[Morning Briefing] US Announces AI Semiconductor Export Controls… First Hearing Date for Yoon's Impeachment

◆ New York Stock Exchange Closes Mixed Amid Rising Treasury Yields

Overnight, the New York Stock Exchange closed mixed amid rising Treasury yields and weak tech stocks. At the New York Stock Exchange early this morning, the Dow Jones Industrial Average rose 0.86% and the S&P 500 Index increased by 0.16%. In contrast, the Nasdaq Composite Index fell by 0.38%. In the New York bond market today, the 10-year US Treasury yield reached 4.802%, marking its highest level since last October. Rising Treasury yields typically encourage interest rate hikes, which can burden the stock market. NVIDIA fell by 1.97% due to the Biden Administration's additional semiconductor export restrictions. Tesla rose by 2.2%. Quantum computing stocks, including Rigetti Computing and IonQ, fell sharply by 32.2% and 13.8%, respectively.

◆ US Expands AI Semiconductor Export Controls

The Biden Administration announced additional export controls on AI semiconductors a week before the end of its term. The key content is to limit export volumes to over 100 countries that are neither allies nor countries of concern, in addition to the existing measures controlling exports to 22 countries of concern, including China, Russia, and North Korea. Non-verified end users in the middle zone cannot purchase more than 50,000 graphic processing units essential for AI development allocated to each country. However, 18 allied countries, including Korea, are not subject to restrictions on AI semiconductor sales. As exceptions are applied, there is no immediate significant impact, but if exports to middle-zone countries, including China, are restricted, our companies are expected to be inevitably affected in the long term.

◆ First Hearing Date for Yoon's Impeachment

The Constitutional Court will hold the first hearing related to President Yoon Suk-yeol's impeachment case at 2 PM today. However, as President Yoon has stated he will not attend, the substantive hearing is expected to begin from the second date on the 16th. If he does not attend, the date will be rescheduled, and today's first hearing is likely to end immediately after confirming President Yoon's absence. However, the Constitutional Court plans to proceed with the substantive hearing from the second hearing date, regardless of President Yoon's attendance. Major issues of the impeachment trial, such as the declaration of martial law, the announcement of Proclamation No. 1, interference with parliamentary activities using the military and police, and warrantless searches of the Central Election Commission, will be addressed in earnest from this point.

◆ Likely Re-execution of Yoon's Arrest Warrant Tomorrow

The High-ranking Officials' Crime Investigation Office (CIO) and the police, which failed to execute the first arrest warrant for President Yoon Suk-yeol on the 3rd, are expected to re-execute the warrant as early as tomorrow. The leadership of the Metropolitan Investigation Unit, including the heads of the Seoul, Southern Gyeonggi, and Northern Gyeonggi Police Departments, held a second meeting related to the execution of the arrest warrant at the Mapo office of the Seoul Police Department yesterday. As it is a large-scale operation involving around 1,000 criminal officers, specific operational plans to enter the fortified residence in Hannam-dong with barricades and barbed wire were reportedly discussed. They plan to hold a third meeting today to further discuss the arrest operation. It is widely expected that the execution will proceed tomorrow based on the results of the third meeting.

◆ Snow and Rain in Central Regions Until Morning

On Tuesday, there will be places where rain or snow falls mainly in the central regions until the morning. The fine dust concentration is at a 'bad' level in most parts of the country, so respiratory management is necessary. According to the Korea Meteorological Administration, rain or snow will fall in the metropolitan area, inland and mountainous areas of Gangwon, inland areas of Chungcheong, eastern Jeonbuk, northern inland and northeastern mountainous areas of Gyeongbuk, and will mostly stop in the morning, but some areas in inland and mountainous areas of Gangwon will continue until the morning. In the southwestern inland areas of Gyeongbuk and northwestern inland areas of Gyeongnam, raindrops of less than 0.1mm or snowflakes of less than 0.1cm will fall from dawn to morning. The morning's lowest temperature is expected to be between -6 and 3 degrees Celsius, and the highest temperature during the day is expected to be between 2 and 12 degrees Celsius.

No Jeong-dong Hankyung.com Reporter dong2@hankyung.com