Zero percent quota tariff to be applied to key semiconductor parts

Zero percent quota tariff will be applied to neon, xenon, and krypton, which are used for semiconductor-related processes, starting April. The South Korean government has decided to provide support to businesses struggling with soaring prices caused by supply issues from Russia’s invasion of Ukraine.

“Zero percent quota tariff will be applied from April to neon, xenon, and krypton, whose supplies are highly dependent on Russia and Ukraine,” said Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, during an emergency economy meeting of the central response headquarters on Thursday. The materials’ current quota tariff is 5.5 percent.

The Ministry of Economy and Finance also decided to increase the volume of barley replacing maize feed eligible for tariff benefits from 40,000 tons to 250,000 tons. For pollack, which is also highly dependent on Russia for supply, the government’s reserve of 11,595 tons will be released at an appropriate timing.

The government also provided a guideline to use a local business account of a South Korean bank in Russia for the remittance issues caused by financial sanctions on Russia. It was also informed that the Ministry of Foreign Affairs’ quick overseas remittance system for diplomatic offices could be used. Once a remitter in South Korea deposits money into the Ministry of Foreign Affairs’ account, the South Korean Embassy in Russia will transfer money to a local remittee.

“Some shocks on the real economy are found as export to Russia and Ukraine decreased in March and inflation pressure increased due to rising oil prices. It is concerning that the impact may be magnified if the situation prolongs,” Deputy Prime Minister Hong Nam-ki said.


kalssam35@donga.com