South Korea's tech exports surge as tariffs loom

In March 2025, South Korea experienced a significant increase in its tech exports as companies rushed to supply the U.S. market ahead of impending tariffs. The country's Ministry of Science and ICT announced a remarkable 24 percent rise in overall exports compared to the previous month, with a notable 19.4 percent increase in exports specifically to the United States. This surge was largely fueled by the burgeoning demand for high-bandwidth memory essential for artificial intelligence applications, coupled with a desire among manufacturers to restock ahead of price hikes due to new tariffs. The Ministry also reported notable gains in exports of displays and smartphones, attributing this to consumers and businesses working to acquire devices before the increase in costs took effect. Analysts from IDC supported these findings, highlighting a tariff-driven surge as buyers scrambled to upgrade their technology in response to tariffs that were expected to raise prices significantly. The situation in South Korea stands in stark contrast to developments in China where manufacturers adjusted operations in anticipation of the tariffs. Various plants, particularly those operated by Foxconn and Quanta, reported halted shipments to the U.S. market. As a result, several production lines are pausing, and workers have cited a dramatic reduction in available overtime, from over 80 hours a month to just 40 hours. This slowdown in Chinese manufacturing comes after the country faced challenges during the COVID-19 lockdowns, prompting Original Design Manufacturers (ODMs) to diversify their production bases to mitigate risks of reliance on a single country. Countries like India and Vietnam are emerging as potential alternatives to China, with Apple reportedly shifting a portion of its iPhone production to India due to lower tariffs compared to those imposed on Chinese goods. As Vietnam actively seeks a zero-tariff agreement with the USA, these shifting dynamics hint at a broader rearrangement of the global electronics manufacturing landscape influenced by geopolitical trade tensions. The future of factories in China remains uncertain as they grapple with reduced activity and anticipation of prolonged closures, affecting manufacturers and their workforce significantly.