The odds of an all-out war between North and South Korea are very low, but they aren’t zero. The capital and surrounding areas account for 81% of South Korea’s chip production and 34% of its total manufacturing output. South Korea produces 4% of all electronic components used in factories worldwide, and around 40% of all memory chips. Putin’s pact with North Korea, along with Kim’s recent threats to “annihilate” his southern neighbor, have laid bare the risks facing South Korea. Southeast Asia, Japan and Taiwan — dependent on South Korea’s chips and vulnerable to maritime disruptions — take the biggest hit.
