00:00It's Saturday, November 7th. Here's why global investors are paying attention to Korea today.
00:05Three stories, one signal. Fiscal stress in Europe, a currency shock in Seoul,
00:11and a labor dispute that could reshape chip supply. The French National Assembly voted down
00:16the government's 2027 budget, unanimously, with 458 votes against. The plan aimed to cut the
00:23deficit by 54 billion euros, roughly 82 trillion won, through spending cuts and revenue measures.
00:30It's now off the table. France's public debt is now projected to reach 121.7% of GDP next year.
00:37The 30-year French government bond yields about 5.33%, the highest in the G7. Here's what the
00:44numbers show. The spread between French and German 10-year bond yields widened to 178 basis points last
00:51month. That is the widest since the eurozone debt crisis in 2012, and wider than Italy or Greece.
00:57Protests followed, with more than 600,000 people joining nationwide on Thursday,
01:03the largest turnout in recent weeks. Now turn to Seoul. The one took a sharp hit after the U.S.
01:09midterm elections delivered a Democratic sweep of both chambers. On November 6th, the dollar one rate
01:15closed at 1,356.61 at the 3.30 p.m. reference point, up 14.51 from the previous session.
01:23That is the
01:24biggest one-day move in six months, driven by concerns over tighter AI data center rules and
01:30weaker chip demand. Here's the number that matters most. Analysts see the one possibly testing 1,380
01:37by year-end. If chip investor sentiment keeps deteriorating, foreign equity outflows are adding
01:43pressure, though exporters' dollar sales are limiting the upside. Korea's current account surplus and
01:49relatively solid growth should keep the one from a sustained decline. And finally, Idaho. No, Boise.
01:56Wait. Let me correct that. The third story is Micron. The U.S. memory chipmaker halted construction
02:03of its new fab in Tawuan, Taiwan, after failing to reach a wage and bonus agreement with a local union.
02:09The planned investment was between $3 billion and $4.5 billion, aimed at high-bandwidth memory
02:15production starting in 2028. Taiwan accounts for roughly 60% of Micron's total DRAM output,
02:22so this dispute matters far beyond one plant. Earlier, we said Taiwan's production base sits
02:27at the center of the story. Here's the risk. If labor talks stall, Micron may have to rethink its
02:34Taiwan-centered production strategy. So what does this mean for global investors weighing Korea exposure?
02:39Three things to track. First, the French fiscal crisis shows how quickly bond spreads can widen
02:45when governments lose control of budgets. Second, the one sensitivity to chip sentiment means Korea's
02:51currency now moves with the AI cycle. Third, the Micron dispute highlights labor risk in the memory
02:58supply chain. Each of these shapes whether to add, hedge, or rotate away. For global investors,
03:04the key questions are hedging costs, sector rotation, and how much Korea's chip exposure is now a currency
03:11bet in disguise. Here's what to watch next. The next French protest date is November 20th in Paris,
03:17the one's reaction to U.S. chip policy headlines, and whether Micron and its Tawuan union reach a deal
03:24before the 2028 production target comes under pressure. That's today's AI Prism, Global Investors.
03:30This episode was produced with AI Assistants based on Seoul Economic Daily Reporting.
03:36AI Prism is a Juan IFRA award-winning series. We'll be back tomorrow.
