The intensifying trade dispute between the United States and China, particularly within the semiconductor sector, has added layers of complexity for technology exporters worldwide. A notable player caught in this conflict is South Korea, a country whose economy relies heavily on its semiconductor industry and whose geopolitical ties with the US and China create an intricate balancing act.

South Korea maintains a commanding position in the global semiconductor market, with industry leaders Samsung and SK Hynix responsible for the majority of worldwide memory chip production. The notable impact of this industry on the nation’s economic health is apparent, as electronics form a substantial portion of South Korean exports, with estimates as high as 30%. Furthermore, the US and China represent South Korea’s two largest export markets, making any future export bans or stipulations by either side a costly adjustment for South Korean manufacturers.