Story perspectives

South Korea Shields Chipmakers Amid U.S. Tariff Threat

1/21/2026

Summary

Story summary

South Korean President Lee Jae Myung said Seoul has measures to shield its chipmakers from potential U.S. tariffs on semiconductor imports.
He warned that a proposed 100% U.S. duty could raise prices in the United States because South Korean and Taiwanese firms dominate the market.
South Korea posted record exports of $709.4 billion in 2025 from semiconductor shipments that rose 22%.
The won is weakening.
He called for renewed diplomatic efforts with North Korea, despite stalled talks since 2019.

History

Historical Context

South Korea's semiconductor industry has rapidly evolved since the 1980s, with Samsung and SK Hynix leading global production. In 2022, semiconductors accounted for 19% of South Korea's exports, totaling $129 billion. By 2025, exports surged to $709.4 billion, driven by a 22% increase in shipments, amidst rising geopolitical tensions and potential U.S. tariffs that threaten this critical economic sector.

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Story summary

South Korean President Lee Jae Myung said Seoul has measures to shield its chipmakers from potential U.S. tariffs on semiconductor imports.
He warned that a proposed 100% U.S. duty could raise prices in the United States because South Korean and Taiwanese firms dominate the market.
South Korea posted record exports of $709.4 billion in 2025 from semiconductor shipments that rose 22%.
The won is weakening.
He called for renewed diplomatic efforts with North Korea, despite stalled talks since 2019.

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