US Deputy Secretary of State: "I Believe South Korea Has Much to Do in the Semiconductor Alliance"

[Asia Economy Reporters Inho Yoo and Jieun Lee] Jose Fernandez, U.S. Deputy Assistant Secretary of State for Economic Growth, Energy, and the Environment, stated on the 17th that he "firmly believes South Korea has much more to do" regarding the U.S.-led semiconductor supply chain restructuring plan.

[Image source=Yonhap News]

Deputy Assistant Secretary Fernandez made this remark during his opening remarks at the 6th Korea-U.S. High-Level Economic Consultations (SED) held at the Ministry of Foreign Affairs building in Seoul on the morning of the same day. He said, "The semiconductor supply shortage caused by COVID-19 has drawn attention not only to the critical role semiconductors play in daily life but also to South Korea as an essential partner and leader in the global semiconductor supply chain."

He then praised South Korea's semiconductor industry for its world-class engineers, high quality, and transparent investment, expressing expectations that cooperation with South Korea would bring tremendous value. This reaffirmed the necessity of South Korea's key role in expanding global supply chains, including semiconductors.

In response, Choi Jong-moon, 2nd Vice Minister of Foreign Affairs, said in his opening remarks, "It is becoming increasingly difficult to separate security and geopolitical issues from science and technology matters," adding, "As allies, we will faithfully work together and seek opportunities to contribute."

At the meeting held that day, the Korean and U.S. governments discussed cooperation measures regarding the "Indo-Pacific Economic Framework" (IPEF) led by the Biden administration.

[Image source=Yonhap News]

During the meeting, which lasted over four hours, Deputy Assistant Secretary Fernandez explained IPEF, which focuses on supply chain expansion, infrastructure, digital economy, and decarbonization, aimed at countering China, and reportedly indirectly requested South Korea's participation.

Vice Minister Choi said, "The Indo-Pacific Economic Framework appears to be a comprehensive (umbrella) initiative," and added, "In this process, we will actively engage key stakeholders and industries essential to the success of such initiatives."

IPEF is a concept presented by U.S. President Joe Biden at the East Asia Summit last October. The Biden administration aims to launch IPEF early next year. Previously, Deputy Assistant Secretary Fernandez also exchanged views on IPEF during a meeting with Park Jin-gyu, 1st Vice Minister of Trade, Industry and Energy, the day before.

An official who attended the meeting said, "Deputy Assistant Secretary Fernandez put considerable effort into explaining the supply chain restructuring and infrastructure investment cooperation, which the U.S. has recently been focusing on," and added, "During the long period from the meeting to lunch, the positions of both countries on supply chains and infrastructure were thoroughly discussed."

In diplomatic circles, it is anticipated that South Korea's decision to join the U.S.-led Indo-Pacific Economic Framework will influence the Korean Peninsula situation, including diplomacy toward China.

The supply chain restructuring plan aims to establish supply chains excluding China, which has served as the "world's factory." For this, participation from key countries such as South Korea, Japan, and Taiwan is necessary.

Infrastructure investment targets developing countries, including ASEAN, and is interpreted as an attempt to counter China's expanding influence through its Belt and Road Initiative investments in developing countries.

A diplomatic expert said, "Supply chains are one of the most important topics for the U.S. right now, and the Indo-Pacific region and key allies like South Korea and Japan are top priorities," adding, "The Northeast Asian situation will change depending on the choices made by the South Korean government."

Meanwhile, Deputy Assistant Secretary Fernandez will meet with executives from various sectors such as infrastructure, batteries, and electronics in the afternoon and then conclude his three-day visit to Korea before departing.

This content was produced with the assistance of AI translation services.