KDI Journal of Economic Policy

Korea Development Institute (한국개발연구원)
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The Impact of US Export Controls on Korean Semiconductor Exports

  • HANHIN KIM (Industrial Innovation Policy Division, Korea Institute for Industrial Economics and Trade (KIET)) ;
  • JAEHAN CHO (Industrial Innovation Policy Division, Korea Institute for Industrial Economics and Trade (KIET) )
  • Received : 2024.06.14
  • Published : 2024.08.31
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Abstract

This study empirically investigates the impact of recent US export controls on China on South Korea's semiconductor exports. We analyze South Korean export data to shed light on the repercussions of US export restrictions on a third country. Our findings reveal a significant decline in Korean semiconductor exports following the October 2022 imposition of US controls. This decline was most pronounced in the memory, discrete devices, and discrete device components subsectors of the semiconductor industry. In addition, we observed a decrease in unit prices, especially for memory semiconductors, pointing to downward pressure on South Korea's high-value-added semiconductor exports. These results provide some evidence of substantial negative impacts of US export controls on South Korea's semiconductor industry, and particularly with regard to its high-tech products.

Keywords

Acknowledgement

I would like to thank Chin Hee Hahn and the anonymous referees for their helpful comments and productive discussions. Furthermore, this paper greatly benefited from the input of participants at the 2024 Conference of the KDI Journal of Economic Policy. In particular, I would like to extend my appreciation to the designated discussant, Seungrae Lee. All remaining errors are our own.

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