(Bloomberg) -- The US Chips Act imposes a number of onerous demands and still harbors a great deal of uncertainty for companies hoping to benefit from it, South Korea’s trade minister said in Seoul on Monday.

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Lee Chang-yang, Korea’s minister of trade, industry and energy, set out three major concerns about the Chips and Science Act, a $50 billion plan that includes incentives for foreign chipmakers to set up factories within the US. Some of the specific requirements for it were set out last week, including the provision of childcare for workers and restrictions on investing in other countries or using funds from the Act to perform share buybacks.

South Korea is home to two of the biggest memory chipmakers in the world, Samsung Electronics Co. and SK Hynix Inc., and Samsung already has a $17 billion plant in development in Texas. The primary issue for companies, Lee said, is uncertainty: there are many preconditions to receive incentive funds and compliance will take much time and effort. He also pointed to requests for disclosure about management matters and the increased cost of investing in the US due to high interest rates and inflation.

The Korean government will work closely with the US to try and resolve the various uncertainties arising from the law as well as address the clauses that are burdensome to companies, Lee said. Those can be substantially alleviated and resolved through negotiations involving the companies, the minister added.

Korea will also strengthen its own support for its chips industry, Lee said.

Read more: South Korea Plans Bigger Tax Breaks to Boost Its Chip Sector

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