Park: "Recent Stock Market Correction Signals Semiconductor Overreliance... Must Be Taken Seriously"

Park Honggeun, Minister of Planning and Budget, answers lawmakers’ questions at a plenary meeting of the National Assembly’s Special Committee on Budget and Accounts on Nov. 10, 2026. Photo by Yoon Dongju

Park Honggeun, Minister of Planning and Budget, said the recent stock market decline "should be taken seriously as a signal about the structure of the Korean economy, which is heavily concentrated in semiconductors."

According to the Ministry of Planning and Budget, Park made the remarks at an expert meeting held that day at the National Assembly Members' Office Building to review economic trends following the U.S. midterm elections.

He said the election results are expected to bring considerable changes to the U.S. policy landscape. He also noted that rising volatility in domestic and global financial markets could have spillover effects on the Korean economy, which has a high concentration of semiconductors.

At the meeting, experts discussed the potential effects of U.S. proposals to regulate artificial intelligence (AI) data centers on the semiconductor industry and fiscal conditions.

Park said the government would use the recent market correction as an opportunity to reduce risks stemming from the economy's reliance on semiconductors and pursue industrial diversification by investing in next-generation growth engines, including the seven SEED initiatives.

Participants agreed that industrial diversification is necessary, while noting that cutting AI investment would be difficult amid global competition for technological dominance and that the earnings foundations of Korean companies remain solid, supported in part by an expansion of long-term supply agreements (LTAs).

The meeting was attended by Kwon Nam-hoon, president of the Korea Institute for Industrial Economics and Trade; Joo Won, head of the research division at Hyundai Research Institute; Park Eun-gyun, director of KOTRA's Regional Trade Research Office; Park Jong-hoon, chief economist at SC; and Choi Kyung-jin, president of the Korea Association for Artificial Intelligence and Law.

Referring to the fact that the cost of living and inflation emerged as key issues in the U.S. midterm elections, Park stressed, "If people do not feel the benefits of growth, the drivers of growth could also weaken."

He said the government would strengthen support for vulnerable borrowers by using excess tax revenue to lessen the impact of high interest rates and prices on vulnerable groups, and would proceed without disruption with three key livelihood projects covering jobs, housing, and financial services for ordinary people.

This content was produced with the assistance of AI translation services.