South Korea's ruling party plans chips law to avert Trump threat

Yoon worries U.S. tariffs on Chinese imports could force Korean makers into price war

20241111 South Korea's Yoon

South Korean President Yoon Suk Yeol last week warned of the risks stemming from Trump's threat of steep tariffs on Chinese imports. © Reuters

SEOUL (Reuters) -- South Korea's ruling party proposed a special chips act on Monday to give chipmakers subsidies and an exemption from a national cap on working hours, to tackle potential risks from measures threatened by incoming U.S. President Donald Trump.

The semiconductor industry is critical for the trade-dependent economy, Asia's fourth biggest, with chips making up 16% of total exports last year.

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