division | Key Contents | Basis and Source |
|---|---|---|
| Global IT Cycle | Strong demand for electrical and electronic products (especially servers, memory, and accelerators) driven by growing demand for AI. | Reuters, October 11, 2025, South Korea's October exports surge, driven by AI demand. Reuters |
| Domestic policy variables | Expanding Support for the Semiconductor and Electronics Industries (Trade Risk Response) | AP News May 2025, Expanding Semiconductor Support Package. AP News |
| External regulatory risks | The impact of export controls on equipment and advanced chips to China (volatility in equipment and component procurement) | FT 2025.09, China Equipment Licensing Reorganization. Financial Times |
While overall demand is favorable due to expanded AI investment, export controls against China and geopolitical variables are factors that increase short-term volatility in the supply and demand of equipment and parts .
item | Details | Data/Source |
|---|---|---|
| HS code | HS 85 (Electrical machinery & equipment) | UN Comtrade Overview. Comtrade |
| Main subcategories | 8517 (communication equipment), 8542 (integrated circuit), 8541 (semiconductor device), 8504 (power supply), etc. | Academic and Statistical Practices (HS85 Composition) |
| 2024 Import Volume (Estimated) | Approximately $123.8-124 billion (Korea's second-largest import item) | TradingEconomics/UN Comtrade, OEC. Trading Economics |
| Total import share | about 19.6% | Summary of Commercial Statistics. Global Import Export Data |
HS85 is a key axis of Korea's overall imports and is the basis for procurement of semiconductors/servers/network equipment and electronic components.
Ranking ('24) | Importing country (example) | characteristic | Risk Point |
|---|---|---|---|
| 1 | china | Diversification of intermediate goods and finished products | Geopolitical and regulatory linkage risks |
| 2 | vietnam | EMS/Module Procurement | Supply chain resilience is good |
| 3 | japan | Precision parts and equipment | Sensitivity to technical regulations and exchange rates |
| 4 | USA | High-performance components and servers | Synchronization with rapid price and demand changes |
| 5 | taiwan | IC/Components | Foundry and Supply Issues |
South Korea's electrical and electronic imports in 2024 will reach approximately $124 billion , with a significant concentration in top-tier countries (China, Vietnam, Japan, etc.). See the overall import rankings by OEC country (China's largest partner): China, $139.8 billion (total) . Trading Economics
characteristic | 2024 | Estimated for Q3 2025 | QoQ | analysis |
|---|---|---|---|---|
| Import amount ($ billion) | 124 | 31.4 | +2.1% | AI and server component strength |
| Lead time | Standard = 1.00 | 1.05 | ▲ | Specific equipment tight |
| Substitutability | middle | middle | = | Diversification in progress |
Despite the issues of control and equipment licensing against China, the company is diversifying risks by strengthening its lines in the US, Taiwan, and Japan .
Product group | Unit price trend | coterie |
|---|---|---|
| Server/Accelerator Components | stress | AI demand and high-performance memory demand |
| Communications and Networking | Consolidation~Strong | 5G/Data Center Expansion |
| Semiconductor devices/ICs | Honjo | Differential process and demand cycle |
High-performance component prices are rising due to the expansion of AI infrastructure . (Report on strong exports in October and November confirms strong semiconductor demand) Reuters
branch | pattern | Import Volatility Index (0–1) |
|---|---|---|
| Q1 | Adjustment of orders at the beginning of the year | 0.45 |
| Q2 | New model and CAPEX confirmed | 0.60 |
| Q3 | Imports increase in preparation for second-half production | 0.68 |
| Q4 | Year-end inventory adjustment and inventory management | 0.52 |
Traditionally, Q3 imports are relatively strong (preparing for mass production in the second half and year-end peak).
