South Korea has called on the United States to grant leniency to its companies in an ongoing investigation into imported polysilicon, warning that wide-ranging restrictions could harm both countries’ clean energy and semiconductor sectors.
According to a filing with the US Bureau of Industry and Security, Korea’s Ministry of Trade, Industry and Energy urged Washington to apply “flexible consideration” for Korean firms during its review under Section 232 of the US Trade Expansion Act of 1962.
The probe, launched on 1 July, is assessing whether low-priced polysilicon imports pose a national security risk.
“Korea is a net importer of high-quality polysilicon from the United States. At the same time, Korea and its companies have established a secure supply chain for polysilicon to US importers and US companies,” the ministry said.
“If import restrictions on polysilicon are introduced, we respectfully request that special consideration be given to allow for flexible application to Korean companies.”
Polysilicon prices have fallen sharply in recent years, largely due to China’s dominance in the sector.
IBK Securities reports that Chinese products, backed by state support, sell for around USD 5 per kilogram, compared with USD 18–25 for non-Chinese equivalents.
US officials have warned that such price pressures are causing domestic plant closures.
The ministry noted that restrictions could hinder US ambitions to expand domestic solar and semiconductor manufacturing, citing Hanwha Qcells and OCI Holdings as Korean firms active in US projects.
“Broadly applied tariffs or other import restrictions… risk disrupting supply chains that are important to both economic and national security,” it added.
Both companies said their supply chains avoid low-cost Chinese polysilicon. Industry sources have cautioned that sweeping measures could “face indirect damage” for allied companies investing in US manufacturing.
New development, same problem
This is not the first time organisations have pushed back against the Trump administration’s tariff rollout.
The tariffs are part of a wider initiative designed to encourage the use of domestic manufacturing, supply chains, and products.
The tariffs have included both the materials used in PV manufacturing and the solar panels themselves – primarily targeting Asian imports.
In April, the administration announced tariffs of over 3,000% on solar panel imports from various Southeast Asian countries in a bid to circumvent the influx of “subsidised, low-cost” products from China.
