Leaders of major South Korean display manufacturers have begun closely assessing the potential economic repercussions of the escalating conflict in the Middle East.
Executives warn that prolonged hostilities could intensify inflationary pressure and elevate manufacturing expenses across the electronics industry.
Speaking ahead of the annual meeting of the Korea Display Industry Association in Seoul, Yi Chung, Chief Executive Officer of Samsung Display, emphasised that a prolonged conflict could significantly increase the price of essential raw materials. He noted that the sector already faces difficult conditions due to climbing memory chip prices.
Yi explained that the ongoing confrontation between the United States and Iran may fuel global inflation, potentially worsening the industry outlook in the latter half of the year.
Rising costs across semiconductor components could force electronics manufacturers to reconsider production strategies.
Industry analysts have also raised concerns that soaring memory chip prices, driven partly by the global surge in artificial intelligence technologies, could prompt smartphone manufacturers to reduce shipment volumes. Such a move would ultimately weaken demand for display panels.
Yi further observed that while memory chip producers may record strong profits, companies that depend on these components face increasing operational challenges. He stressed that firms must prioritise cost efficiency and deepen collaboration with supply chain partners to remain competitive.
Meanwhile, Jeong Chul-dong, Chief Executive Officer of LG Display, confirmed that his company is also carefully evaluating developments in the Middle East.
Although the conflict has not yet directly disrupted operations, the company is assessing the possible implications of rising semiconductor prices on finished electronics products.
Jeong stated that LG Display intends to respond flexibly to fluctuations in memory chip supply while continuing efforts to strengthen financial stability and maintain steady profitability.
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