item | detail |
|---|---|
| tariff | Many tariffs are exempted or reduced when FTA is applied |
| Non-tariff | Export controls (especially against China) , certification and security regulations |
| Substitute | Expanding and diversifying domestic procurement (US, Taiwan, Japan, Vietnam) |
Changes in Chinese equipment and parts regulations are accelerating supply switching . Financial Times
aspect | evaluation | memo |
|---|---|---|
| Energy use | neutrality | Power consumption issues during the manufacturing process |
| Supply Chain Responsibility | importance | Increasing demand for ESG traceability of raw materials and minerals |
| Conversion contribution | middle | High-efficiency battlefields and data centers can contribute to improving efficiency. |
importing country | Political/Policy Risk (0–1) | Regulatory/Technological Risk (0–1) | Logistics Risk (0–1) | Trust Index |
|---|---|---|---|---|
| china | 0.55 | 0.62 | 0.35 | 0.57 |
| vietnam | 0.30 | 0.28 | 0.33 | 0.77 |
| japan | 0.28 | 0.35 | 0.25 | 0.78 |
| USA | 0.22 | 0.30 | 0.28 | 0.81 |
| taiwan | 0.26 | 0.34 | 0.32 | 0.76 |
Average Trust Index ≈ 0.74 (good) — Stability is on the rise due to increased weighting of the US, Japan, and Vietnam .
industry | Major companies | Utilizing income | note |
|---|---|---|---|
| Memory/System Semiconductor | Samsung Electronics and SK hynix | Equipment, IC, and components | Procurement considering China regulations |
| Network/Cloud | The three major telecommunication companies, Naver, and Kakao | Servers, switches, and accelerators | Expanding AI infrastructure |
| Home appliances/mobile | large electronics companies | Modules/Components | EMS Global Division of Labor |
Imports of high-performance components and infrastructure are also increasing due to the expansion of AI accelerator and server supply (NVIDIA's Blackwell mass supply plan) . Reuters
item | point | reason |
|---|---|---|
| semiconductor equipment | 77.5% dependence on the US, Japan, and the Netherlands ('22) | KITA Analysis (Comparison of Relative Dependency). ( Korea Times ) |
| Implications | Alternative procurement and lead times are key when restructuring regulations against China. | FT report (license restructuring). ( Financial Times ) |
characteristic | Currently (2025 Q3) | Compared to the previous quarter (Δ%) | analysis |
|---|---|---|---|
| ΔImport | +1.8% | ▲0.9 | Strong demand for AI/server/network components |
| ΔPrice | +1.2% | ▲0.4 | Higher unit prices for high-performance components and equipment |
| ΔCountryShare | +0.6% | ▲0.3 | Slight increase in the weight of the US, Japan, and Vietnam (stability increases) |
| Trust Index | 0.74 | = | Medium to high level (supply diversification effect) |
| Forecast (3M) | +3.4% | ▲ | Reflecting year-end and beginning-of-year CAPEX, Q4/Q1 performance can be maintained. |
Summary: The AI cycle is driving HS85 imports on a gradual upward path . While regulatory and export control variables regarding China remain, procurement is being diversified along the axes of the US, Japan, Taiwan, and Vietnam, maintaining medium-to-high reliability.
division | Suggestion | Expected effect |
|---|---|---|
| 1 | Long-term contracts for core equipment and components + multiple vendors | Reduce lead time and price volatility |
| 2 | Bypass Routing by Regulatory Scenario | Ensuring continuity of procurement during reorganization of control over China |
| 3 | Fostering a domestic replacement and refurbishment ecosystem | Improving self-sufficiency in strategic items |
| 4 | Continuous monitoring of AI-based income indices | Optimizing Procurement and CAPEX Timing |
| 5 | Applying the optimal path for RCEP/FTA | Reduce customs duties and logistics costs |
HS85 (Electrical and Electronic) Imports Trade Index – 2025 Q3
ΔImport +1.8% / ΔPrice +1.2% / Trust 0.74 / 3M Forecast +3.4%
→ Outlook: Moderate increase (Positive-Neutral) . Demand for AI infrastructure and high-performance components supports the upside, and regulatory risks are recommended to be managed through supply diversification and long-term contracts .
