Finance ministry convenes semiconductor experts to weigh AI policy risk

South Korea's finance ministry convened a meeting of semiconductor industry and research experts in Seoul on Friday to review AI policy in major economies and the outlook for the global chip industry, with a senior official flagging uncertainty over US policy after the midterm elections.

Kang Ki-ryong, deputy minister at the Ministry of Economy and Finance, chaired the gathering at 2 p.m. at the government complex in Seoul, the ministry said. Participants discussed investment plans at major AI companies, the spread of agentic AI and the risks facing chip supply and demand.

The attendees concluded that the medium- and long-term growth prospects for the AI and semiconductor industries remain intact, citing large-scale investment by leading AI firms and expectations that wider use of agentic AI will lift chip demand. They also said no clear signal has yet emerged that AI investment or semiconductor demand is contracting, despite some concern in financial markets, and projected demand would stay on a stable footing, pointing to the expansion of long-term supply agreements by Korean chipmakers.

Kang said uncertainty over AI industrial policy could persist for some time following the US midterm elections and could affect financial markets and the real economy at home and abroad. "We will continue close communication with semiconductor experts and carefully monitor the global AI and semiconductor industries and AI policy trends in major countries," he said.