[Anchor]

We are closely watching the results of the U.S. midterm elections because they will have a significant impact on our economy. A Republican victory is expected to increase tariff pressure, while a Democratic win is likely to heighten concerns over semiconductors.

Reporter Lee Seong-hoon examines the key points to watch in this election.

[Reporter]

Today (November 3), the KOSPI plummeted 3.6% once again, slipping back down to the 5,600 level.

In particular, semiconductor heavyweights Samsung Electronics and SK Hynix dropped over 4% and 5% respectively. This is interpreted as the result of growing concerns over the profitability of AI investments, coupled with cautious sentiment spreading over a potential Democratic victory in the U.S. midterms.

The U.S. midterms are cited as a key variable that will affect both the investment direction of the AI industry and the domestic stock market.

This is because the direction of regulations could shift depending on the election outcome.

If the opposition Democratic Party wins, the semiconductor industry could be the first to take a hit.

The Democrats maintain the stance that the pace of artificial intelligence development should be slowed down until safety is guaranteed, and that regulations on the construction of data centers should be tightened because they harm the environment.

[Kim Jae-seung / Researcher, Hyundai Motor Securities : Delays in the construction of AI data centers are factors that reduce profitability, and from the perspective that concerns are growing over whether South Korea's memory semiconductors will be purchased less in the long term, we view that the stock market could be affected.]

However, if AI investments within the U.S. contract, interest rates could fall and the dollar could weaken, which might be positively short-term for our companies.

Conversely, if the Republicans win or secure enough seats to block the Democrats, President Trump's policies are expected to continue.

With various investments, including in artificial intelligence, continuing, favorable conditions for exports and production could be maintained.

However, the burden remains that they could apply stronger pressure on our country and companies through tariffs, and that interest rates and exchange rates could fluctuate as the U.S. government takes on more debt.

As opportunities and threats coexist for us regardless of which side wins, it is time for the government, businesses, and individual investors alike to make meticulous preparations.

(Video Editing: Lee Sang-min, VJ: Jung Han-wook)