Concerns Rise for Korean Firms as Democrats Control Congress
As President Donald Trump reaffirms his commitment to existing policies, the Democratic Party's control of both chambers of Congress, termed the 'Blue Wave,' has heightened sensitivity among South Korean companies regarding their operations in the U.S. Major conglomerates, led by Samsung and SK, are expected to prioritize the analysis and potential revision of their U.S. investment strategies during year-end management strategy meetings.
According to industry sources on November 10, the primary concern for South Korean firms following the Democrats' midterm election victory is the conflicting demands from the executive branch and Congress. While the Trump administration continues to push for sustained investment and expedited execution, the newly Democratic-led legislature is likely to focus on tangible outcomes such as local employment, supply chain contributions, and community benefits rather than just the pace of investment.
For instance, the FIRM Act (Foreign Investment Risk Review Modernization Act), proposed by Democrats in June, includes provisions for establishing an independent body to oversee compliance with investment commitments and assess their impact on American workers and communities. Although President Trump is expected to veto the legislation, the scrutiny from Congress is anticipated to intensify.
Regulatory measures related to business operations in the U.S. are also expected to tighten. Unlike the pro-business stance of the Trump administration, the Democrats are likely to introduce various anti-business regulatory policies. For example, the rapid proliferation of artificial intelligence data centers in the U.S. may soon require environmental and social assessments in most states before construction can proceed.
Nvidia's Market Value Plummets Amid CEO Controversy
Nvidia's stock price plummeted on November 9 as concerns surrounding CEO Jensen Huang's management risks came to the forefront. The company's market capitalization evaporated by approximately $192.1 billion (about 258 trillion won) in just one day.
On the New York Stock Exchange, Nvidia shares closed at $178.67, down 4.3% from the previous trading day, with intraday losses reaching as high as 8.8%. This decline contrasts sharply with the rebound of major tech stocks on the same day.
As a result, Nvidia's market capitalization fell to about $431 billion, widening the gap with Apple, which has a market cap of approximately $510 billion, by about $79 billion.
The drop in stock price also led to a $7.4 billion decrease in Huang's personal wealth, causing him to fall two spots from eighth to tenth on Forbes' list of the world's billionaires.
This situation stems from Huang's acknowledgment of infidelity allegations, which he publicly admitted and apologized for the day prior. The woman involved, identified as Alice Huang, is suspected of being a Chinese spy, prompting Nvidia's board to announce an independent investigation into the relationship between Huang and Alice Huang.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.