🧠 Food for thought

Implications, context, and why it matters.

South Korea’s market panic is rooted in more than oil

• Seoul’s sell-off tracks heavy energy exposure. South Korea imports about 70.7% of its oil from the Middle East, much of it shipped through the threatened Strait of Hormuz 1.
• Japan faces a similar supply risk. More than 90% of its imported crude oil comes from the Middle East 2.
• Panic also ties to security concerns. Washington is reportedly weighing a redeployment of missile defense systems such as Terminal High Altitude Area Defense (THAAD) from South Korea to the Middle East for its campaign against Iran 3.
• That shift could leave a gap in South Korea’s defenses. The country regularly faces ballistic missile threats from North Korea, which adds a military risk premium on top of the economic hit 3.

Global instability could speed up China’s tech self-reliance

• Mainland Chinese markets have stayed steadier, backed by a long-term push for “technological self-reliance.” China raised it again at the “two sessions” policy meetings, the annual sessions of the country’s top legislature and top political advisory body 4.
• US tech spending leans toward power-hungry data centers. China has put more money into foundational tools, including advanced semiconductors, to ease chip constraints tied to restricted access to advanced chips 5.
• To expand AI data centers while moving away from foreign chips, local governments subsidize electricity. Authorities also told state-funded data centers to stop using foreign AI chips in new projects or builds still early in construction 6.
• Supply chain turmoil linked to the conflict supports Beijing’s approach. It can shelter domestic chipmakers while overseas rivals deal with geopolitical disruption 6.