As trade tensions between the U.S. and China continue to simmer, South Korea faces a complex geopolitical predicament. The U.S. recently granted Samsung Electronics and SK Hynixindefinite waivers to supply chip equipment to their Chinese factories without additional approvals, a critical development in the ongoing U.S.-China tech war.

These waivers are a strategic necessity for South Korea, aiming to safeguard its semiconductor sector’s economic interests. While the ROK aims to avoid jeopardizing relations with China, its largest trading partner, or straining its security alliance with the U.S., this diplomatic balancing act carries substantial risks. The primary concern is that South Korea’s tech industry could face retaliatory measures from either country if U.S.-China relations deteriorate further and they are forced to pick sides.