South Korea

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South Korea Advances National AI Strategy Amid Industry Push and Civil Society Concerns
Jan. 2, 2026 | Technology & Innovation

South Korea’s national AI initiatives are reshaping industry standards, regulatory approaches and public engagement.

**People’s Solidarity for Participatory Democracy (PSPD) criticized South Korea’s draft National AI Action Plan for prioritizing AI industry promotion over fundamental rights like human dignity and self-determination of personal information.**
PSPD noted that the plan exempts public consent requirements and relaxes regulations for industrial convenience, echoing past policies that elevated economic growth above citizens’ rights. It identified six high-risk areas—information rights, health care and welfare, economy, defense, climate and society—and warned that equating state and corporate interests with individual rights undermines constitutionally guaranteed protections. PSPD also highlighted the plan’s insufficient 20-day public consultation period and called for extended, meaningful engagement with civil society and directly affected individuals.

**The AI Framework Act, set to take effect in January 2026, mirrors this industry-first approach by favoring minimal, flexible regulation to spur AI innovation without banning unethical practices or addressing domains where AI could threaten human safety and rights.**
Subordinate statutes under the act continue to prioritize industrial development over robust safeguards and disregard repeated civil society appeals for stronger protections. Analysts argue that without substantial amendments to both the Framework Act and the National AI Action Plan, South Korea risks perpetuating a regulatory environment that fails to constrain corporate AI deployments and leaves individuals vulnerable to algorithmic harms.

**In his 2026 New Year’s address, Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon cast AI as the linchpin of national competitiveness.**
He outlined plans to build an “AI basic society” benefitting all citizens, secure an independent world-class AI model and accelerate AI transformation across sectors including manufacturing, shipbuilding and logistics. Bae emphasized integrating semiconductors and AI into a “full-stack K-AI” ecosystem for global market entry and pledged an institutional framework to prioritize corporate security and wage an “all-out war against hacking.”

**Ministers collectively declared 2026 a pivotal year for innovation, naming AI among five priority sectors alongside bio, cultural content, defense and energy.**
Prime Minister Kim Min-seok stressed industrial structure innovation and fair benefit distribution, while Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul framed AI transformation as key to securing physical AI leadership and regional hub status. Trade, Industry and Energy Minister Kim Jeong-gwan aimed to link regional development with AI-enhanced trade through a manufacturing AI (M.AX) strategy, and Climate, Energy and Environment Minister Kim Seong-hwan outlined regulatory reforms to support a renewable-nuclear energy mix. Financial Services Commission Chairman Lee Eok-won introduced a finance strategy to underpin AI-driven economic growth via inclusive, innovation-focused financial support.

**On the industry front, major technology firms are scaling up infrastructure and services to align with these ambitions.**
Naver has begun phase 2 construction at its Gak Sejong data center—phase 3 is slated for completion by 2029—and plans to launch AI agent services such as a shopping assistant and conversational search (AI Tab) next year before integrating them into an all-in-one agent, Agent N, by 2027. Kakao is acquiring 2,424 NVIDIA B200 accelerators for its Ansan data center, dedicating 16% of government-allocated GPUs to generative AI model training, and advancing its open-source Kanana2 language model toward a mixture-of-experts architecture. Kakao Tools, the company’s AI agent linked to ChatGPT, will integrate with platforms including maps, gifting, music streaming, finance and mobility, and it plans a second Namyangju data center by 2029.

**At CES 2026, LG Electronics showcased the humanoid home robot “LG Cloyd,” featuring advanced five-finger dexterity for household tasks, and reorganized its robotics efforts under the Home Appliance Business Division to accelerate commercialization.**
Samsung Electronics emphasized a hyper-connected AI ecosystem via its SmartThings platform, demonstrating seamless integration across appliances such as the Gemini AI-powered Bespoke refrigerator without deploying standalone robotic hubs. This divergence reflects a broader market shift toward comprehensive ecosystems and data-centric optimization in the AI home sector.

**SK Group chairman Choi Tae-won told employees that the company’s previous investments in memory, ICT, energy solutions and batteries have set the stage for the emerging AI era.**
SK plans to reinforce its AI semiconductor capabilities and deliver “AI integrated solutions” by harnessing competencies across its energy, telecommunications, construction and bio affiliates. Choi described AI-driven innovation as the foundation for future growth and pledged support for creative challenges and development throughout 2026.

**HD Hyundai Heavy Industries launched its Future of Shipyard (FOS) initiative to digitize and AI-enable shipbuilding in three stages.**
The first “visible shipyard” phase now offers real-time process and equipment monitoring; the second stage links process data with AI for predictive decision-making; and the third phase, targeting 2030, aims to establish an autonomous shipyard with a 30% productivity increase and a 30% reduction in construction time. AI applications already optimize steel plate cutting, automate design calculations and speed owner requirement processing, while pilots of “physical AI” robotics for welding and assembly and digital twin simulations are underway. Simultaneously, HD Hyundai pursues a diversified decarbonization strategy with ammonia- and methanol-powered vessels, electric propulsion demonstrations and preparatory work on hydrogen solutions and small modular reactors.

