[Anchor]

The results of the U.S. midterm elections are a significant variable for our economy as well. If the Republican Party wins, tariff pressure is expected to grow; if the Democratic Party wins, concerns over semiconductors are likely to mount.

Reporter Lee Seong-hoon looks into the reasons why.

[Reporter]

Yesterday (Nov. 3), the KOSPI plunged another 3.6%, sliding down to the 5,600 level.

In particular, semiconductor industry giants Samsung Electronics and SK Hynix dropped by over 4% and 5%, respectively. This is interpreted as the result of growing concerns over the profitability of AI investments, coupled with cautious sentiment that the Democratic Party could win the U.S. midterm elections.

The U.S. midterm elections are cited as a variable that will impact not only the direction of investments in the AI industry but also 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 affected first.

The Democratic Party maintains the stance that the speed of artificial intelligence development should be slowed down until safety is secured, and that regulations on the construction of data centers should be tightened because they harm the environment.

[Interview: Kim Jae-seung, Researcher at Hyundai Motor Securities]: "Delays in the construction of AI data centers are a factor that lowers profitability, and we believe the stock market can be affected from the perspective that concerns are growing over whether South Korean memory semiconductors might be purchased less in the long term."

However, if AI investments within the U.S. contract, interest rates could fall and the dollar could weaken, which could be positive for South Korean companies in the short term.

Conversely, if the Republican Party wins or secures enough ground to at least block the Democratic Party, President Trump's policies are expected to continue.

As various investments, including in artificial intelligence, continue, a positive environment for exports and production could be maintained.

However, the burden remains that tariffs could be used to more strongly pressure South Korea and its companies, and that interest rates and exchange rates could fluctuate as the U.S. government takes on more debt.

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

Video Editing: Lee Sang-min | VJ: Jeong Han-uk