Seoul: The government has pledged to exert comprehensive efforts to lessen the impact of the United States' recent decision to impose 25 percent tariffs on specific semiconductor imports, with a particular focus on strategies to support South Korean chipmakers. This decision came after an emergency meeting was held on Thursday, as reported by officials.

According to Yonhap News Agency, the emergency meeting, led by Industry Minister Kim Jung-kwan, was convened shortly after the Trump administration's announcement of a two-phase plan targeting imports of semiconductors, semiconductor manufacturing equipment, and related products. This plan includes a 25 percent tariff on certain artificial intelligence (AI) chips that are imported into the U.S. and subsequently reexported, along with a broader tariff strategy and a tariff offset program designed to incentivize U.S. semiconductor production.

In response to Washington's proclamation, which also addresses imports of processed critical minerals and their derivatives, the Ministry of Trade, Industry and Resources has promised to make "all-out" efforts to mitigate the effects on South Korea, while maintaining open lines of communication with the impacted industries.

Trade Minister Yeo Han-koo, who was scheduled to return from a weeklong visit to the U.S., has opted to prolong his stay to further evaluate the domestic implications of the U.S. proclamations. Concurrently, Vice Trade Minister Park Jung-sung in Korea planned a phone discussion with U.S. Under Secretary of Commerce for Industry and Security Jeffrey Kessler to convey Korea's apprehensions.

The ministry also conducted a meeting with leading chipmakers, including Samsung Electronics Co. and SK hynix Inc., to collect their perspectives on the issue. Post-meeting, the ministry conveyed that the initial phase of the U.S. chip import adjustment plan is anticipated to have a limited effect on Korean companies due to its focus on a narrow selection of advanced computing chips, such as Nvidia's H200 and AMD's MI325X.

Nevertheless, local chipmakers voiced concerns over uncertainties associated with the tariff offset program in the plan's second phase, urging the government to engage actively with the U.S. on this matter. Under the bilateral tariff agreement established last year, the U.S. consented to provide Korea with semiconductor tariff rates that are "no less favorable" than those granted to its direct competitors.