Ahn Deok-geun, head of the Ministry of Trade, Industry and Energy’s Trade Negotiation Headquarters, who visited the United States, holds a correspondent’s meeting near Washington on the 9th (local time). Washington/Correspondent Yujin Kim
On the 9th (local time), Deok-geun Ahn, head of the Ministry of Trade, Industry and Energy’s Trade Negotiation Headquarters, said, “It should not lead to deepening corporate uncertainty, excessive management intervention, and an increase in the investment cost of Korean companies in the US in relation to the subsidy payment standards of the US Semiconductor Support Act, which is controversial. We actively raised the issue with the US side,” he said.
Headquarters Ahn met with Washington correspondents on the same day and related to the Notice of Support (NOFO) containing the subsidy application process and screening criteria for semiconductor investment companies, “The uncertainty of subsidy payment standards is not related to Korean companies’ investment in the United States and cooperation in the semiconductor supply chain between Korea and the United States. I emphasized that it is not desirable.” He also said, “We asked companies to ensure that there are no problems with the operation of their factories in China” regarding the “guardrail” (restriction on Chinese investment) regulations that may affect Samsung Electronics and SK Hynix, which have production facilities in China. He emphasized that there should be no negative impact on semiconductor supply and demand.”
In response to the South Korean side’s issue, the US side said, “Korea is one of the most important partners in semiconductor field cooperation,” and said that it would closely consult with the Korean government and companies during the subsidy application process, said Director Ahn.
The standards for subsidy payment under the US Semiconductor Act are subject to conditions such as sharing excess profits, restricting investment in China, allowing the Ministry of National Defense to access semiconductor factories, and submitting detailed financial plans and production information. this is growing
A high-ranking government official said, in particular, that the provision of ‘excess profit sharing’ is an “unprecedented condition.” “The United States’ requirements are unprecedented and do not meet international standards. We conveyed our concerns,” he said. This official said, “In discussions with the US side, we received assurances that we would clarify a large part of the agreement between the company and the Ministry of Commerce,” adding, “Several issues can be reasonably adjusted.”
Meanwhile, Director Ahn again requested that the detailed standards for battery parts and core minerals of the Inflation Reduction Act (IRA), which will be announced this month, reflect the position of the Korean government and industry. He also emphasized that companies should be able to secure the maximum amount of steel they need.
Ahn, who visited the US the day before, met with White House Deputy National Security Adviser Mike Pyle, members of the House Ways and Means Committee, and industry officials, and on the 10th he met with Deputy Secretary of Commerce Don Graves.