Financial policymakers to monitor US AI, trade policies following election

Korea's key financial policymakers on Thursday vowed to closely monitor potential changes in U.S. policies on artificial intelligence (AI) and trade and their implications for the Korean economy.

Finance Minister Lee Hyoung-il discussed the issues with Bank of Korea (BOK) Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin after the U.S. Democratic Party secured a huge win in the midterm elections this week.

During the meeting, the officials noted that despite gains in major stock markets in the United States and Europe, concerns over tighter regulation of the AI industry had led to declines in semiconductor shares.

The participants exchanged views on possible changes in Washington's fiscal, trade and industrial policies following the election outcome and vowed to closely keep tabs on policy and the regulatory environment, as well as U.S. tariffs and developments in the Middle East war.

"The officials agreed to step up efforts to promote stable growth of the Korean economy by addressing changes in the external environment through close coordination among relevant organizations and thoroughly preparing for a possible increase in financial market volatility," the finance ministry said.