Korea’s AI investment supercycle is still lifting Samsung Electronics and SK hynix as U.S. hyperscalers pour huge sums into data centers and computing infrastructure. But market participants at the KB Jefferies Korea Conference in Seoul said the boom is becoming more fragile as financing conditions tighten and geopolitical shifts raise competitive risks. Christopher Wood warned that a sharp rise in the U.S. 10-year Treasury yield could threaten equities, while former Bank of Korea Gov. Rhee Chang-yong said Chinese chipmakers could catch up quickly if they use rising cash reserves to invest during a downturn.
Participants attend the 2026 KB Jefferies Korea Conference at the Fairmont Ambassador Seoul, Wednesday. Korea Times photo by Lee Yeon-woo
Korea has been one of the clearest winners of the global artificial intelligence (AI) boom, as U.S. hyperscalers pour hundreds of billions of dollars into data centers and computing infrastructure, driving demand for memory chips made by Samsung Electronics and SK hynix.
Chipmakers are benefiting from those investments even without having to prove that AI itself can generate adequate returns. For now, the cycle remains firmly in Korea's favor.
But the foundations of that boom are becoming more fragile, according to global market participants gathered at the KB Jefferies Korea Conference at the Fairmont Ambassador Seoul, Wednesday.
