[Click eStock] Impact on Korean Industries by Sector According to US Presidential Election Results

On the 9th, LS Securities Research Center analyzed the impact on major Korean industries according to the results of the U.S. presidential election.

Under a Democratic administration, the impact on major domestic industries is expected to be "status quo." In the semiconductor sector, exports to China are anticipated to gradually decrease. Domestic investment is expected to maintain current investment plans, while overseas investment is projected to increase due to subsidy benefits. The supply chain is expected to face demands to participate in export controls. LS Securities stated, "It is necessary to strengthen cooperation functions with the U.S. and respond to sudden risks originating from China."

For the automotive sector, current tariffs are expected to be maintained, with a slight increase in domestic reshoring companies. Overseas investment is expected to shift from electric vehicles to hybrid demand, and the supply chain is highly likely to incorporate Korean parts suppliers. They advised diversifying dependence on exports to the U.S. and strengthening research, analysis, and support for emerging markets.

The secondary battery sector is expected to maintain export growth and expand local production. They forecast mid- to long-term growth in the U.S. electric vehicle market and the continuation of current subsidies under the U.S. Inflation Reduction Act (IRA). The supply chain is expected to maintain a de-China trend. They emphasized the need to expand support for the industrial ecosystem from a long-term perspective and support the commercialization of advanced technologies such as solid-state batteries. Diversification of import sources for batteries and mineral materials is also deemed necessary.

Under a Republican administration, the situation is analyzed as "increased uncertainty." In the semiconductor sector, short-term shocks are expected due to high tariffs on ICT products affecting exports and imports. Domestic investment is expected to maintain current investment plans, while overseas investment is anticipated to increase due to subsidy benefits. The supply chain is expected to face strengthened demands to participate in export controls. They analyzed that timely diplomatic response support should be enhanced, and policies that fully support the development of the Indo-Pacific market are necessary.

In the automotive sector, additional tariffs are expected to be imposed. A slight increase in domestic reshoring companies is anticipated, and overseas investment is expected to see a rise in the proportion of hybrid internal combustion engine vehicles. The supply chain is highly likely to incorporate Korean parts suppliers. The need to respond to tariff increase pressures and strengthen hybrid policy support was mentioned.

For secondary batteries, export competitiveness to China and trade barriers are expected to strengthen. Growth in the U.S. electric vehicle market is expected to slow, and concerns over a reduction in IRA support scale were expressed. The supply chain is expected to maintain the de-China trend. They emphasized preparing for reduced profitability in the U.S. market and expanding support for creating new demand such as energy storage systems (ESS) in response to slowing electric vehicle demand.