South Korean Tech Stocks Crumble After American Mid-Term Election Results Due to Fear of Increased AI Regulations
The Democrat led Congress is probably going to try and stop AI data center construction, but would still need President Trump to no veto anything they try and pass:
South Korean stocks traded sharply lower late Thursday morning as investors were worried about the future of U.S. artificial intelligence (AI) policies after the midterm elections.
After opening 1.82 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, dropping 185.77 points, or 3.27 percent, to 5,498.03 as of 11:20 a.m.
Overnight on Wall Street, major stock indexes finished higher as investors welcomed the Democrats-led Congress.
However, the election outcome raised concerns that the new House and Senate would tighten regulations on AI data centers.
In Seoul, semiconductor shares traded in negative territory.
Tech giant Samsung Electronics sank 5.05 percent, and SK hynix tumbled 6.52 percent.
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