Trade minister Cheong In-kyo said South Korean companies will receive subsidies from the U.S. under the nation's CHIPS Act and that the U.S. government is expected to make a related announcement soon.

Upon arrival in Washington on Tuesday to attend the South Korea-U.S. joint committee on the bilateral free trade agreement, Cheong said while it is certain that South Korean companies will receive the subsidies, the scale of the subsidies remains to be seen.

The minister added that the U.S. government is likely to make the announcement at the end of this month, including the specific amount of the subsidies.

Cheong said there are guidelines set by the U.S. regarding the scope of subsidies, and therefore it is difficult to predict whether there will be any disadvantages to South Korean companies.

Under the CHIPS Act, the U.S. Department of Commerce provides subsidies for semiconductor production, as well as research and development, to encourage semiconductor companies to invest in facilities in the U.S.