The Export Control Response Center of Pacific Law Firm (BKL) announced on September 18 that it successfully concluded a seminar on "Semiconductor Export Control Issues and Corporate Response Strategies in Korea and the U.S." in collaboration with global law firm Reed Smith LLP on September 17.
Over 100 representatives from major domestic and international semiconductor companies and related organizations attended the seminar, reflecting significant interest. As semiconductor export controls have emerged as a key issue for businesses, the collaboration between Pacific and Reed Smith provided a platform to discuss the major challenges and response strategies faced by domestic companies based on their expertise in the regulatory environments of both countries.
With the ongoing technological rivalry between the U.S. and China, export controls surrounding semiconductors and advanced technologies are rapidly evolving. Domestic companies must now consider not only South Korea's strategic goods regulations but also the extraterritorial application of the U.S. Export Administration Regulations (EAR), making proactive management of export control risks increasingly important. The seminar aimed to examine the impact of these regulatory changes on domestic semiconductor firms and propose practical response strategies.
In the first session, Lee Ji-han, Director of the Korea Semiconductor Industry Association, presented on the "Current Status of the Domestic and Global Semiconductor Industry," highlighting changes in industrial policies among major countries. He noted that countries like the U.S., EU, Japan, and China are accelerating the restructuring of global supply chains by attracting advanced semiconductor manufacturing facilities through subsidies and tax incentives.
Lee explained that the uncertainty surrounding the business environment for domestic companies is growing due to the U.S. CHIPS Act, the EU Chips Act, and Japan's semiconductor support policies, along with collaborative export control efforts among allied nations.
The second session featured Hwang Ho-sung, head of the Export Control Response Center at Pacific, who provided an in-depth analysis of the latest export control regulations in Korea and the U.S. Hwang discussed the recent restructuring of control standards for high-performance integrated circuits and the inclusion of various semiconductor manufacturing equipment as new controlled items under domestic regulations.
Regarding the U.S. EAR, he highlighted key regulatory changes, including the Approved IC Designer system and the Affiliate Rule, and outlined major risks that companies need to proactively assess, such as item classification by semiconductor sector, extraterritorial application of FDPR, and deemed exports.
The third session featured Michael J. Lowell, a partner at Reed Smith, who discussed "U.S. Enforcement Trends and Defense Strategies for Semiconductor Companies." He presented recent enforcement cases related to U.S. export controls.
Lowell emphasized the importance of regular export control training, screening systems that include beneficial owners, internal escalation procedures to timely communicate compliance issues to management, and enhanced due diligence systems as responses to the intensified export controls by U.S. authorities. He noted that regulatory violations can impact not only criminal and administrative sanctions but also overall business operations, underscoring the necessity of establishing a proactive compliance framework rather than relying on reactive measures.
Meanwhile, the Export Control Response Center at Pacific provides expert advice across a range of export control issues, including strategic goods, overseas export controls, economic security, customs, and foreign exchange transactions. Leveraging collaboration among experts in international trade, export controls, customs, and criminal law, the center addresses complex regulatory risks that arise during companies' global business processes, from regulatory analysis and proactive compliance establishment to investigations, prosecutions, and international dispute resolution.
* This article has been translated by AI.
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