Fresh uncertainties over AI investments after the U.S. midterm elections could be a “golden opportunity” for South Korea, Second Vice Science Minister Ryu Je-myung said Wednesday. Ryu made the remarks in a congratulatory address at an AI conference hosted by the ministry in Seoul, citing growing U.S. concerns that an incoming Democratic Congress could tighten regulations on AI and data centers.
“There are observations that market uncertainty could increase amid potential changes in the investment environment for AI and data centers (following the U.S. midterms),” Ryu said at the event.
“It (actually) provides a golden opportunity to narrow our gap with leading countries and secure overwhelming national AI competitiveness through aggressive and speedy investments and technological innovation,” he added.
AI investment outlook
To that end, the government is considering doubling the amount of funding for the AI sector to around 9.4 trillion won next year. Ryu also noted, “South Korea is a major research and development powerhouse, whose funding for the R&D sector accounts for over 5 percent of the country’s gross domestic product.”
Markets have been rattled by worries that the Democrats’ sweeping victory in the U.S. midterm elections could lead to a slowdown in the building of AI data centers. Those fears sent the tech-heavy Nasdaq down by more than 5 percent, and local semiconductor giants were hit as well, with Samsung Electronics and SK hynix both shedding over 3 percent following the election results.
