I was reading a post on TechEye.net today, and the writer had some thought-provoking points in response to the recent escalation of hostilities between North and South Korea, and what impact the situation might have on DRAM and LCD markets. On the 24th, (according to the Taipei Times) share prices for Taiwan's nation's major PC memory chipmakers increased, perhaps due to fears of a supply disruption from South Korean chipmakers. Although, the initial 'surge' leveled off later in the day. Of course, none of us has the crystal ball, and I would argue that there are much greater things at stake here than the price of DRAM, but, as a former business student, the forces at work in the global economy are very interesting to me.
If you share my curiosity, I encourage you to read the entire post from TechEye.net for yourself. In the meantime, here is a clip for you:
“What will happen? Many of the cogs in the electronics market are oiled by big business in South Korea: Samsung, Hynix, LG and others. It could very well have a domino effect. The KRX100 is down 29.23 points, the KOSPI is down 15.40 points and the KOSDAQ is down 4.40 points.
And what of the neighbours? Japan must be worried as North Korea has shown aggression to it before. China, while historically more sympathetic to North Korea than the rest of its world, doesn't want disruption in Asia: its strength and its power is based on trade.”
If you have any thoughts, comments, or insights on this situation, please comment below.