Minister Lee Jong-ho: "We Must Be Cautious About Joining the Chip4 Alliance"... Temperature Gap with Government and Ruling Party Positions

Minister Lee Jong-ho of the Ministry of Science and ICT (center) held his first press briefing since taking office on the 20th at the Seoul Press Center and stated that the decision to join the U.S.-led semiconductor alliance (Chip 4 Alliance) is "a matter to be decided carefully."

[Asia Economy Reporter Kim Bong-su] Minister Lee Jong-ho of the Ministry of Science and ICT expressed a cautious stance on whether to join the U.S.-led semiconductor alliance (Chip4 alliance), stating that "it is a matter to be carefully decided considering national interests and laws."

On the 20th, Minister Lee held a press conference at the Seoul Press Center and made these remarks. He said, "I have been deeply concerned after speaking with semiconductor industry officials who recently visited China," adding, "It is difficult to provide details as the process is ongoing, but we must make a clear-headed judgment on what benefits the national interest."

Minister Lee's concern stems from the significant role China plays in Korea's semiconductor industry. Last year, out of Korea's $128 billion semiconductor exports, about 39%, or $50.2 billion, were exported to China. The proportion of China in the total sales of Samsung Electronics and SK Hynix also exceeds 30%. Furthermore, both companies operate DRAM and NAND flash factories in China, so if relations deteriorate, the entire semiconductor industry could suffer a major blow.

Minister Lee said, "Although the Chip4 alliance is limited to semiconductors, when problems arise, we will have to choose one side (the U.S. or China), and it will also affect other industries," adding, "We must be cautious considering these aspects."

This position of Minister Lee shows a somewhat different tone compared to the government and ruling party, which have taken the stance of "joining first."

Yang Hyang-ja, Chairperson of the Special Committee for Strengthening Semiconductor Industry Competitiveness, said regarding the Chip4 alliance, "We should join first, but persuade China well and take the lead in negotiations," adding, "The special committee's position is that we cannot ignore the message of participating in the U.S. technology alliance." Chairperson Yang also stated, "Since we have such a significant influence in memory semiconductors, we must lead the alliance and negotiate so that Korea becomes an indispensable presence to both the U.S. and China."

On the opposition side, opinions emphasize that considering the economic aspect rather than the military aspect is most important regarding the Chip4 alliance. Seo Yong-joo, Senior Deputy Spokesperson of the Democratic Party of Korea, said on a broadcast, "We need to carefully consider what we can gain economically rather than militarily."

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