Hong Nam-ki and Yellen Meet Again After 3 Months... Will They Find a Solution to the US Semiconductor Confidentiality Demand?

Deputy Prime Minister Hong Visits U.S. to Attend G20 Finance Ministers Meeting and IMFC

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is seen greeting Janet Yellen, U.S. Secretary of the Treasury, during a meeting in Venice, Italy, last July.
[Image source=Yonhap News]

[Washington (USA) = Asia Economy Reporter Son Sunhee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, and Janet Yellen, U.S. Secretary of the Treasury, will hold their second face-to-face bilateral meeting on the 14th (local time). It has been about three months since their first meeting in July. Attention is focused on whether the two economic leaders will discuss the recent U.S. government's request for semiconductor-related confidential-level information from domestic companies such as Samsung Electronics and SK Hynix.

According to the Ministry of Economy and Finance, Deputy Prime Minister Hong will depart on the 12th to attend the G20 Finance Ministers and Central Bank Governors Meeting and the International Monetary and Financial Committee (IMFC) meeting held in Washington, U.S. During this visit, he is also scheduled to hold bilateral talks with the heads of the three major international financial institutions: the International Monetary Fund (IMF), the World Bank (WB), and the Inter-American Development Bank (IDB), as well as with U.S. Treasury Secretary Yellen.

The U.S. government's semiconductor confidentiality request has recently emerged as a major issue in Korea-U.S. security and economic relations. The government plans to respond to this issue by establishing a ministerial-level meeting body called the "Foreign Economic Security Strategy Meeting," chaired by Deputy Prime Minister Hong, which will include major economic ministries as well as the Ministry of Foreign Affairs and the National Security Council (NSC) of the Blue House. With the first meeting scheduled for mid-month, the meeting between the finance chiefs of Korea and the U.S. is attracting even more attention.

Recently, Taiwan's TSMC, the world's number one semiconductor foundry company, proactively announced its refusal to comply with the U.S. government's request, which is interpreted as easing some of the pressure on domestic companies to express their opinions. In addition, Deputy Prime Minister Hong and Secretary Yellen are expected to discuss ways to strengthen Korea-U.S. economic and financial cooperation, as well as current issues such as the Iranian won-denominated funds issue.

Meanwhile, at this G20 Finance Ministers meeting, the agreement on the "digital tax," which recently gained support from 136 countries in the OECD and G20 Inclusive Framework (IF), will also be reported. The related agreement is expected to be endorsed at the G20 Summit to be held in Rome, Italy, at the end of this month.

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