Trillion Won

• The world's nine largest cloud providers are projected to increase capital spending by 90% to $886.7 billion (approximately 1,260 trillion won) in 2025. • Microsoft is exceeding spending expectations to maintain its AI lead, while competitors like Google and Meta show signs of hesitation. • This surge in investment is triggering increased scrutiny from the U.S. Congress and state attorneys general regarding AI security and regulatory oversight.

• The KOSPI closed 0.97% higher at 6,755.75, despite a significant selloff of nearly 2.9 trillion won by foreign investors. • Market gains were driven by Samsung Electronics (+1.80%) and SK hynix (+3.24%) following cooperation plans with Nvidia, Microsoft, and OpenAI announced at the San Francisco AI Summit. • The session remained volatile as the market debut of China's CXMT rattled semiconductor stocks, offsetting some of the positive momentum.

• KOSPI margin calls have reached 50 billion won for two consecutive days as investor deposits drop below the 110 trillion won threshold. • This surge in margin calls reflects increasing market volatility and downward pressure on South Korean equities, despite some Wall Street banks suggesting the market has hit a bottom. • The situation is critical as it signals a potential liquidity crunch for retail investors who leveraged their positions in stocks like SKhynix and LG Innotek.

• South Korea's digital industry revenue grew 9.3% year-on-year to reach 1,378 trillion won in 2024, fueled largely by the rapid adoption of artificial intelligence. • A government survey revealed that national digital maturity has increased to 75.4%, reflecting a broader systemic shift toward digitalization. • Cloud computing (52.0%), AI (43.5%), and big data (29.1%) emerged as the top three technologies developed or adopted by companies over the last three years.

• South Korea experienced a significant tourism boom in April, with Seoul alone welcoming over 1.5 million foreign visitors. • China emerged as the primary driver of this surge, leading other major contributing markets including the United States, Japan, Taiwan, and the Philippines. • The influx of tourists resulted in a massive economic boost, with total visitor spending soaring to 1.15 trillion won.