US seeks share of Korean chipmakers' 'excess profits'(koreatimes.co.kr) |
US seeks share of Korean chipmakers' 'excess profits'(koreatimes.co.kr) |
> “[The claim] was based on a rationale that American companies purchased large volumes of Korean semiconductors and thus contributed to the Korean firms' earnings,” the source said. “So, if the Korean chipmakers’ partner firms in Korea are entitled to parts of the profits, the American ones are, too.”
If I'm understanding this correctly, the Korean firms are reinvesting their profits in local partners, and a US trade delegation is trying to induce them to invest similarly in US firms. "US seeks share of Korean chipmakers' 'excess profits'" implies transfers to the US federal government, like a special windfall tax, which doesn't appear to be the case here. (And it would be outrageous, of course...)
I would imagine a lot of pushback…
See also the story of TikTok.
At this point, doing business in the US is an existential risk to any company.
In theory that's illegal, though I've never seen a company get busted for it.
Edit: to be clear, the current admin is treating American companies like their property, demanding that foreign countries invest in our businesses because they made “excess profits” is only a single indirection to a windfall tax.
Also lol at the idea that these guys believe in the idea of “excess profits”. I’d put money down that they would never accept that framing for themselves.