South Korea to Monitor Impact of New U.S. Tariffs on AI Semiconductor Chips in 2026

• How Is South Korea Responding to the U.S. Tariffs on AI Chips?
• What Are the Broader Implications of These Tariffs?
• Why Is Currency Stability a Concern for South Korea?
• How Does the $350 Billion Investment Deal Factor In?
• What’s Next for the Semiconductor Industry?
• *

South Korea’s Minister of Industry, Kim Jung-kwan, announced on January 15, 2026, that the government will closely monitor the newly imposed U.S. tariffs on advanced AI semiconductor chips to mitigate their impact on domestic manufacturers. While the 25% tariff is expected to have minimal immediate effects, concerns linger over potential future escalations and their implications for the global semiconductor supply chain. Meanwhile, South Korea remains vigilant about currency stability amid its $350 billion investment commitment to the U.S.

How Is South Korea Responding to the U.S. Tariffs on AI Chips?

South Korea’s Ministry of Industry confirmed that Minister Kim Jung-kwan met with representatives from the domestic semiconductor sector to discuss the 25% tariff imposed by the U.S. on specific AI chips, including NVIDIA’s H200 and AMD’s MI325X processors. The minister reassured industry leaders that the tariffs WOULD not significantly affect South Korean firms, as they exclude chips used in U.S. data centers and startups. However, the White House’s fact sheet hinted at possible higher tariffs to incentivize domestic semiconductor production, raising uncertainty for exporters.

What Are the Broader Implications of These Tariffs?

The U.S. Commerce Department’s Section 232 investigation justified the tariffs as a national security measure, citing excessive reliance on imported semiconductors. The report suggested a compensatory tariff scheme favoring companies investing in U.S.-based production. This follows earlier threats of tariffs as high as 300% on imported chips, underscoring the Biden administration’s push for self-sufficiency. For South Korea, the stakes are high—its semiconductor industry accounts for nearly 20% of total exports, per TradingView data.

Why Is Currency Stability a Concern for South Korea?

Beyond tariffs, Seoul is monitoring U.S. Treasury Secretary Scott Bessent’s remarks on the won’s recent depreciation. Vice Prime Minister Koo Yun Cheol emphasized that currency stability is critical for bilateral trade and the $350 billion investment pact with the U.S. The Treasury’s report labeled the won’s volatility "excessive," prompting both nations to reaffirm commitments to exchange-rate stability—a key pillar of their economic partnership.

How Does the $350 Billion Investment Deal Factor In?

Finalized in October 2025, the agreement ties South Korea’s annual $200 billion cash payments to the U.S. to reduced tariffs. Analysts, including the BTCC team, note that the deal’s success hinges on maintaining stable exchange rates and avoiding trade disruptions. "The won’s stability isn’t just about economics—it’s about trust," remarked a senior Finance Ministry official.

What’s Next for the Semiconductor Industry?

With the U.S. prioritizing domestic chip production, South Korean firms like Samsung and SK Hynix face pressure to diversify supply chains. Historical data from CoinMarketCap shows that semiconductor-related stocks have been volatile since the tariff announcement. Industry leaders urge proactive measures, including increased R&D and strategic partnerships, to navigate the shifting landscape.

*

Will the U.S. impose higher tariffs on semiconductors?

While the current tariff is 25%, the WHITE House has floated the idea of rates up to 300% to boost local manufacturing. This remains speculative but aligns with broader protectionist trends.

How will the tariffs affect South Korea’s economy?

Short-term impacts are limited, but prolonged trade tensions could disrupt supply chains and dampen export growth, particularly in the tech sector.

What’s the timeline for the $350 billion investment?

South Korea’s payments are structured annually through 2030, contingent on tariff concessions and economic cooperation.