As concerns about data center regulation grew following the U.S. Democrats’ takeover of Congress, the KOSPI plunged more than 5%, falling below the 5,400 mark. With foreign investors’ selling focused on large-cap semiconductor stocks such as Samsung Electronics and SK Hynix, individual investors who had recently bought semiconductor and power infrastructure stocks were also caught in the sharp sell-off. According to the Korea Exchange (KRX), the KOSPI closed at 5,383.80 on the 5th, down 300.00 points (5.28%) from the previous trading day. The index opened at 5,580.09, down 1.82%, and briefly recovered the 5,500 mark in the morning, but losses widened in the afternoon. The KOSDAQ also closed at 678.41, down 36.54 points (5.11%) from the previous trading day, falling below 700 as well. Sell-sidecars were triggered intraday on both the KOSPI and the KOSDAQ. Stocks bought by individual investors over the past month also fell sharply. From the 2nd of last month through the 4th of this month, individuals were net buyers of Samsung Electronics and SK Hynix, purchasing 3.9915 trillion won and 1.6353 trillion won, respectively. Including Samsung Electro-Mechanics (1.1977 trillion won) and Samsung Electronics Co., Ltd. Preferred Shares (856.2 billion won), net purchases of the four stocks totaled 7.6806 trillion won. Stocks linked to power infrastructure and the AI value chain, including Hyosung Heavy Industries (450.5 billion won), Doosan Enerbility (430.6 billion won) and SK Square (305.3 billion won), were also among the most heavily net-bought. Samsung Electro-Mechanics closed at 944,000 won on the day, down 15.34% from the previous trading day. SK Hynix closed at 1,264,000 won, down 9.46%, while Samsung Electronics fell 7.57% to 201,500 won. Samsung Electronics Co., Ltd. Preferred Shares (-6.58%), SK Square (-10.01%), Hyosung Heavy Industries (-12.59%) and Doosan Enerbility (-6.45%) also all fell. Analysts say concerns that the U.S. Democrats’ takeover of Congress could increase the burden of data center permitting and power costs weighed on semiconductor and AI infrastructure stocks. However, some expect that data center construction will not be halted altogether, but that investment schedules may be delayed and costs may rise. The data center capacity that could be affected by regulation is estimated at up to 13 GW, or about 8% of the 150 GW expected to be added by 2035. Analysts are giving little weight to the possibility that delays in capital expenditure will lead to lower memory demand. Kim Young-gun, an analyst at Mirae Asset Securities, said, “Selling in memory stocks is excessive,” and assessed that “hyperscalers’ capital expenditure demand is better viewed as being deferred sequentially rather than declining.” Some also believe that delays in data center investment are not enough to change the growth trajectory of the AI industry. Park Hye-ran, an analyst at Samsung Securities Co., Ltd., said, “Contrary to market expectations that a great many things would change, it is becoming clear that actual changes will take time. As concerns subside, the rally could resume.” [email protected] Bae Han-geul, Lee Jeong-hwa Reporter