SEOUL — South Korean President Lee Jae Myung, alongside executives from Samsung and SK Hynix, announced corporate investment pledges totaling at least US$880 billion for the country's artificial intelligence (AI) and semiconductor sectors. These pledges include US$500 billion designated for the construction of new chipmaking plants located outside of Seoul.

The Ministry of Finance in South Korea has stated that the concentration within the semiconductor sector is increasing market-wide volatility. Six of the Kospi index's 12 historical circuit-breaker halts occurred in 2025. The Kospi index reached a high increase of 116% year-to-date, but has since declined by 20% from its June highs.

President Lee Jae Myung emphasized the importance of balanced development, stating, "Balanced national development is no longer merely a policy objective — it has become a national survival strategy." The Bank of Korea is coordinating with other agencies to address concentration risk. The Financial Supervisory Service is monitoring the effects of newly launched single-stock leveraged exchange-traded funds that are tied to chipmakers.

Semiconductors account for 41.2% of South Korea's total exports. This share increased by 18.3 percentage points from the previous year. South Korea recently provided more than US$102 billion in incentives for the AI sector. Samsung Electronics reported an 1,800% year-on-year increase in profit and sales that nearly doubled the previous year's figure. SK Hynix stock has seen an increase of 639% year-to-date.

Charu Chanana, chief investment strategist at Saxo Markets, remarked on the market conditions. "Markets need confident guidance, durable pricing power and proof that AI demand is still accelerating," Chanana said.