[COVER STORY] Korea's chip-driven growth faces risks from potential US data center curbs
Korea is facing growing concerns that a sharp stock market decline triggered by fears of U.S. restrictions on artificial intelligence (AI) data center construction could spill over into the real economy, as such curbs, if implemented, could threaten semiconductor exports and weigh on next year’s growth, analysts said Sunday. The Democrats’ victory in the U.S. midterm elections last week has…
![[COVER STORY] Korea's chip-driven growth faces risks from potential US data center curbs](/img/18893153)
Korea's economy is facing potential risks as a sudden drop in stock markets, driven by fears of U.S. restrictions on artificial intelligence (AI) data center construction, could extend to the broader economy, according to analysts. If such curbs were to be implemented, they could negatively impact semiconductor exports and slow down growth in the coming year.
Democrats' recent victory in the U.S. midterm elections has heightened speculation about tighter oversight of data center projects, although no specific measures have been announced yet. Korea's economy has reaped significant benefits from the global AI boom this year, with semiconductor exports playing a crucial role in driving growth.
Semiconductors made up 49 percent of the country's total exports in October, and the Bank of Korea (BOK) predicts that the industry will contribute about half of the nation's economic growth this year. These concerns have already had a negative impact on Korean stocks. The main KOSPI index and the secondary Kosdaq exchange both dropped by 10.43 percent and 8.54 percent, respectively, over three consecutive trading sessions.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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