AI uncertainties after US midterms 'golden opportunity' for Korea: 2nd vice science minister
Second Vice Science Minister Ryu Je-myung gives a congratulatory address at an event in Seoul, Oct. 28. Courtesy of Ministry of Science and ICT
Fresh uncertainties surrounding artificial intelligence (AI) investments following the US midterms could provide a "golden opportunity" for Korea, a high-level science ministry official said Wednesday.
Second Vice Science Minister Ryu Je-myung made the remarks at a congratulatory address during an AI conference hosted by the ministry in Seoul as he mentioned growing concerns in the United States that the 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 US 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.
To that end, the government is considering doubling the amount of funding for the AI sector to around 9.4 trillion won next year, he said.
"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," Ryu pointed out.
Meanwhile, markets have been rattled with worries that the Democrats' sweeping victory in the US midterm elections could lead to a slowdown in the building of AI data centers.
Such fears have sent the tech-heavy Nasdaq down by more than 5 percent.
Local semiconductor giants suffered as well, with Samsung Electronics and SK hynix both shedding over 3 percent, following the election results.