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. 8, 2026


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'광우병 파동' 18년 만에…美 소고기 관세 '제로 시대' 열렸다 [이광식의 한입물가]

18 Years After the Mad Cow Disease Crisis… The Era of Zero Tariffs on U.S. Beef Has Begun [Lee Kwang-sik’s One Bite Price]

Hankyung | Local Language | News | Jan. 8, 2026 | UndeterminedTrade Issues and Numbers

Eighteen years after the 2008 mad cow disease crisis, tariffs on U.S. beef have been completely abolished as of January 1, 2026. This follows a long process of gradual tariff reductions since the Korea-U.S. Free Trade Agreement (FTA) took effect in March 2012, where tariffs dropped annually from 37.3% to zero. U.S. beef, once the focus of widespread public protests and fears, now accounts for about 45.2% of Korea’s total imported beef market, helping to alleviate the increasing grocery price burden caused by a strong exchange rate.

Beef prices have been rising significantly; imported beef prices increased by 8% in December 2025, with further increases possible due to exchange rate volatility and reduced U.S. beef production. The won-dollar exchange rate surpassed 1,470 won in December 2025, reaching a peak not seen since 1997. Additionally, U.S. cattle slaughter numbers and beef production declined sharply in 2025, contributing to supply constraints. Officials anticipate it will take about two years for U.S. beef supply to stabilize.

Alongside beef, tariffs on 45 U.S. agricultural and livestock products have been abolished this year, including cheese, mandarins, root vegetables for feed, walnuts, peanuts, peppers, garlic, onions, green tea, and ginger. Some products are still subject to agricultural safeguard (ASG) measures until 2030, which permit temporary tariff re-imposition if import volumes surge unexpectedly. Australian beef tariffs remain in place but are scheduled for removal in 2028.

S. Korea reports new bird flu case in central region

Yonhap | English | News | Jan. 8, 2026 | Epidemics and Pandemics

South Korea has confirmed a new case of highly pathogenic avian influenza at a quail farm in Okcheon, North Chungcheong Province. This brings the total number of bird flu cases reported this season to 33. The affected farm raises approximately 500,000 birds and is located about 160 kilometers south of Seoul.

In response, South Korean authorities have issued a 24-hour standstill order for all chicken and quail farms, related facilities, and vehicles in North Chungcheong Province and surrounding areas to contain the outbreak. This incident marks the first case of highly pathogenic avian influenza in Okcheon since December 2016.

AI 기본법 시행 임박…“현장 경험 반영한 제도 설계 필요해”

AI Basic Act Implementation Imminent… Need for System Design Reflecting Field Experience

ET News | Local Language | News | Jan. 8, 2026 | Regulation

With the enforcement of the Artificial Intelligence (AI) Basic Act set for January 22, 2026, stakeholders from public, private, and academic sectors convened to review regulations on transparency and accountability. There was broad agreement on the need to strengthen social responsibility as AI technology spreads, alongside a call to clarify standards to ensure predictable system operation in practical settings.

On January 6, a roundtable organized by Democratic Party member Hwang Jeong-a and AI policy platform company Codit focused on rationalizing and improving these regulations. Hwang emphasized South Korea’s unique position as the first country to implement an AI Basic Act and highlighted the importance of integrating field experiences from technology development and service operation into policymaking. He also called for balanced discussions around standards for high-impact AI and generative AI labeling obligations.

Industry representatives stressed the importance of detailed enforcement decrees and guidelines for successful implementation. Lim Jeong-wook, co-CEO of Startup Alliance, noted ongoing uncertainties about the regulatory scope and standards. While recognizing the significance of the government’s regulatory deferment, he emphasized using this period to test and improve the system, also urging alignment with international trends like those in the EU.

Choi Seong-jin, of the Startup Growth Research Institute, highlighted potential misalignment between the Act’s transparency and accountability requirements and technological realities, particularly regarding labeling generative AI outputs. He warned that broad application of obligations could create confusion and called for more detailed criteria for regulating high-impact AI. Song Hae-young, director at Codit’s Global Policy Empirical Research Center, stated that establishing AI transparency and accountability standards requires a deep understanding of both technology development and business environments, underscoring the collaborative nature of standard-setting to build trust in AI deployment.

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