South Korea Printed Circuit Board Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South Korea Printed Circuit Board Market Trends and Insights

Surging Demand for HDI Boards in 5G Smartphones

Samsung introduced the Galaxy S26 in January 2026, integrating 14-layer any-layer HDI boards that raise printed-circuit content per handset by 18% compared with the previous generation.^{[1]Samsung Electronics, “Samsung Unveils Galaxy S26 Series,” Samsung.com} Apple’s iPhone supply chain is mirroring the trend toward greater complexity, sustaining local HDI orders. Korean fabricators are leveraging proximity to Samsung Display’s upcoming 8.6-generation OLED lines to co-design rigid-flex assemblies for foldable panels. Chinese HDI specialists have compressed lead times to 7 days and cut prices by 12-15%, forcing Korean peers to compete on design-for-manufacturability rather than unit cost. The Ministry of Science and ICT allocated KRW 1.2 trillion for next-generation radio access network R&D, reinforcing domestic demand.

Rising Automotive Electronics Content in EV Platforms

Hyundai Motor Group’s Integrated Modular Architecture increases the PCB footprint by threefold by consolidating battery, thermal, and software-update control onto a single domain controller.^{[2]Hyundai Motor Group, “Integrated Modular Architecture Technical Overview,” Hyundaimotorgroup.com} Hyundai Mobis has earmarked KRW 11 trillion for electrification components through 2028, with about 18% directed to PCB procurement. The migration to 800-volt drivetrains demands substrates with higher dielectric strength, pushing suppliers toward polyimide and ceramic-filled epoxy blends that carry 30-40% premiums over FR-4. Korea’s Automotive Electronics Standardization Committee tightened IPC-6012 Class 3 rules in May 2025, raising qualification hurdles. Smaller shops such as Korea Circuit are shifting production from consumer to automotive lines to protect margins.

Government Tax Incentives for Domestic Packaging Substrate Lines

The K-Chips Act provides a 15% investment tax credit and accelerated depreciation, catalyzing KRW 3.8 trillion in announced substrate projects since 2024. LG Innotek’s KRW 600 billion Gumi expansion and Samsung Electro-Mechanics’ undisclosed Busan project focus on flip-chip BGA and RF system-in-package formats.^{[3]LG Innotek, “Gumi Facility Expansion Announcement,” Lginnotek.com} Defense Acquisition Program Administration co-funding of semiconductor packaging elevates the dual-use business case. However, incentives sunset in December 2027, adding urgency to capacity ramp-up decisions.

Increasing Adoption of AI Accelerators in Data Centers

SK Hynix began shipping 12-high HBM3E stacks to NVIDIA in Q3 2025, each requiring complex interposers and high-amp substrates. Samsung Electro-Mechanics reported that AI-accelerator substrates climbed to 34% of its substrate revenue in Q2 2025. OpenAI’s Stargate program is sourcing 40% of its server PCBs from Korean vendors, diversifying away from China. Yield remains a bottleneck, with FC-BGA defect rates around 8%, prompting LG Innotek to invest in laser-direct-imaging tools to halve defect density by late 2026.

Volatility in Copper Foil Prices

Copper averaged USD 8,500-10,200 per metric ton in 2025, swinging 20% on supply-side disruptions, compressing operating margins for mid-tier fabricators locked into 60-day contracts. Samsung Electro-Mechanics hedged 70% of its copper exposure, muting the earnings hit, while smaller firms endured cancellations in price-sensitive IoT orders. The Korea Fair Trade Commission investigated five domestic distributors for alleged premium inflation but found insufficient evidence in December 2025. The International Copper Study Group projects a refined-copper deficit of 180,000 metric tons in 2026, implying sustained volatility.

Supply Bottlenecks for BT and ABF Resin

Ajinomoto Fine-Techno and Mitsubishi Gas Chemical control roughly 70% of global ABF capacity and are reluctant to add lines despite surging AI-server demand, extending substrate lead times by up to 12 weeks. Samsung Electro-Mechanics and LG Innotek resorted to BT resin for some stackups, sacrificing thermal conductivity and layer counts. Doosan Electronics BG gained share in standard epoxy laminates, reporting 92% revenue growth in H1 2025, yet lacks ABF coating prowess. Persistent shortages threaten ramp schedules for high-bandwidth memory substrates through 2027.

