Basic Act,' which integrated and organized 19 initial bills but resulted in many regulations. Since regulation first can slow development, reconsideration is necessary. If regulations are created first, even if highways are built, cars may not run. Europe, which regulated AI first, now finds itself in a passive market position, with French President Emmanuel Macron regretting, saying, "We have become mere consumers." We could face the same. In a world fiercely competing for AI dominance, starting with regulation can cause various side effects.
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