“Significant problem” with subsidy criteria
Plan for meeting government and parliament officials
On the 8th (local time), Ahn Deok-geun, head of the Trade Negotiation Headquarters of the Ministry of Trade, Industry and Energy (pictured), said about the controversy surrounding the subsidy payment standards of the US Semiconductor Support Act, “It could be quite a problem,” and secured a ‘safety device’ to reduce damage to Korean companies. announced that it would focus on
Ahn, who visited the United States, met with reporters at Dulles Airport near Washington that day and said, “The governments and industries of both countries have been trying to build a semiconductor supply chain together, but there are concerns (subsidy standards under the Semiconductor Act).”
When asked specifically what the government was concerned about, he said, “It is asking for excessive information or imposing a lot of restrictions on Chinese business.” Depending on how you implement it, it can be quite problematic.” At the same time, he said, “I will try to explain the business situation as much as possible and create a safety device as much as possible so that it will not be a problem at the stage of actually signing an agreement (with a Korean company).”
Previously, on the 28th of last month, the US Department of Commerce announced subsidy standards for companies building semiconductor production facilities in the US, subject to conditions such as sharing excess profits, restricting investment in China, allowing the Department of Defense to access semiconductor factories, and submitting detailed financial plans and production information. put up Criticism is pouring in that this is an excessive intervention in corporate management and a risk of leaking trade secrets.
When asked whether the Semiconductor Act is making it difficult for allies like the Inflation Reduction Act (IRA), which has raised controversy about discrimination against electric vehicles made in Korea, Director Ahn said, “(The Semiconductor Act) does not disadvantage only our companies, in fact, the United States It’s a little different because companies are subject to the same restrictions,” he said. At the same time, he said, “Because it is a situation that leaves an excessively bad precedent in investment policy, we will discuss intensively on that part.” said.
During his visit to the U.S., Director Ahn plans to meet with high-ranking officials of the U.S. administration, including the Department of Commerce, as well as members of the White House and Congress, and discuss issues such as the Semiconductor Act, the IRA, and “Article 232 of Steel,” which restricts exports of Korean steel products to the U.S.