Issue Tariffs, export controls and rules of origin become decisive for Korean ICT firms

Summary

KISDI expects changes in the global trade environment and supply chain risk to be major variables that determine the medium and long-term growth of Korea's ICT industry. Tariff increases and export controls by major economies are raising production costs and forcing supply chain restructuring. US tariff hikes and tighter export controls in particular directly affect global ICT distribution channels and cost structures, making compliance with rules of origin and supply chain management decisive for corporate survival. The impact differs by product, since semiconductors gain from the AI boom but still face trade uncertainty. Displays, mobile phones and PCs are sensitive to tariffs and origin rules, so responding to margin pressure is urgent and production sites need to be diversified.