Concerns are growing the Trump administration's move to effectively ban American firms from doing business with Chinese telecommunications company Huawei could put pressure on South Korean businesses. 

Tech companies in South Korea are closely monitoring the situation although they don't believe there will be an immediate impact. 

According to industry officials on Monday, Huawei takes up less than five percent of Samsung Electronics and SK Hynix's semiconductor revenue. The U.S. Commerce Department will also draw up an enforcement plan over 150 days before implementing the ban. 

However, observers say South Korea's export-reliant IT sector could take a hit if the U.S.-China trade dispute is not resolved soon.