The South Korean finance ministry announced on Tuesday that the U.S. Treasury Department’s new rule limiting outbound investments in China’s high-tech sectors is expected to have a limited impact on South Korea’s economy. Effective Jan. 2025, the U.S. rule restricts U.S. persons and entities from investing in advanced semiconductors, artificial intelligence and quantum computing technologies in China, citing national security concerns.

Despite the limited domestic impact anticipated, the South Korean government stated it would work closely with local businesses and experts to evaluate any indirect effects. The ministry emphasized that it would maintain open communication with industry stakeholders to support any required adjustments.