South Korean President responds to chip tariff threat: If tariffs are raised by 100%, it will only make Americans pay for it themselves!

South Korean President Lee Jae-myung issued a strong response on Wednesday to the proposed U.S. tariffs on semiconductor imports, stating that the policy would ultimately drive up domestic prices in the United States.

At a press conference, Lee Jae-myung pointed out:

Given that semiconductor manufacturers from South Korea and Taiwan hold a monopoly position accounting for 80% to 90% of the global market, the imposition of a 100% import tariff by the U.S. is likely to significantly increase chip product prices in the United States, with most of the additional costs likely being passed on to U.S. prices.

This statement highlights South Korea's key position in the global semiconductor supply chain. Samsung Electronics and SK Hynix dominate the memory chip sector, while TSMC holds a monopoly in the chip foundry market. South Korea’s exports in 2025 reached a record high of $709.4 billion, a year-on-year increase of 3.8%, with semiconductor shipments surging 22% due to strong demand fueled by AI investment.

According to CCTV News, the White House announced on the 14th of this month that starting from the 15th, a 25% ad valorem tariff will be imposed on certain imported semiconductors, semiconductor manufacturing equipment, and derivative products. According to CCTV News, U.S. Secretary of Commerce Gina Raimondo subsequently threatened that if South Korean memory chip makers do not increase production in the United States, they could face tariffs as high as 100%.

Lee Jae-myung: Safeguards have been implemented under the trade agreement with the U.S.

Lee Jae-myung emphasized that South Korea has implemented safeguard measures under its trade agreement with the United States to ensure that Korean chip manufacturers are not placed at a disadvantage compared to other global competitors.

South Korea’s semiconductor export data shows its dependence on the global market. Out of total semiconductor exports amounting to $173.4 billion, exports to the U.S. account for only 8%. This structure suggests that the actual impact of U.S. tariffs may be limited.

Lee Jae-myung also addressed the weakening of the Korean won, stating that Korean authorities expect the won to rise to about 1,400 won per U.S. dollar within one to two months. The President warned that domestic policies alone are insufficient to stabilize the foreign exchange market, as the weakening won is partly related to the depreciation of the yen, though the won’s performance is relatively better.

Lee Jae-myung stated that South Korea’s domestic stock market saw a 76% increase last year, making it the best-performing market globally, but remains undervalued. South Korea’s exports in 2025 reached record levels, mainly benefiting from a surge in semiconductor demand driven by AI investment.

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