The government said on Wednesday that it will hold discussions with U.S. officials to fully reflect South Korean companies' position in implementing the U.S. Chips and Science Act.

The Ministry of Trade, Industry and Energy issued the position after the U.S. Commerce Department announced conditions for subsidies under the 53 billion dollar act on Tuesday. 

The department has yet to release detailed conditions for a clause that restricts chip production in China for ten years for companies receiving the subsidies.

The act puts South Korean chip makers in a bind as it made it clear that the U.S. will offer subsidies for companies decoupling from China. 

Under the act, the U.S. government is scheduled to receive subsidy applications from companies planning to construct chip plants within the U.S. South Korea's Samsung Electronics and SK Hynix, both of which have chip facilities in China, are expected to apply for the subsidies.

Meanwhile, Meritz Securities said on Thursday that South Korean firms have to be wary of leaks in technology or information in the process of applying for U.S. subsidies.