Tech giants facing higher cost burdens amid supply chain disruptions | Yonhap News Agency

## Summary
OK SEOUL, March 15 (Yonhap) -- South Korean tech giants faced higher production costs in 2025 as they felt the pinch from inflation, data showed Sunday, with the supply chain crisis stemming from Middle East tensions set to further increase pressure this year. Industry watchers said the U.S.-Iran war is expected to lead to higher oil and logistics costs this year, eventually leading to even greater cost burdens for tech giants. Tech manufacturers had already been facing mounting pressure amid memory price hikes following the artificial intelligence (AI) boom. "With the Middle East crisis adding to existing challenges, major companies are implementing emergency management measures, including improving production efficiency through AI transformation and cutting costs," an industry official said. The logo of Samsung Electronics Co. and SK hynix Inc. (Yonhap) colin@yna.co.kr (END) Related Articles (LEAD) Samsung, LG display arms closely watching fallout of Middle East crisis Keywords #Samsung #LG #Iran Articles with issue keywords Most Liked (News Focus) USFK's relocation of military assets to Middle East raises concerns about Seoul's capability to deter N.K. threats 16th Gwangju Biennale: You must change your life BTS expands Gwanghwamun concert capacity to 22,000 with added standing zones BTS to launch 'Arirang' pop-ups to mark new album release Police vow zero tolerance for terror threats against BTS comeback concert Most Saved 16th Gwangju Biennale: You must change your life Lee says to swiftly introduce fuel price cap as Mideast crisis intensifies S.

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SEOUL, March 15 (Yonhap) -- South Korean tech giants faced higher production costs in 2025 as they felt the pinch from inflation, data showed Sunday, with the supply chain crisis stemming from Middle East tensions set to further increase pressure this year.
According to a regulatory filing by Samsung Electronics Co., the company spent 99.94 trillion won on purchasing raw materials in 2025, up 8.8 percent, or 8 trillion won, from a year earlier. The data excludes the firm's wholly owned subsidiary Samsung Display Co.
The sharp rise was mostly attributable to the firm's Device Experience (DX) division, which includes mobile and TV businesses, with the segment spending 74.5 trillion won on raw materials, up nearly 7 trillion won from a year earlier.
LG Electronics Inc. also spent 17.4 trillion won on raw materials in 2025, up 5.6 percent from a year earlier.
Industry watchers said the U.S.-Iran war is expected to lead to higher oil and logistics costs this year, eventually leading to even greater cost burdens for tech giants.
Tech manufacturers had already been facing mounting pressure amid memory price hikes following the artificial intelligence (AI) boom.
"With the Middle East crisis adding to existing challenges, major companies are implementing emergency management measures, including improving production efficiency through AI transformation and cutting costs," an industry official said.
The logo of Samsung Electronics Co. and SK hynix Inc. (Yonhap)
colin@yna.co.kr
(END)
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Tech giants facing higher cost burdens amid supply chain disruptions

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- The logo of Samsung Electronics Co. and SK hynix Inc. (Yonhap) colin@yna.co.kr (END) Related Articles (LEAD) Samsung, LG display arms closely watching fallout of Middle East crisis Keywords #Samsung #LG #Iran Articles with issue keywords Most Liked (News Focus) USFK's relocation of military assets to Middle East raises concerns about Seoul's capability to deter N.K. threats 16th Gwangju Biennale: You must change your life BTS expands Gwanghwamun concert capacity to 22,000 with added standing zones BTS to launch 'Arirang' pop-ups to mark new album release Police vow zero tolerance for terror threats against BTS comeback concert Most Saved 16th Gwangju Biennale: You must change your life Lee says to swiftly introduce fuel price cap as Mideast crisis intensifies S.

### Implications
- Industry watchers said the U.S.-Iran war is expected to lead to higher oil and logistics costs this year, eventually leading to even greater cost burdens for tech giants.
- The logo of Samsung Electronics Co. and SK hynix Inc. (Yonhap) colin@yna.co.kr (END) Related Articles (LEAD) Samsung, LG display arms closely watching fallout of Middle East crisis Keywords #Samsung #LG #Iran Articles with issue keywords Most Liked (News Focus) USFK's relocation of military assets to Middle East raises concerns about Seoul's capability to deter N.K. threats 16th Gwangju Biennale: You must change your life BTS expands Gwanghwamun concert capacity to 22,000 with added standing zones BTS to launch 'Arirang' pop-ups to mark new album release Police vow zero tolerance for terror threats against BTS comeback concert Most Saved 16th Gwangju Biennale: You must change your life Lee says to swiftly introduce fuel price cap as Mideast crisis intensifies S.
- Korea, U.S. conduct joint drills Lee urges caution over reform measures to minimize side effects Most Viewed All Categories (2nd LD) N.
- Korea, U.S. conduct joint drills (LEAD) N.

### Expert Commentary
This article covers korea, tech, samsung topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 509.