# South Korea Pushes AI Infrastructure Expansion Despite Global Market Volatility Government officials urge sustained domestic AI investment to counter potential US regulatory slowdowns. - **Source:** [Kyunghyang](https://www.khan.co.kr) - **Published:** 2026-11-06 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/30fbb37c-8ec8-4f2c-9230-7a3455795eb7 ## Strategic Investment Call South Korean Deputy Prime Minister Bae Gyeong-hun emphasized that the nation must maintain its AI infrastructure momentum. Despite concerns over potential US regulatory shifts following recent elections, the government views any American investment slowdown as temporary. Officials argue that Korea should leverage this period to strengthen its global competitiveness. ## Market Volatility Impact Global financial markets reacted sharply to the prospect of stricter US data center regulations. The Philadelphia Semiconductor Index plummeted 12.25% on November 5, marking its largest drop in over six years. Domestic markets followed suit, with Samsung Electronics and SK Hynix shares falling by 6.35% and 10.44% respectively on November 6. ## Global Competitive Landscape The government warns that while the US market experiences uncertainty, other nations are actively seizing the opportunity. Countries including China, France, and Canada are accelerating their AI development strategies. Officials believe Korea must respond rapidly to these international shifts to avoid losing its strategic position in the global AI race. ## Ambitious Infrastructure Targets South Korea has established a clear roadmap for domestic AI data center capacity. The government plans to construct 8.4 gigawatts of capacity by 2029, with an additional 10 gigawatts targeted by 2035. These infrastructure goals remain central to the national strategy despite current fluctuations in global investor sentiment and market stability. ## Budgetary Expansion Debate Lawmakers are currently debating the adequacy of existing financial support for AI infrastructure. During a parliamentary session, Representative Hwang Jeong-a suggested that the current 200 billion won budget for direct AI data center projects should be doubled. Increasing this funding is viewed as essential to achieving status as a dominant AI power. ## Frontier AI Development Goals Beyond physical infrastructure, the government is prioritizing the development of frontier AI capabilities. The core objective is to create a domestic structure capable of building massive, ultra-large AI models. Officials are currently evaluating the best methods to scale development to levels significantly beyond existing technological benchmarks to ensure future innovation. ## Cybersecurity Governance Shift In response to evolving digital threats, the government is considering the creation of a 'cybersecurity czar' position. Deputy Prime Minister Bae confirmed that discussions are underway between the National Security Office, the Prime Minister's Office, and relevant ministries to establish a comprehensive response system that effectively integrates public, private, and military sectors. ## Long-term Market Outlook Despite short-term volatility, the government maintains a positive long-term outlook for the AI sector. Officials believe that while market sentiment is sensitive to minor disturbances, the underlying trend for AI remains upward. Sustained domestic investment is considered the primary mechanism for navigating current global uncertainties and securing long-term economic growth. ## Sources covering this story - [Kyunghyang — South Korea Urges Continued AI Infrastructure Investment Amid US Market Volatility](https://www.khan.co.kr/article/202611061805001/?utm_source=khan_rss&utm_medium=rss&utm_campaign=total_news) - [Source — South Korea Eyes AI Infrastructure Expansion Amid US Policy Shifts](https://www.chosun.com/economy/tech_it/2026/11/06/OA4J6GA4XFDLRFVMTM7ZJLA3JM/) - [Source — South Korea Urged to Expand AI Data Center Investments Amid US Slowdown](https://www.chosun.com/jp/economy-jp/2026/11/06/J4Q3EQ53A5GRRCVYW7PBNA7ZEE/) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._