South Korea

Intelligence for Better Decision Making

Shifting Dynamics in South Korea’s Semiconductor Industry Amid Global Competition

Jan. 8, 2026 | Competitiveness

South Korea’s semiconductor industry demonstrates robust global leadership alongside evolving challenges, supported by strategic domestic and international policies.

**South Korea’s semiconductor sector relies on SK Hynix and Samsung Electronics, which together control 80 percent of the global high-bandwidth memory market.**
This hardware dominance supports a domestic full-stack AI environment built on advanced 5G networks, proprietary models such as Naver’s HyperCLOVA X, and extensive data streams from super apps like Kakao and Naver. The country also leads the world in industrial robot density, strengthening its capabilities in physical AI applications.

**However, the ecosystem faces internal challenges including a shrinking AI talent pool as skilled professionals migrate to US tech firms, leaving South Korea last among OECD countries in net AI talent inflow.**
Companies rely heavily on American AI platforms and foreign capital for data infrastructure, while stringent data regulations restrict training. Occasional power shortages also threaten operational stability in semiconductor fabs.

**Micron Technology is expanding its next-generation HBM4 capacity to 15,000 wafers per month by 2026—roughly 30 percent of its planned 55,000-wafer total—to meet demand from NVIDIA’s “Vera Rubin” AI accelerator.**
The company has already begun equipment investments, plans to boost output in the second quarter, and will launch HBM4 mass production in February. Micron, Samsung, and SK Hynix will coordinate supplies according to NVIDIA’s performance evaluations in the first half of the year. By year-end, an advanced packaging plant in Singapore and, in the second half of 2027, Micron’s Hiromisa plant in Japan will add further capacity.

**China’s semiconductor industry has closed the gap with South Korea, surpassing it in system chip design, infrastructure, and a network of over 3,500 fabless companies versus South Korea’s roughly 150.**
The Korea Institute for Industrial Economics and Trade reports that China outperforms South Korea in 19 out of 30 semiconductor-industry criteria—ranging from R&D to pricing and finished-product services—despite US sanctions. Huawei and Cambricon now produce advanced AI chips domestically, and China pursues leadership across robotics, electric vehicles, batteries, and self-driving cars under its “China Standards 2035” initiative, including the first national standard for EV solid-state batteries.

**The government and ruling party have designated semiconductors as a core growth engine in their 2026 economic strategy, advancing the Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry toward final approval.**
The act aims to position South Korea among the world’s top two semiconductor powers. The economic plan also targets growth in defense, biotechnology, and cultural exports, restructures petrochemicals and steel, advances AX and GX transitions, and promotes regional development through RE100 industrial complexes and gift certificate programs. Financial measures include macroeconomic interventions, long-term domestic stock investment via the National Growth Fund, and tax incentives to channel liquidity into high-growth and venture capital funds.

Autonomous Driving and Robotics Breakthroughs Unveiled at CES 2026

Jan. 8, 2026 | Technology & Innovation

Leading automotive and technology firms revealed groundbreaking robotic and autonomous driving innovations at CES 2026 in Las Vegas.

**On January 6, Chung Eui-sun, Chairman of Hyundai Motor Group, attended CES 2026 to explore cooperation opportunities with major technology companies.**
His visit, following an economic delegation tied to President Yoon Suk-yeol’s state visit to China, represents Hyundai’s effort to strengthen ties with leading tech firms and accelerate progress in robotics and autonomous driving.

**At Hyundai’s booth, Chung reviewed demonstrations of its next-generation robot platform Mobed, the humanoid robot Atlas, and the Ioniq 5 robotaxi.**
He met with executives from Boston Dynamics and Google DeepMind Robotics to discuss technology roadmaps and integration challenges. This initiative reflects Hyundai’s strategy to integrate advanced robotics into its future mobility solutions.

**Chung explored Qualcomm’s high-performance Dragonwing IQ10 processor, signaling Hyundai’s interest in diversifying its chip partnerships beyond NVIDIA and Google.**
He also tested LG Electronics’ AI cockpit and autonomous driving systems for potential use in Hyundai vehicles. At Samsung Electronics, he proposed joint robotics initiatives to President No Tae-moon.

**He concluded the day with NVIDIA CEO Jensen Huang, reaffirming an October agreement for Hyundai to acquire 50,000 Blackwell AI chips.**
Both leaders pledged to fast-track the development and deployment of Hyundai’s proprietary AI models, leveraging this AI infrastructure to enhance in-vehicle intelligence and autonomous capabilities.

