The Korea Times

Democrats' win could compound pressures on AI spending, Korean chipmakers

Democrats’ sweeping gains in the U.S. midterm elections, combined with growing public opposition to data centers and mounting financing demands on Big Tech companies, could slow the pace of artificial intelligence (AI) investment and weigh on Korean chipmakers, market watchers said Wednesday. Although the vote counting is still under way, Democrats are poised to win control of both the Senate and the House of Representatives in a historic “blue wave,” representing a major setback for U.S. President Donald Trump and his Republican Party. According to a report by the Bank of Korea’s New York Representative Office, the election outcome is unlikely to prompt major changes in the Trump administration’s overall policy direction, but could “have a limited impact on AI regulation and the pace of related investment.” “Even if Democrats control both chambers, they are unlikely to have the two-thirds majority needed to override a presidential veto. That limits what they can actually block or push through. So it’s difficult to expect the election results alone to have an immediate

1h agoBy Park Han-sol

Democrats' win could compound pressures on AI spending, Korean chipmakers

Decisive Democratic victory could bring tougher OPCON transfer conditions: experts

The Democratic Party’s victory in the U.S. midterm elections could complicate Seoul’s push to regain wartime operational control (OPCON) from Washington, with experts warning that the new congressional majority may seek tougher conditions for the transfer. Democrats secured control of both the House and Senate, putting Congress in a stronger position to scrutinize U.S. President Donald Trump’s security policies, including U.S. troop deployments and defense cooperation with Seoul. Shin Beom-chul, a senior research fellow at the Sejong Institute and former vice defense minister, warned that the Democratic victory could create new hurdles for Seoul’s OPCON ambitions. “If Democrats take control of Congress, they could impose tougher conditions on the OPCON transfer through the National Defense Authorization Act,” Shin said. Seoul seeks to retake OPCON by 2028, with the allies set to decide on the timeline at a security consultative meeting slated for early next year. The election outcome gives Democrats greater leverage over defense legislation. Any new restrictions on OPCON trans

1h agoBy Bahk Eun-ji

Decisive Democratic victory could bring tougher OPCON transfer conditions: experts

Seoul stocks face fresh uncertainty as Democrats retake US Congress

Korean stocks face growing policy uncertainty after Democrats regained control of both the Senate and the House of Representatives in the U.S. midterm elections, according to market analysts, Wednesday. They say obstacles to extending corporate tax cuts and the prospect of stricter oversight of Big Tech and artificial intelligence (AI) could fuel volatility in Korea’s tech-heavy stock market. However, sweeping policy changes remain unlikely given U.S. President Donald Trump’s veto power and ability to issue executive orders, the analysts said. Over the medium term, Korean stocks are expected to be driven more by returns on AI investment, semiconductor demand and foreign investor flows than by the election outcome itself. KOSPI closed slightly higher after a volatile session as investors assessed the implications of the Democrats’ victory. After rebounding 2.24 percent in the previous session, the benchmark opened at 5,786.13, up 137.34 points, or 2.43 percent, and climbed as high as 5,828.13, a gain of 3.17 percent. It then reversed course, falling as much as 4.02 percent to 5,421.

2h agoBy Jun Ji-hye

Seoul stocks face fresh uncertainty as Democrats retake US Congress

Democratic sweep in US midterms dims prospects for Trump-Kim summit, analysts say

The Democrats’ victory in both the House and Senate in Tuesday's (local time) U.S. midterm elections has made a summit between U.S. President Donald Trump and North Korean leader Kim Jong-un even less likely, analysts said Wednesday, though others argued that Trump’s tendency to shrug off political pressure means he may keep pursuing a meeting regardless. A Trump-Kim meeting had been floated as a possible diplomatic surprise around the Asia-Pacific Economic Cooperation (APEC) summit, scheduled for Nov. 18 and 19 in Shenzhen, China. The two leaders met three times during Trump’s first term from 2017 to 2021, but a fourth meeting was already in doubt before the elections, given Kim’s lukewarm response to renewed U.S. outreach. Some analysts said the prospect has also lost some of its appeal as a headline-grabbing event, with attention shifting to a possible U.S.-China-Russia summit in Shenzhen. Ahn Chan-il, director of the World Institute for North Korea Studies, said Democratic control of Congress could “force Trump to rethink his approach to Pyongyang and also make it harder f

