South Korean firms will likely be hit by U.S. trade sanctions on Russia in response to the latter's invasion of Ukraine.

In its latest move against the Kremlin, the U.S. commerce department on Thursday announced sweeping sanctions under an expanded Foreign Direct Product Rule(FDPR) to Russian sanctions that requires companies making high- and low-tech items overseas with U.S. tools to seek a license from the U.S. before shipping to Russia. 

This will likely affect South Korean exporters and manufacturers of semiconductors, automobiles and electronics, as well as other sectors across the board. It is a similar move that Washington made in 2020, expanding the FDPR to enlarge the scope of existing sanctions on Chinese tech giant Huawei,  

The U.S. treasury department also announced sanctions targeting its two biggest banks and members of the elite, and Washington warned more action could come. 

The latest U.S. sanctions target chips, communication technology, information security equipment, lasers and sensors. The injunction will, to some degree, affect South Korean chip producers Samsung Electronics and SK hynix, whose products are key components for nearly all electronic devices involving U.S. technology and software. 

Semiconductor shipments to Russia last year amounted to 74 million dollars, approximately zero-point-06 percent of Korea's total chip exports.

Exports of smartphones are also expected to take a hit as they contain mobile application processors that also utilize U.S. technology. Samsung Electronics was the leader in Russia's smartphone market last year, commanding a 30 percent share. 

U.S. sanctions will also deal a blow to exports of cars and auto parts. When Russia annexed Crimea in 2014 prompting sanctions by the West, Korean auto exports to Russia plunged 62 percent the following year.