**Meanwhile, NVIDIA launched Alpamayo, its first AI system specifically for self-driving cars.**
After the launch, Jensen Huang discussed the new platform with Mercedes-Benz Chairman Ola Källenius and Executive Chair Euisun Chung. Industry speculation suggests Hyundai may adopt Alpamayo to advance its autonomous driving efforts, as it currently trails competitors like Tesla in Level 2+ technology and aims to introduce similar systems in mass-market vehicles by the end of 2027.

**Mercedes-Benz became the first automaker to adopt Alpamayo, incorporating the AI-powered system in the upcoming CLA model debuting in the US in Q1 2026 before a broader rollout.**
Alpamayo’s open-source framework combines vision-language-action models for interpreting visual data, large reasoning modules for complex scenarios, simulation tools for rare or hazardous events, and open datasets for extensive training and validation.

**Addressing concerns about memory supply, Huang emphasized NVIDIA’s role as a leading user of HBM4 high-bandwidth memory technology and cited strong support from Samsung Electronics and SK hynix.**
He said NVIDIA’s demand will drive expanded production capacity, minimizing the risk of shortages and ensuring a steady supply for AI chip development.

Monitored Intelligence for South Korea - Jan. 9, 2026

News
Media
278

Government
Releases
16

City/State
Releases
28

Embassy
Releases
0

Foreign
Service
Advisories
0

Academic/
Think
Tank
3

Podcasts
0

Videos
0

Social
Media
0

Business
Releases
0

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Lee calls for closer partnership between S. Korean, Chinese startups

Yonhap | English | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

President Lee Jae Myung called for stronger cooperation between South Korean and Chinese startups to create synergies that drive innovation and new growth. Speaking at the Korea-China Venture Startup Summit in Shanghai on January 7, 2026, Lee emphasized that the traditional model of South Korea providing capital and technology while China supplied land and labor is outdated, as China has now matched or exceeded South Korea in capital and technological capacity.

Lee proposed a "competitive yet cooperative" partnership between the two countries, encouraging competition where necessary and collaboration where beneficial to deepen economic ties. He highlighted that a more connected venture startup ecosystem between South Korea and China could generate significant growth opportunities.

Additionally, Lee pledged to support a business environment that encourages young entrepreneurs to take risks without fear of failure, advocating for government measures to share startup risks and view failure as a stepping stone to success. During his visit, he also attended a business forum in Beijing with top executives from both countries to enhance cooperation in sectors like artificial intelligence and cultural content.

Trade minister vows efforts to achieve US$700 bln in exports again in 2026

Yonhap | English | News | Jan. 9, 2026 | UndeterminedTrade Issues and Numbers

Trade Minister Yeo Han-koo pledged to maintain South Korea's annual exports above the US$700 billion mark for 2026, building on the record achievement of 2025. Last year, South Korea's exports reached an all-time high of $709.7 billion, driven by strong performances in semiconductors, automobiles, ships, and smaller sectors like agro-fisheries and cosmetics.

Yeo credited this success to renewed trust in the Korean market following President Lee Jae Myung’s administration and the bilateral trade agreement between Seoul and Washington. The government plans to diversify export items and markets to counteract protectionist policies from major economies, including the EU's heightened steel safeguards. Efforts will also focus on enhancing infrastructure and financial support for export firms.

中, 메타 마누스 인수건 심사…"수출 규정 위반 가능성"

China reviews Meta Manus acquisition case… possibility of export regulation violation

ZD Net Korea | Local Language | News | Jan. 9, 2026 | Regulation

Chinese authorities are reviewing Meta's recent $2 billion acquisition of the AI startup Manus, suspecting potential violations of export control regulations. The Ministry of Commerce is investigating whether the deal, which followed the relocation of Manus’ personnel and technology to Singapore, should have required an export license under Chinese law. The review is in its early stages with no formal investigation initiated yet, but a ruling requiring a license could allow Chinese government intervention.

This scrutiny aligns with China's previous use of export controls, notably in the TikTok forced sale case, and highlights concerns about Chinese startups moving overseas to evade domestic regulations. The phenomenon, termed "Singapore-washing," involves companies basing operations in Singapore to lessen geopolitical risks. Manus operates under the Singaporean entity Butterfly Effect, while related technology was developed by a Beijing-based sister company established in 2022.

The review coincides with broader geopolitical tensions and regulatory challenges affecting AI sectors in both the U.S. and China. Analysts note that the Manus acquisition highlights the emerging divergence of AI ecosystems dominated by the U.S. and China. The relocation to Singapore followed a U.S. venture capital investment and inquiries into U.S. restrictions on investments in Chinese AI, illustrating the complex international landscape surrounding AI technology development and control.

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