2h agoBy Yi Whan-woo

Democratic sweep in US midterms dims prospects for Trump-Kim summit, analysts say

Democratic midterm gains may fuel fresh trade uncertainty for Korea

Democratic gains in both chambers of the U.S. Congress in the midterm elections could expose Korea to fresh trade uncertainty, as experts warn that while such a shift would do little to curb U.S. President Donald Trump's tariff powers, it could complicate the implementation of Seoul's investment commitments and prompt him to intensify trade pressure. The $350 billion investment agreement between Seoul and Washington is unlikely to be overturned, as expanding U.S. manufacturing has bipartisan support. However, the political fallout from the Republican defeat could put pressure on Trump to demonstrate progress on his trade agenda, with Korea potentially facing renewed tariff threats, the experts said. "The tools used to exert tariff pressure are unlikely to change," said Jang Sang-sik, head of trade trend analysis at the Korea International Trade Association, referring to Section 232 and Section 301 of the U.S. trade law, which provide the administration with legal grounds to impose tariffs. "Congress has largely delegated these powers to the administration, allowing the executive branch

2h agoBy Lee Gyu-lee

Democratic midterm gains may fuel fresh trade uncertainty for Korea

Korean won to strengthen against dollar following Democrats' midterm sweep

The Korean won is expected to strengthen against the U.S. dollar after Democrats swept both chambers of Congress in the U.S. midterm elections, as political tensions in Washington and a potential sell-off in U.S. equities could weigh on the dollar, experts said Wednesday. Democratic control of Congress is expected to complicate U.S. President Donald Trump's efforts to advance his economic agenda, including tax cuts and expanded government spending, while giving lawmakers greater power to scrutinize his administration's policies. The prospect of a prolonged standoff between the White House and Congress could unsettle investors and undermine confidence in U.S. financial markets, said Shin Se-don, an economics professor at Sookmyung Women's University. "A fierce confrontation between Congress and the Trump administration will be inevitable. Trump's economic policy initiatives could face setbacks as Democrats step up opposition to the administration's policies, potentially slowing growth across the broader U.S. economy," Shin said. The political fallout could spill over into financial market

2h agoBy Lee Hyo-jin

Korean won to strengthen against dollar following Democrats' midterm sweep

Hyundai Motor Group faces lasting US policy risks after midterms

Hyundai Motor Group's massive investment in the United States is unlikely to shield the automaker from Washington's shifting trade policies, even after Democrats secured control of both chambers of Congress in Tuesday's (local time) midterm elections, a trade expert said Wednesday. The Democratic takeover of the House of Representatives and Senate is expected to strengthen congressional scrutiny of U.S. President Donald Trump's trade agenda, but is unlikely to fundamentally reverse Washington's push to revive domestic manufacturing, according to Shin Won-kyu, head of the global economic research team at the Federation of Korean Industries (FKI). The automaker remains particularly vulnerable to changes in U.S. tariff and trade policies because of its growing investment in local factories and supply chains, which could limit its flexibility in responding to future policy shifts, the expert said. "The biggest risk is weakened bargaining power after the investment is made," Shin said in a written interview with The Korea Times. "Plants cannot easily be moved once built, while tariff rates o

4h agoBy Lee Min-hyung

Hyundai Motor Group faces lasting US policy risks after midterms

Democrats seize US Congress in sweeping midterm repudiation of Trump

WASHINGTON — Democrats seized control of both the Senate and House on Tuesday, scoring sweeping victories in Republican strongholds for the first time in generations as tens of millions of voters delivered a scathing rebuke to President Donald Trump. Voters in conservative bastions who had propelled the president to his second term in office just two years ago swung dramatically toward Democrats, fueled by deep frustration over the unpopular war with Iran, anxiety over the high cost of living and anger at Trump's stewardship of the country. Kansas elected its first Democratic senator since the Great Depression nearly a century ago. In South Carolina, a state that Trump carried by nearly 18 points in 2024, Democrats turned aside his hand-picked Senate candidate. And in Texas, the biggest Republican state, Democrats ended a decades-long losing streak in seismic fashion, winning a Senate seat and ousting three-term Governor Greg Abbott. The results will usher in a new era of divided government in Washington, following two years in which the Republican-controlled Congress rarely exercised

7h agoBy Reuters

US Midterms