Core Viewpoint - The article discusses the impact of geopolitical tensions in the Middle East on the South Korean stock market and the storage industry, highlighting a significant increase in storage prices due to supply constraints and rising demand from AI applications [3][4]. Group 1: Market Impact - The KOSPI index fell by 11% to 5150.82 points, attributed to high oil dependency on the Middle East and concerns over potential disruptions in oil supply [3]. - The South Korean stock market had previously surged nearly 50% this year, driven by rising storage prices, with major players Samsung Electronics and SK Hynix accounting for about 40% of KOSPI's total market value [3]. Group 2: Storage Market Dynamics - In Q1 2026, global storage capacity supply (excluding HBM) is expected to decline by 4.1% year-on-year, influenced by increased demand for high bandwidth memory (HBM) due to AI [4]. - Both storage manufacturers and end-user companies are experiencing low inventory levels, leading to strong replenishment demand, which exacerbates the supply tightness in the global storage market [4]. - Prices for DRAM (LPDDR4X, 6GB) are projected to increase by 67.5% in Q1 2026 compared to Q4 2025, while NAND (UFS 3.1, 128GB) prices are expected to rise by approximately 69.9% in the same period [4]. - The ongoing supply-demand imbalance in the storage market is likely to exert cost pressures on consumer electronics manufacturers, resulting in widespread price increases for consumer electronic products [4].