Bloomberg Economics warns that a full-scale conflict on the Korean Peninsula could shrink South Korea's economy by a staggering 37.5% in the first year, while also impacting China's GDP by 5% and the U.S. GDP by 2.3%, resulting in a global GDP drop of 3.9%.

The potential costs of such a conflict are estimated to reach $4 trillion in the first year, highlighting the severe economic consequences that could arise from escalating tensions.

A halt in South Korean electronics exports, which are crucial to global supply chains, could send shockwaves through the economy, affecting major companies like Apple and Xiaomi.

South Korea is a vital player in the global semiconductor market, manufacturing 41% of the world's DRAM chips and 33% of NAND memory chips through industry leader Samsung Electronics.

The Seoul metropolitan area, home to 26 million people, is particularly vulnerable, producing 81% of South Korea's chip production and 34% of its total manufacturing output.

In the event of war, North Korean artillery could target South Korean semiconductor factories, posing a direct threat to this critical sector.

Recent developments, including Vladimir Putin's visit to North Korea and the signing of a defense pact with Kim Jong Un, have heightened global tensions and the risk of conflict.

Experts estimate a 30% chance of skirmishes escalating into broader conflicts, fueled by Kim Jong Un's military provocations.

North Korea has accused the U.S. and South Korea of conducting military drills that could lead to a new nuclear conflict, further escalating tensions in the region.

The potential for millions of deaths looms, particularly for those living in the Seoul agglomeration, which is within range of North Korean artillery.

Despite the low odds of conflict, experts agree that South Korea must remain prepared for any eventualities, given the global economy's heavy reliance on its semiconductor supply.