AI regulation concerns could ripple into global markets; Seoul to strengthen ties with US administration, Congress

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il speaks at a meeting of ministers on external economic affairs held at the Government Complex Seoul in Jongno-gu, Seoul, on Friday. [Yonhap]
Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il speaks at a meeting of ministers on external economic affairs held at the Government Complex Seoul in Jongno-gu, Seoul, on Friday. [Yonhap]

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said Friday that the government would take proactive steps to prevent excessive volatility in South Korea's stock market.

Speaking at a meeting of ministers on external economic affairs at the Government Complex Seoul on Friday morning, Lee said relevant agencies would "preemptively devise necessary measures and implement them in a timely manner to prevent our stock market from overreacting relative to economic fundamentals."

Lee described the US midterm elections, held Tuesday (local time), as "an important turning point for the global economy," warning that concerns over tighter AI industry regulation had triggered a sharp drop in US markets the previous day and that spillover effects on global markets could not be ruled out.

"Experts forecast that AI investment will continue, and the fundamentals of our economy are more solid than ever," Lee said. "The government will closely monitor external uncertainties while also creating new opportunities for cooperation."

Lee said the government would proactively assess changes in US trade measures — including tariffs and export controls — as well as shifts in industry support policies requiring congressional legislation or budget approval, and examine their potential impact on South Korean companies.

Lee added that South Korea would work through close interagency coordination to ensure the stable implementation of existing trade agreements with the United States. The government would also strengthen communication with the US administration, Congress and state governments to support steady exports and investment and expand opportunities in strategic industries such as shipbuilding and energy.


oskymoon@heraldcorp.com