[Meeting the Ambassador to Korea] "Accelerating Semiconductor Supply Chain Restructuring... Korea and Taiwan Must Respond Together"

Liang Guangzhong, Representative of the Taipei Mission in Korea
At SEMICON Taiwan 2024 in Taipei
Heads of Korea's Two Major Semiconductor Companies, Samsung Electronics and SK Hynix, Deliver First Keynote Speeches
Taiwan Enacts Law to Protect Core Technologies from Overseas Outflow
Talent Acquisition Becomes a National Priority Amid Fierce Competition
Aims to Train 450,000 Convergent Talents in Fields Including AI

Ryang Kwangjung, Representative of the Taipei Mission in Korea, is being interviewed by Asia Economy on the 9th. Photo by Taipei Mission in Korea

"In the competition for semiconductor leadership, Korea and Taiwan are not simply rivals but cooperative partners who can move forward together."

Liang Guangzhong, Representative of the Taipei Mission in Korea, emphasized in an interview with Asia Economy on the 9th that the two countries can respond together to the global supply chain restructuring trend by leveraging their complementary strengths. He noted the need to broaden the scope of cooperation in various ways, such as joint product and technology development, strategic alliances, and entry into third-country markets.

As an example, he introduced the case of "SEMICON Taiwan 2024," an international semiconductor exhibition held in Taipei, Taiwan, in September last year. The event drew industry attention simply because the heads of Korea’s two major semiconductor companies, Samsung Electronics and SK Hynix, delivered keynote speeches together at the semiconductor event in Taiwan. It was also interpreted as a sign of the growing international stature of Taiwanese semiconductor company TSMC. At the time, the head of SK Hynix's AI Infrastructure division stated, "Although artificial intelligence (AI) and semiconductors are leading global trends, they still account for less than 1% of the world’s gross domestic product (GDP), and only Taiwan and Korea are investing massive resources." He proposed that the two countries address future technological development challenges together through cooperation in their semiconductor industries.

Beyond semiconductors, Korea and Taiwan share the commonality of being democracies with export-driven economic structures. Thanks to the power of K-content, such as the popular TV program "Grandpas Over Flowers" and YouTuber "Pani Bottle," the emotional distance between Korea and Taiwan is closer than ever. As of 2024, bilateral trade volume reached $64.5 billion (about 90 trillion won). In fact, Taiwan is Korea’s fifth-largest trading partner, while Korea is Taiwan’s fourth-largest. However, due to complex international circumstances, diplomatic and security relations between the two countries have not kept pace with private-sector exchanges.

Meanwhile, following the inauguration of President Donald Trump in January this year, tensions between the US and China have reached their peak. As the two G2 powers continue to clash over global hegemony, peace in East Asia is also under threat. Representative Liang stressed that cooperation among democratic allies is essential in such unstable international circumstances. He stated, "The peace and prosperity of the Taiwan Strait and the Korean Peninsula are closely linked," and added, "Given their geographical proximity, the relationship between the two countries is so close that it fits the saying 'If the lips are gone, the teeth will be cold.'" The following is a Q&A.

-You first took office in Korea in 2022. What do you consider your greatest achievement?

△It is the agreement between Taiwan and Korea to prevent double taxation and tax evasion on income tax. This agreement took effect in January 2024. It is the 35th income tax agreement signed by Taiwan and the second such agreement with a Northeast Asian country, following Japan. It is expected to significantly contribute to enhancing industrial cooperation and technological exchange between the two countries.

-Recently, Korea has undergone political upheaval, including the impeachment of the president and an early presidential election. In your view, what is the area with the greatest potential for cooperation between Korea and Taiwan under the new administration?

△Taiwan and Korea are countries with active practical exchanges. In terms of economy and trade, the bilateral trade volume between Korea and Taiwan reached $64.5 billion (about 90 trillion won) in 2024. In tourism, the number of tourists visiting each other's countries reached 2.47 million in 2024. In particular, both Taiwan and Korea are key players in the global semiconductor industry. While there is competition in certain areas, I believe that complementary cooperation is possible in supply chains, technology standards, and raw materials. I also hope to see strengthened exchanges and cooperation in emerging industries such as AI, electric vehicles, and green energy transition.

-In March this year, Taiwan extended its anti-dumping tariffs on Korean stainless steel until March 17, 2030. What is your position on this, and what are your prospects for future trade relations between the two countries?

