AI uncertainties after US midterms 'golden opportunity' for Korea: 2nd vice science minister

SEOUL, Nov. 11 (Yonhap) -- Uncertainty surrounding artificial intelligence (AI) investments following U.S. midterms elections could present a golden opportunity for South Korea, according to a top science ministry official. Second Vice Science Minister Ryu Je-myung made the assertion at an AI conference in Seoul, amid concerns in the United States that the incoming Democratic Congress may impose stricter regulations on AI and data centers.

Ryu noted that market uncertainty may rise due to potential changes in the investment climate for AI and data centers post-U.S. midterms. He emphasized that this presents a chance to lessen the gap with leading nations and secure unrivaled national AI competitiveness through swift investments and technological advancements. To achieve this, the government is contemplating doubling the AI sector's funding to approximately 9.4 trillion won next year.

South Korea is a leading research and development (R&D) hub, with R&D funding constituting over 5 percent of the nation's gross domestic product, Ryu highlighted. Concurrently, markets have been unsettled due to fears that the Democrats' overwhelming win in the U.S. midterm elections could slow down the construction of AI data centers, causing the tech-focused Nasdaq to plummet by over 5 percent.

Domestic semiconductor leaders, Samsung Electronics and SK hynix, also experienced declines of more than 3 percent each, in response to the election outcomes.