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KITA urges Republicans to keep CHIPS Act on U.S. trip

Published: 19 Mar. 2025, 16:53

LEE JAE-LIM
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Yoon Jin-sik, chair of the Korea International Trade Association, right, and Republican Rep. Young Kim of California take a commemorative photo after their meeting on March 14 in California. [KITA]

The head of the Korea’s trade agency met U.S. politicians to discuss economic cooperation and support for Korean businesses, while also raising concerns over the potential retraction of semiconductor subsidies that U.S. President Donald Trump recently mentioned.

The closed-door meeting was part of Korea International Trade Association (KITA) Chair Yoon Jin-sik’s outreach efforts aimed at strengthening ties with U.S. figures in states, including California and Arizona, where Korean businesses have a strong presence.

Yoon emphasized that Korean investments in the United States have totaled $160 billion over the past eight years since Trump’s first term in 2017 and urged congressional support in light of tariff hikes, reduction of subsidies for foreign investors and potential subsidy cuts that could affect Korean semiconductor investments in the U.S.

Republican Rep. Abraham Hamadeh of Arizona said that he is aware of industry concerns and noted that the administration is in active discussions regarding semiconductor investments in his congressional district. He predicted that the CHIPS Act will likely be “flexibly” amended rather than fully repealed, as Trump administration is aware of foreign investment-led projects in the United States.

Fellow Arizona Republican Rep. Andy Biggs described Trump’s tariff levies as a strategic move to address trade deficits, tax revenue, China containment and foreign relations. He reportedly said Korea’s station as a key U.S. trade partner and the FTA between the two countries will part of upcoming tariff discussions next month.

Trump’s trade policies are still in early stages and any repeal of the CHIPS Act or the Inflation Reduction Act would require congressional approval — the outline of what is to come would still take some time, Republican Rep. Young Kim of California said.

Yoon will next visit Texas, Tennessee and Arkansas to meet with state governors and economic officials, seeking state-level support for Korean businesses operating in the United States.

BY LEE JAE-LIM [[email protected]]