The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Oct. 29.
Trump’s tariff proposals raise red flags for SK, Samsung
Former U.S. president and Republican presidential nominee Donald Trump criticized the Biden administration’s CHIPS and Science Act, claiming it subsidizes “rich companies” like Samsung, SK Hynix, and TSMC to build chip companies in the U.S. He proposed imposing tariffs on imported semiconductors to encourage local production, comparing this to tariffs on auto imports. Trump’s stance on China suggests that semiconductor sanctions will continue, but his proposed tariffs introduce new uncertainties for an industry that relies on tariff-free trade under the 1997 WTO Information Technology Agreement (ITA). If elected, Trump may classify advanced semiconductors as strategic assets, imposing tariffs despite existing trade agreements, which could lead companies that have invested billions under the CHIPS Act to rethink their plans.
South Korea taps emergency funds to address tax shortfall
The South Korean government plans to draw up to 16 trillion won from various funds, including the Exchange Equalization Fund (EEF), to address a nearly 30 trillion won tax revenue shortfall. This marks the second consecutive year the government has tapped the EEF, following last year’s record 56 trillion won deficit. While the government assures that EEF reserves are sufficient, experts worry about using funds intended to help stabilize the foreign exchange market, especially amid growing global uncertainties like the U.S. election and Middle East tensions. Around 14 to 16 trillion won will be sourced from the EEF, National Housing and Urban Fund, and Public Capital Management Fund, according to the Ministry of Economy and Finance.
China detains first South Korean on alleged espionage charges
A South Korean national residing in China has been detained on charges of espionage, marking the first case a Korean was arrested under China’s revised anti-espionage law, which took effect in July last year. The 50-year-old man, identified as Mr. A, was taken into custody in December on suspicion of leaking semiconductor-related information to South Korea, although he denies having access to critical technology. A former Samsung Electronics employee, he moved to China in 2016, working at several major semiconductor firms before starting his own business. South Korean Embassy in China said the embassy had provided consular assistance to Mr. A and his family since January.
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