Government: "US Approves VEU for Samsung Electronics and SK Hynix...Significantly Reducing Investment Uncertainty in China"

On the 13th (local time), the U.S. government designated the semiconductor factories of Samsung Electronics and SK Hynix in China as 'Verified End Users (VEU)' under the U.S. Export Administration Regulations, reducing the uncertainty surrounding investments by domestic semiconductor companies in China.

On the 17th, Ahn Deok-geun, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, told reporters, "The VEU system designates trustworthy companies within China and approves exports for designated items without separate licensing procedures or expiration periods through consultations with the companies," adding, "This has significantly alleviated the uncertainty related to the operation and investment of our semiconductor companies' factories in China."

Director General Ahn continued, "This achievement is the result of mobilizing all consultation channels centered on the Presidential Office and the Ministry of Trade, Industry and Energy to extend the one-year temporary measure, and close communication with companies," and explained, "The Korea-U.S. leaders have continuously reaffirmed their commitment to close cooperation on advanced industry supply chains and export controls centered on semiconductors."

Regarding the detailed guardrail regulations of the U.S. CHIPS and Science Act, which were finally announced on the 22nd of last month, he said, "It is possible to maintain and partially expand production facilities operating in China, and the allowance for technological upgrades of existing facilities has been clarified. 'Equipment' is excluded from the scope of facility expansion restrictions, clarifying routine equipment replacement as well," adding, "We will closely consult with the industry on related trends and continue cooperation with the U.S. government to strengthen the global semiconductor supply chain and guarantee our companies' investment and management activities."

Director General Ahn evaluated that the Comprehensive Economic Partnership Agreement (CEPA) between Korea and the United Arab Emirates (UAE), concluded on the 14th, will serve as a catalyst to accelerate the expansion of free trade agreements (FTAs) to other Middle Eastern countries. CEPA is a type of FTA that includes not only tariff reductions to expand market access for goods and services but also measures to strengthen cooperation and exchanges in various fields. The Korea-UAE CEPA is Korea's 24th free trade agreement and the first FTA concluded with a Middle Eastern country.

Director General Ahn said, "The elimination of crude oil import tariffs (3% over 10 years) is expected to secure cost competitiveness for the refining and petrochemical industries and reduce domestic fuel prices," and added, "Furthermore, the expansion of market access for Korea's key exports such as automobiles and parts, promising items (pharmaceuticals and cosmetics), and agricultural, livestock, and fishery products (beef, chicken, fresh fruits, ramen, etc.) is anticipated."

Ahn Deok-geun, Chief Negotiator of the Ministry of Trade, Industry and Energy, held a signing ceremony for the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) with Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates (UAE), on the afternoon of the 14th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, and took a commemorative photo.
[Photo by Yonhap News]

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