"Customers are bewildered. The quotes from a week or ten days ago are different, and sometimes the prices even change between morning and afternoon on the same day..."

At 4 p.m. on March 3, on the first floor of Seonin Shopping Mall in Yongsan-gu, Seoul. Although electronic markets should be bustling with the peak season for the new semester, it was difficult to find people browsing the goods inside. Shin Myeongcheol (59, male), the president of a used laptop company, lamented, "Memory prices have gotten so high that the cost price is now higher than the sales price," adding, "It's the new semester, but there are no customers. On top of that, I think the Middle East war will also impact logistics costs."

It's the peak season for new semesters, but electronic markets are 'sighing'

DDR4 8GB at $29.5... 15% increase compared to last year

Memory bottleneck continues with 'chipflation'

Despite the high demand for smartphones and laptops during the new semester season, the sighs of Yongsan electronics market merchants are growing heavier. The so-called 'chipflation' caused by memory shortages continues, and now, with the added impact of U.S. and Israeli airstrikes on Iran disrupting supply chains, concerns are mounting that IT device prices could soar even higher.

Market research firm Counterpoint Research warned in a report, "Rising tensions between the U.S./Israel and Iran are increasing geopolitical risks and amplifying uncertainty in global markets," adding, "The situation is likely to become more complex and prolonged. This could impact airline routes, operating costs, and inventory planning across the global smartphone market."

The Middle East serves as a 'hub' for smartphone air logistics. However, due to the current war, oil prices have risen, and if airlines opt for alternative routes instead of passing through the Middle East, logistics costs must be expected to increase. According to Counterpoint Research, transporting smartphones via alternative routes instead of through the Middle East will result in at least two to three additional hours of flight time and an extra fuel cost of $25,000 (about 36.99 million won). Furthermore, they stated, "Although air shipping is more expensive than sea freight, smartphones are high-value products with short product cycles, making air transport preferable," and added, "Rising logistics costs will further strain supply chains that are already under significant pressure."

Samsung Electronics Galaxy S26 Ultra 1TB 2,545,400 won...19.6% increase

LG Electronics Gram Pro AI 2026 16-inch around 3.14 million won...19% increase

2-3 hours longer when flying around the Middle East, fuel cost up 25,000 dollars

Concerns grow over additional price hikes due to rising international oil and logistics costs

Even before the war between the U.S./Israel and Iran, IT device prices had already surged. The average spot price for PC DDR4 8GB (1Gx8) 3200 memory reached $29.5, up about 15% from the weekly average at the end of last year ($13.1), illustrating chipflation caused by memory bottlenecks. The launch price of Samsung Electronics' Galaxy S26 Ultra 1TB smartphone was 2,545,400 won, a 19.6% increase from the previous model (2,127,400 won). The launch price of LG Electronics' new laptop, Gram Pro AI 2026 16-inch model, also rose to around 3.14 million won, up about 19% from the previous model (about 2.6 million won).

The problem is that the war could be prolonged. On March 2 (local time), U.S. President Donald Trump, during a ceremony at the White House in Washington, D.C. to award the Medal of Honor to war veterans, stated, "I don't care how long (the war with Iran) takes," and added, "I expected it would take four to five weeks, but we have the capacity to sustain it even longer." Furthermore, in an interview with the New York Post, President Trump suggested the possibility of deploying ground troops, saying, "Unlike other presidents who said there would be no ground troops, I have no 'phobia' about sending in ground forces."

"Memory price alone for one PC is 1.7 million won" Sudden drop in orders

Consumers say "Will buy if prices drop further" as cautious wait-and-see sentiment deepens

Global smartphone shipments expected to decrease by 12.9%

Self-employed IT device sellers expressed concerns over rising prices and falling demand. Market research firm IDC has predicted that global smartphone shipments this year will decrease by 12.9% compared to the previous year. Kim (48, male), the president of a PC sales shop at Seonin Shopping Mall in Yongsan, said, "The memory alone for one PC now costs 1.7 million won," adding, "Prices have increased nearly fivefold, so companies are hesitant to place orders." Another laptop sales shop owner, Mr. A (50, male), explained, "Even when customers visit, they say they'll only buy if prices drop further and end up leaving," and added, "With shortages in parts and rising logistics and fuel costs due to the war, it doesn't look like prices will come down anytime soon."