U.S.-South Korea Trade Talks: What’s next for the semiconductor industry?

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.

Tonight, we turn our attention to U.S.-South Korea trade relations, with a specific focus on the semiconductor sector.

As both nations prepare for the upcoming '2+2' trade talks, key industries such as the automotive, steel, and semiconductor sectors are set to take center stage.

With rising tariffs, trade imbalances, and increasing geopolitical tensions, South Korea's semiconductor industry faces critical challenges.

With the U.S. looking to expand local production, how should South Korea respond to ensure its semiconductor sector remains competitive in the global market? And what steps should companies take to navigate these uncertain times?

To explore more on this, we connect to Sung Soo Eric Kim, founder & CEO of Datacrunch Global and adjunct professor at Yonsei Graduate School of Business. Welcome.

Also joining us is William Brown, a former member of the board of directors at the Korea Economic Institute of America, and the principal of NAEIA.com. Great to have you.

(KIM) 1. Let's begin with Prof. Kim. So the upcoming '2+2' trade talks are expected to address issues such as tariffs on automotive and steel products, and semiconductors. How likely do you think it is that South Korea will be able to negotiate a reduction or removal of these tariffs, specifically in the semiconductor sector?

(BROWN) 2. With the U.S. seeking to expand its local production in key sectors such as semiconductors, what incentives or proposals should South Korea present during these talks to ensure its own semiconductor industry remains competitive and benefits from the negotiations?

(KIM) 3. Given that South Korea is about to experience a political transition, Prof.Kim, how should the current government approach these trade talks to secure the best possible outcome for its semiconductor industry, especially considering the next administration may have different priorities?

(BROWN) 4. On the topic of tariffs, the U.S. has indicated it will impose tariffs on South Korean semiconductors. Bill, what potential effects do you foresee this having on the South Korean economy, and what steps should South Korean companies take to adjust to these changes?

(KIM) 5. Considering the growing uncertainty around global trade Prof. Kim, how should South Korean semiconductor companies adapt their production strategies to avoid the impact of these tariffs and maintain their competitive edge in the global market?

(BROWN) 6. The semiconductor industry plays a crucial role in both the U.S. and South Korean economies. In your opinion, how important is it for South Korea to maintain strong ties with major American tech companies like Intel, Nvidia, and Qualcomm, particularly given the rising geopolitical tensions?

(KIM) 7. President Trump has expressed interest in tying U.S. military cost-sharing arrangements to the trade negotiations. What risks do you see in linking these national security concerns directly to trade talks, particularly in terms of the semiconductor sector?

(BROWN) 8. The U.S. has been focusing heavily on addressing trade imbalances and has pressured countries like South Korea to adjust their trade structures. What actions should South Korea take to address U.S. concerns while protecting its semiconductor industry and other economic interests?

(BROWN) 9. Given the ongoing political and economic pressures surrounding U.S.-China trade tensions, how should South Korea strategically navigate these negotiations to avoid being caught in the middle of the two superpowers, especially when it comes to its semiconductor exports to both countries?

(KIM) 10. In light of the recent reduction in semiconductor exports to China due to U.S. trade restrictions, what specific steps should South Korea take to ensure its semiconductor industry remains resilient and continues to thrive, both through market diversification and by strengthening its trade agreements with the U.S.?