Segment Analysis

By PCB Type: Flexible Circuits Lead Growth While Commoditized Multilayer Boards Face Margin Pressure

Flexible circuits are advancing at a 6.57% CAGR through 2031, the fastest among PCB categories, as foldable smartphones and EV battery-management systems seek lighter, bendable interconnects. Standard multilayer boards retained a 26.43% share of the South Korea printed circuit board (PCB) market in 2025, but Chinese price competition erodes profitability. High-density interconnect boards, essential for 3-nanometer processors in flagship phones, deliver higher average selling prices. Rigid 1-2-sided boards persist in home appliances but are ceding volume to integrated modules.

IC substrates occupy the premium tier and generated 55% of domestic IC-substrate revenue for Samsung Electro-Mechanics, LG Innotek, and Ibiden Korea in 2025, underscoring differentiation through flip-chip BGA and wafer-level chip-scale technologies. Rigid-flex boards are gaining traction in wearables and automotive clusters, where vibration resistance justifies a 40-50% cost premium. Metal-core and ceramic substrates serve LED lighting and power modules, respectively, offering niche but stable demand within the South Korea printed circuit board (PCB) market.

Note: Segment shares of all individual segments available upon report purchase

By Substrate Material: High-Speed Low-Loss Laminates Capture Next-Generation Design Wins

Glass-epoxy FR-4 captured 42.33% of the material revenue in the South Korea PCB market in 2025, reflecting its cost advantage in commodity multilayer applications. High-speed low-loss laminates deliver the fastest 6.19% growth as 5G, and 800-gigabit Ethernet switches require dielectric constants below 3.5. Leading suppliers Rogers Corporation and Isola command price premiums of 3.5-4 times FR-4, yet designers accept higher costs to meet signal-integrity budgets.

Polyimide substrates benefit from Samsung Display’s late-2026 OLED ramp, driving volume for rigid-flex assemblies. Packaging resins BT and ABF remain capacity-constrained, hindering some AI-accelerator ramps. Ceramic-filled epoxy and metal-core laminates address thermal management in EV inverters and LED modules, filling specialized yet growing niches within the South Korea printed circuit board (PCB) market.

By End-User Industry: Telecommunications and Defense Outpace Consumer Electronics

Telecommunications and 5G infrastructure expand at 6.79% annually through 2031, lifted by Korea Telecom’s AI-RAN rollout and a government requirement to upgrade 8,500 base stations by 2027. Consumer electronics contributed 37.62% of 2025 demand, but replacement cycles are lengthening. Computing and data-center volume accelerate as OpenAI and hyperscalers source AI server substrates locally.

Automotive PCB demand grows alongside Hyundai’s shift to 800-volt EV architectures, increasing board area and material complexity. Industrial power gear, such as LS Electric’s HVDC transformers, incorporates high-current boards. Aerospace and defense orders rise after Wavevis secured a KRW 265 billion radar contract, highlighting onshoring in defense. Healthcare maintains a high-margin niche with implantable devices requiring IPC Class 3 reliability. These vertical dynamics collectively shape the revenue mix of the South Korea printed circuit board (PCB) market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Korean PCB production is geographically concentrated in Gyeonggi and Chungcheong provinces, which host most advanced substrate fabs. Proximity to Samsung and SK Hynix foundries in Pyeongtaek and Hwaseong shortens logistics cycles for flip-chip BGA substrates, supporting time-critical AI-server builds. Ulsan and Gwangju automotive hubs increasingly draw rigid-flex and high-current multilayer boards as Hyundai accelerates EV output. Defense corridors in Daejeon and Busan absorb high-reliability rigid-flex assemblies for radar and missile systems, reinforcing domestic strategic autonomy.

Export-focused factories in Incheon and Busan ship flexible circuits and standard multilayer boards to Vietnam and North American assembly plants. However, margin pressure from Chinese producers prompts smaller exporters to pivot toward high-speed laminates for 5G radios. The Ministry of Science and ICT’s 5G+ initiative channels R&D funding into rural base-station upgrades, broadening domestic demand beyond Seoul metropolitan projects. Collectively, these regional dynamics underpin the distributed yet interlinked footprint of the South Korea Printed Circuit Board Market.

Jeju and Gangwon provinces play minor roles, mainly serving as hosts to niche suppliers of metal-core boards for renewable-energy inverters. Logistics improvements along the Eastern coastal rail line, completed in late 2025, cut transit time to Pohang steelworks, indirectly stabilizing copper-foil supply. While provincial incentives compete for new fabs, capital remains concentrated near existing semiconductor clusters, ensuring sustained capacity for the South Korea Printed Circuit Board Market.