Concerns Over CHIPS Act Subsidy Reduction Delivered
Visits to Texas, Tennessee, and Arkansas
Local Korean Companies Join to Present Suggestions
Economic Cooperation Delegation to Be Dispatched to Washington in May
Amid the Trump administration's second term signaling the abolition of semiconductor subsidies, the Korea International Trade Association (KITA) visited three southern U.S. state governments to request the resolution of management uncertainties faced by Korean companies.
Yoon Jin-sik, chairman of KITA, visited Texas, Tennessee, and Arkansas from the 19th to the 21st (local time) to conduct outreach activities targeting state governments. Korean companies operating in these regions accompanied the delegation to communicate local management difficulties and listen to the state governments' response plans, facilitating two-way communication.
KITA is focusing not only on outreach activities centered on the federal government but also on expanding contact points with individual state governments where companies have actually entered. Especially in the southern region, which is a stronghold of the Republican Party, meetings with influential figures emphasized the investment achievements and regional contributions of Korean companies, requesting the creation of a friendly investment environment.
On the 19th, Chairman Yoon met with Texas Governor Greg Abbott to convey Korean companies' concerns about the reduction of subsidies under the CHIPS Act, stating, "The greatest risk in corporate activities is uncertainty," and emphasizing, "Even if policies change, the commitments made by the previous administration must be continuously implemented for companies to invest with confidence."
Yoon Jin-sik, Chairman of the Korea International Trade Association, is meeting with Texas Governor Greg Abbott on the 19th. Photo by Korea International Trade Association
In response, Governor Abbott said, "Korean companies investing in Texas are very important partners," adding, "We are closely monitoring how former President Trump's policy changes will affect us, and we will actively consider various support measures at the state level through a Texas version of the CHIPS Act to reduce uncertainty."
On the 20th and 21st, Yoon held consecutive meetings with Stuart McWhorter, Commissioner of the Tennessee Department of Economic and Community Development, and Hugh McDonald, Secretary of Commerce for Arkansas. At the meetings, Chairman Yoon said, "The federal government's tariff measures and subsidy reduction policies could reduce the investment incentives of Korean companies that significantly contribute to job creation in these states," urging, "State governments should more actively convey on-site opinions to the federal government."
Commissioner McWhorter responded, "The voices of Korean companies are very important in Tennessee," and stated, "Since the governor and senators have close ties with former President Trump, we will effectively communicate corporate concerns."
The delegation was accompanied by local companies such as OCI (Texas), LG Electronics, LG Chem, and Hankook Tire (Tennessee), which introduced their business status and requested support such as expansion of industrial water and power infrastructure and expedited processing of permits.
Chairman Yoon said, "Outreach activities targeting state governments as well as the federal government are now essential," and added, "We plan to strengthen networks so that state governments recognize tariff and subsidy issues as regional matters directly linked to employment and can raise their voices."
Meanwhile, KITA plans to dispatch an economic cooperation delegation to Washington D.C. in May to continue outreach activities targeting the federal government.
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