In response to a law drawn up by the European Union aimed at increasing its global market share of semiconductors, Seoul expressed belief that there will be no direct impact on South Korean businesses.

In a press release on Wednesday, the South Korean trade ministry assessed that a resulting increase in chip production facilities in Europe could offer South Korean businesses in materials, parts and equipment industries opportunities to expand their export market.

Noting that the European chip law does not contain a discriminatory clause against overseas chipmakers, the ministry said there will likely be no direct impact since South Korean firms currently do not operate plants within the EU.

The government plans to maintain communication with the domestic chip industry and monitor the EU's remaining enactment proceedings to prepare response measures while consulting with the EU to maximize local firms' opportunities.

On Tuesday, EU member nations agreed to pass the Chips Act, a plan offering 43 billion euros in subsidies and investment for the bloc's chipmaking facilities to raise the EU's production of semiconductors from the current nine to 20 percent of the world's total.