Exclusive: U.S. Pressures South Korea on Semiconductor Investments, Citing Honam Project

[u/John3262005]

https://www.chosun.com/english/national-en/2026/08/25/YMY5UM56XNCW5LCFX72CTEJJZI/

Amid intensifying pressure from the U.S. government on South Korea to fulfill its investment commitments, it was reported on the 24th that the U.S. side recently demanded the South Korean government and companies invest in local memory semiconductor production facilities and supply memory chips. Unofficially, the U.S. reportedly expressed discontent over the government’s announcement of the 800 trillion Korean won-scale Honam Semiconductor Cluster project. The criticism stems from the perception that while the South Korean government actively supports domestic semiconductor investments, it remains passive regarding investments in the U.S.

A source from the ruling party stated, “The U.S. is urging South Korean semiconductor companies to invest in local memory chip factories and ensure stable supply of memory products,” adding, “The pressure to invest in semiconductors has grown significantly following the announcement of the Honam Semiconductor Mega Project.” This marks the first time the U.S. has referenced the government-led ‘mega-project’ while pressuring for investments. Another source noted, “The U.S. did not explicitly criticize the mega-project itself but expressed frustration over the delayed announcement of South Korean companies’ investment plans in the U.S.”

Such discussions reportedly occurred during Industry Minister Kim Jung-kwan’s four-day visit to the U.S. from the 16th for investment negotiations. However, the government maintains that the U.S.’s semiconductor investment demands are separate from the ‘350 billion dollars’ investment agreement signed between the two countries last year. The government plans to announce the first U.S. investment project in September.

Concerns are growing among domestic semiconductor companies due to the U.S.-driven investment pressure. If the demand for investments in U.S. semiconductor facilities is formalized alongside the 800 trillion Korean won Honam Semiconductor Cluster project, it could impose a dual burden on local firms. Following SK Group Chairman Chey Tae-won’s private dinner with President Lee Jae Myung on the 20th, it was reported that Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun are also scheduled to hold consecutive meetings with the president.

Meanwhile, Foreign Minister Cho Hyun held a phone call with U.S. Secretary of State Marco Rubio late that day to discuss key bilateral issues, including South Korea’s investments in the U.S. The conversation reportedly covered security consultations between the two countries regarding the introduction of nuclear-powered submarines and securing uranium enrichment authority.