△According to investigations by Taiwan's Ministry of Finance and Ministry of Economic Affairs, it was found that removing the anti-dumping tariffs on Korean stainless steel could lead to continued or renewed dumping activities and harm to domestic industries. Accordingly, the Ministry of Economic Affairs determined that maintaining the existing anti-dumping tariffs would not have a significant negative impact on the overall national economy and decided to extend the current rates. Looking ahead, Taiwan and Korea face similar challenges in terms of political situations and economic development. While the two countries maintain a relationship of both competition and cooperation, I believe that by expanding bilateral investment and strengthening industrial cooperation based on complementary industrial structures, we can develop a mutually beneficial trade relationship.

-Amid the major trend of global supply chain restructuring, can the two countries cooperate more in semiconductors and technology?

△Taiwan and Korea have different strengths in the semiconductor industry. Taiwan is competitive in packaging, testing, foundry (semiconductor contract manufacturing), and design, while Korea is strong in memory semiconductors. SEMICON Taiwan 2024, held in Taiwan last year, was a representative example of a turning point in this trend. Lee Jungbae, President of Samsung Electronics' Memory Business, and President Kim attended in person, drawing significant attention. It was also a historic moment, as it marked the first time Korea’s major semiconductor companies visited Taiwan to express their willingness to cooperate. At the event, President Kim emphasized, "Only by joining forces can the semiconductor industries of Korea and Taiwan overcome the technological development challenges they face."

It is known that TSMC and Samsung Electronics are jointly developing the next-generation high-bandwidth memory (HBM), HBM4. Due to the increasingly complex design and production environment of HBM4, driven by evolving customer demands, Samsung Electronics chose to cooperate with TSMC to expand its customer base. In addition, Samsung Electronics has officially joined the 3D Fabric Alliance led by TSMC. This demonstrates that the semiconductor companies of both countries are engaging not only in competition but also in practical and strategic cooperation.

Liang Guangzhong, Representative of the Taipei Mission in Korea. Photo by Taipei Mission in Korea

-In Korea, there are growing concerns about the outflow of core technologies and IT talent overseas. Taiwan is expected to face similar issues. What measures are being taken?

△In March this year, TSMC announced an additional investment of $100 billion (about 146 trillion won) in the United States, raising concerns about the possible outflow of Taiwan’s core technologies. In response, the Taiwanese government prepared an amendment to Article 22 of the "Industrial Innovation Act" to protect the country’s core technologies, which passed the National Assembly in April. This provision stipulates that companies intending to make overseas investments above a certain amount in specific countries or regions, especially in industries or technologies such as semiconductors, must obtain prior approval from the central government.

Globally, competition for talent has become increasingly fierce. Amid the trends of digital technology advancement and the transition to carbon neutrality (net zero), the gap between the demand for talent and its supply in industrial development is becoming more pronounced. In response, the Taiwanese government has made "investment in people" a national strategic priority, aiming to realize President Lai Ching-te’s national vision of "innovation and prosperity" and accelerate the development of an innovation-based economic model.

-Expanding the training and supply of IT talent, including AI, is one of Korea’s key challenges. What is Taiwan doing in this regard?

△The Taiwanese government is taking proactive measures. In December last year, Premier Cho Jungtai announced a plan for relevant ministries, including the Ministry of Economic Affairs and the National Development Council, to work together over the next four years to train 450,000 convergent talents in fields such as AI. He emphasized, "The word 'TAIWAN' contains both 'IT' and 'AI.' You cannot describe Taiwan without IT and AI." To this end, in addition to existing integrated support policies, the Taiwanese government plans to include AI-related investments in tax credits through legislative amendments in the second half of this year. Furthermore, it is actively encouraging global semiconductor and AI leaders to establish R&D bases in Taiwan. The Ministry of Economic Affairs is collaborating with industry associations, global companies, universities, and vocational training institutions to develop industry-specific AI education programs. The goal is to train 200,000 AI professionals by 2028 and support the adoption of AI by companies to raise the AI utilization rate in manufacturing to over 50%.

-If there is a key point or message you would like to emphasize regarding Korea-Taiwan relations, please share it.

△The international situation is extremely unstable. In such times, cooperation among democratic allies is crucial. Taiwan seeks to build a "community of peace" with democratic countries around the world to effectively deter war and realize peace based on tangible strength. Going forward, we will continue to expand exchanges and cooperation with countries that share our values and ideals. Through this, we aim to jointly confront the challenges of authoritarianism and enhance the resilience and sustainability of global democracy.