South Korea says it will closely monitor potential changes in United States economic, trade and technology policies following the Democratic Party’s gains in the US midterm elections, amid concerns about the impact on its export-driven economy.

Seoul is particularly concerned about possible shifts in Washington’s approach to artificial intelligence (AI) regulation, semiconductor policy and tariffs, all of which are critical to South Korea’s economic relationship with the United States.

The announcement followed an emergency consultation led by Finance Minister Lee Hyoung-il and senior government economic officials to assess the possible implications of the election results for South Korean industries and international trade.

Concerns Over Semiconductor and AI Industries

South Korea’s concerns come as its technology sector remains heavily dependent on access to the US market and cooperation with American companies. Any changes to semiconductor incentives, technology export controls or AI regulations could have significant consequences for major South Korean manufacturers.

Officials also noted that concerns about tighter regulation of the AI industry had contributed to declines in semiconductor shares, despite gains in major US and European stock markets.

The election results could also increase congressional scrutiny of the Trump administration’s trade and industrial policies. However, analysts caution that Democratic control of Congress does not automatically mean existing US tariffs will be reversed, as the president retains significant authority over trade measures.

Seoul Seeks Stability in US-South Korea Relations

South Korea is also reviewing its existing trade and investment commitments with Washington, including a reported $350 billion US investment arrangement.

The government intends to maintain communication with the Trump administration and incoming lawmakers to protect bilateral economic cooperation and minimise uncertainty for South Korean businesses.

The developments highlight the importance of the US midterm elections beyond American domestic politics, with their outcome potentially influencing international trade, technology investment and global supply chains.

For Seoul, the immediate priority is to prepare for possible policy changes while protecting its semiconductor industry, export markets and broader economic partnership with the United States.

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