Presidential Office: "US Decides to Supply Equipment to Samsung and SK's China Factories Without Separate Approval" (Update)
China Designates Domestic Factories as 'Verified End Users' (VEU) Under Comprehensive Licensing
Choi Sang-mok, Chief Economic Secretary, "Effectiveness Upon Notification... Major Trade Issues Temporarily Resolved"
The U.S. government has made a final decision to supply American semiconductor equipment to the factories of Samsung Electronics and SK Hynix in China without any separate approval procedures or deadlines, the Presidential Office announced on the 9th.
Choi Sang-mok, Senior Secretary for Economic Affairs, held a briefing at the Yongsan Presidential Office in the afternoon and stated, "I understand that the related decision has also been notified to Samsung and related companies," adding, "This decision takes effect immediately upon notification."
This follows the recent indication from the U.S. administration, through export control authorities and the National Security Council (NSC) economic security dialogue channel, that Samsung Electronics and SK Hynix's semiconductor factories in China will be designated as 'Verified End Users' (VEU). VEU is a type of comprehensive license that allows exports only to pre-approved companies for designated items. Being included in the VEU means there is no need to obtain separate case-by-case approvals, effectively resulting in an indefinite suspension of U.S. export controls.
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Senior Secretary Choi evaluated, "This decision by the U.S. government signifies that the biggest trade issue for our semiconductor companies has been resolved for the time being." He added, "The uncertainty regarding the operation and investment of our semiconductor companies' factories in China has been greatly alleviated, allowing for a calm pursuit of global management strategies in the long term," and noted, "This achievement is the result of the government and companies working together on the solid foundation of the strengthened Korea-U.S. alliance under the Yoon Suk-yeol administration."
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