US restrictions against Huawei Technologies Co. are adversely impacting South Korean firms, which exports chips to China.
South Korea’s two biggest exporters, Samsung Electronics Co. and SK Hynix Inc. use US-made equipment while trading with Huawei and other Chinese firms.
Samsung earned almost 20 percent of its revenue from China in the latest quarter, while Hynix generated nearly 40 percent.
According to the Korea Institute for Industrial Economics & Trade analyst Kim Yang-paeng, US restrictions on Huawei can result in smaller Chinese tech exports containing South Korean semiconductors.
South Korea’s largest single export category is the chips, worth $94 billion last year, or 17 percent of its total exports.
China is also South Korea’s biggest trading partner.
Huawei is a major buyer of South Korean chips and was expected to buy over $10 billion from South Korea in 2019.
Nonetheless, Huawei’s decline may prove beneficial for some South Korean sectors such as smartphones, where Samsung is competing for the top spot globally.


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