The South Korean stock market is focused on the upcoming US-China summit scheduled for September 24, as it struggles to surpass the 7000-point mark.
This summit is expected to address a wide range of issues, including President Donald Trump's exit strategy from the Iran conflict, trade policies with China, AI regulation, and export policies for critical minerals such as rare earth elements. The outcomes could serve as significant indicators for future international relations.
Notably, Samsung Electronics and SK Hynix, which are crucial to the South Korean stock market, are deeply involved in the US-China supply chains for advanced semiconductors and AI. Analysts suggest that the summit's results could significantly alter the export environment, impacting not just individual stock prices but the overall supply and demand in the domestic market.
According to industry sources on September 20, Chinese President Xi Jinping will skip the UN General Assembly in New York and instead travel to Washington, where he will meet with President Trump at the White House on September 24. This will be Xi's first visit to the White House in 11 years, and Trump is expected to personally greet him at the airport.
During the summit, the two leaders will discuss various economic issues, including AI systems, export regulations for rare earth elements, and tariffs. The South Korean market is particularly attentive to discussions surrounding open-weight and closed-weight models in AI. Open-weight models allow for the public disclosure of AI model weights for customization, while closed-weight models restrict access to AI services provided by the company without disclosing weights.
Chinese AI companies, such as DeepMind, have been developing AI using open-weight models to catch up with the US. However, the US views this as a form of technology theft and is advocating for stricter regulations. Earlier, US Treasury Secretary Scott Vessen announced that discussions on open-weight and closed-weight models would be a key agenda item in high-level negotiations before the summit, stating, "This will help avoid common risks faced by both countries and prevent the separation of our AI systems."
US regulations on semiconductor exports to China are directly linked to the exports of Samsung Electronics and SK Hynix, which support the South Korean stock market. If discussions on open and closed-weight models lead to stricter US regulations on China, it could create a favorable environment for South Korean semiconductor investments. A securities industry official noted, "Following last week's US interest rate hike, this week's sentiment will significantly shift based on the semiconductor regulatory direction from the US-China summit. If China's low-cost AI development pathways are restricted, it will create a favorable environment for South Korean semiconductor exports, improving KOSPI supply and demand."
* This article has been translated by AI.
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