South Korean weapons are setting export records, but defense semiconductors that serve as their core components rely almost entirely on imports, raising concerns about structural vulnerabilities. A report cited 98.9 percent import use for advanced chips in domestic weapon systems, with particularly high dependence for power and memory semiconductors. The article also highlights risks from hardware backdoors and limits of network separation, and notes China’s push to raise self-sufficiency in SiC and GaN power chips.

Semiconductors, defense, shipbuilding and power equipment are expected to lead South Korea\'s exports in the second half, with simultaneous strength across the four sectors seen absorbing external shocks despite prolonged Middle East tensions and a surge in Strait of Hormuz shipping rates. The Bank of Korea raised its growth outlook and lifted its inflation forecast, citing strong first-quarter growth and an extended semiconductor cycle. Officials also pointed to broader export gains across industries.