[Anchor]

The results of the recent U.S. midterm elections are expected to have a significant impact on South Korea's economy as well. With the Democratic Party having advocated for regulations on AI data center construction, it could pose new burdens for domestic semiconductor companies.

Reporter Yoo Soo-Hwan has the details.

[Reporter]

The KOSPI, which opened higher at 9:00 a.m., took a sharp turn for the worse around 10:00 a.m. amid reports forecasting a landslide victory for the Democratic Party.

After plunging by more than 4% at one point, the index rebounded around 12:30 p.m. as President Trump conceded defeat, managing to hold onto the 5,600 mark.

As the political landscape in the U.S. Congress shifts and economic policies are expected to change, uncertainty for South Korea's economy is likely to persist for some time.

In particular, a major variable has emerged for the semiconductor industry.

This is because the Democratic Party has argued for regulations, claiming that the construction of AI data centers harms the environment and increases burdens on local residents through massive consumption of electricity and water.

[Jung Yong-taek / Analyst, IBK Investment & Securities: Democratic candidates explicitly pledged during the election that they could suspend or cancel data center projects. There are concerns that disruptions in production and construction could affect South Korea....]

Uncertainty has also been added to the South Korean government's $350 billion investment plan in the United States.

The Texas gas-combined thermal power plant, the first project under the U.S. investment initiative, relies on power demand from AI data centers. However, its future has become uncertain after a Democratic governor was elected in Texas for the first time in 36 years.

Although the power of Congress to check President Trump has grown, the possibility of an immediate easing of tariff pressure is assessed to be low.

[Seok Byung-hoon / Professor of Economics, Ewha Womans University: Even during the past Biden administration, the tariffs imposed during Trump's first term were not lowered. Tariffs have already become a means to bridge the U.S. fiscal deficit.]

On the other hand, some analysts project that the stabilization of interest rates and exchange rates—as checks are placed on the fiscal spending pursued by the Trump administration—could be helpful to South Korean companies.

(Video Editing: Kim Jong-mi | VJ: Lee Ji-hwan)