South Korea's exports to the US and China tumbled by more than 8% in May, reflecting growing pressures from global trade tensions and supply chain realignments. Despite the broader slump, the country posted record-breaking semiconductor exports for the month, offering a rare bright spot amid mounting economic uncertainties.

South Korea's leadership in DRAM, NAND, and high-bandwidth memory (HBM) is becoming a strategic liability amid rising US-China friction. With SK Hynix and Samsung holding a combined 70% of DRAM and more than half the NAND market, the country anchors a supply chain vital for AI training and HPC workloads. A single disruption could trigger global price shocks and shortages, particularly in AI computing and mobile devices.