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Markets

South Korea, US in chip investment and tariff talks

Published 4 September 2026

South Korea and the United States are engaged in active negotiations over semiconductor investment and tariffs, with a senior Seoul official confirming that chip-related discussions are part of broader bilateral talks. The negotiations come as Washington signals plans for targeted tariffs on imported semiconductors, creating pressure for major South Korean manufacturers to expand production within the United States. A South Korean presidential official stated that semiconductors are among several investment-related issues under discussion, acknowledging that various disputes between the two nations are sometimes affecting each other. This linkage suggests that concessions in one area, such as chips, could be traded against progress in another, like defense. The talks follow an agreement reached by the two countries' presidents last year, under which South Korea committed $350 billion toward U.S. manufacturing investment in return for tariff terms no less favorable than those given to competitors with comparable chip trade volumes. U.S.

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