**A Zoom-commissioned report found that 92% of South Korean AI-native companies regard AI as a critical competitive advantage, the highest rate in the Asia-Pacific.**
These firms anticipate that federated AI architectures combining multiple models will drive greater accuracy and cost efficiency in 2026. They expect agentic AI to automate routine tasks, shifting workforce focus toward creative strategy and human interaction. In marketing, widespread AI-generated content will heighten the importance of brand authenticity, ethical decision-making and balancing privacy with personalization. The report also predicts a shift from AI adoption to the establishment of effective AI governance frameworks under the upcoming AI Basic Law, effective January 2026, which aims to codify transparent, responsible AI system management.
Samsung DRAM Technology Leak Triggers Legal Action and Exposes Global Industry Risks
Jan. 2, 2026 | Technology & Innovation

Unauthorized transfer of DRAM process technology has prompted legal action and exposed critical vulnerabilities in the global semiconductor industry.

**The Seoul Central District Prosecutors’ Office indicted 10 individuals—five former Samsung Electronics employees and five associates of ChangXin Memory Technologies (CXMT)—for violating trade secret and unfair competition laws.**
Investigators allege that beginning in September 2016, a former Samsung department head and other ex-employees obtained Samsung’s classified 18-nanometer DRAM process technology through a contact now at CXMT. They copied hundreds of process steps by hand, established shell companies, relocated offices frequently and used coded language to evade detection.

**From 2018 to early 2023, CXMT’s second development team, led by another former Samsung executive, refined the stolen DRAM process to suit Chinese manufacturing conditions.**
In 2020, CXMT technicians also acquired DRAM process technology from SK hynix via subcontractor channels. Leveraging these illicit acquisitions, CXMT became the first Chinese—and fourth global—company to mass-produce 10-nanometer-class DRAM in 2023. Samsung Electronics attributes a revenue decline of about 5 trillion won in 2024 directly to this technology leak.

**Semiconductors account for 20.8 percent of South Korea’s exports, and prosecutors estimate the national economic damage at tens of trillions of won.**
They opened the investigation in January 2024 after related probes uncovered multiple technology leaks through both domestic and overseas channels, confirming threats to the nation’s semiconductor sector and technological security.

**Founded in 2016 with support from government entities and design firms, CXMT recruited its initial development team—including the former Samsung department head now indicted—and received proprietary DRAM process steps through this network.**
The current legal actions aim to address the breach of state-designated core technology and prevent further unauthorized dissemination of critical semiconductor know-how.

Monitored Intelligence for South Korea - Jan. 2, 2026


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Tracking North Korea’s Ninth Party Congress Preparations

38 North | English | AcademicThink | Jan. 2, 2026 | North Korea

North Korea’s recent year-end Workers’ Party of Korea (WPK) plenary meeting provided limited updates on preparations for the Ninth Party Congress, indicating that planning remains in early stages with several pending issues unresolved. The meeting emphasized the importance of completing major projects and setting realistic five-year development plans before the Congress convenes. A preparatory committee is yet to be fully established, with tasks including drafting amendments to the Party rules and arranging delegate elections still underway.

The Ninth Party Congress, as the highest leadership organ of the Party convened every five years, is expected to review accomplishments since the Eighth Congress in 2021 and lay out policy directions for the next five years. Although the Party decided to hold the Congress in June 2025, no date has been set, and preparations appear slower compared to the lead-up to the Eighth Congress. Historical precedent suggests that organizing the Congress typically requires several weeks of intensive preparation from the formation of the preparatory committee to delegate selection and final announcements.

North Korea’s leadership, under Kim Jong Un, has normalized regular Party meetings and Congresses since 2016, using them as key venues for leadership consolidation and strategic direction. The timeline for the Ninth Congress will depend on how quickly outstanding tasks are resolved, and future updates, including possible Politburo meetings, are expected to provide more clarity on the timing and content of the Congress.

Succession at the Crossroads: Scenarios for North Korea’s Future

38 North | English | AcademicThink | Jan. 2, 2026 | North Korea

The increasing visibility of Kim Jong Un’s daughter, Kim Ju Ae, amid uncertainties about his health, has sparked speculation about North Korea’s future leadership. While her public role is unprecedented and may hint at succession plans, historical patterns suggest caution, as previous transitions involved complex elite management, propaganda, and military demonstrations to establish legitimacy. A female successor would face notable challenges in DPRK’s patriarchal society, whereas a male heir might receive broader acceptance but still requires political and military credentials. The timing and nature of the succession process could vary, resembling either a lengthy apprenticeship like Kim Jong Il’s or a rapid ascendancy as with Kim Jong Un.

Past successions in North Korea showed distinct approaches shaped by differing domestic and international contexts. Kim Jong Il’s rise (1970s-1994) occurred during a relatively stable era that allowed gradual consolidation of power through ideological campaigns linking his legitimacy to his father Kim Il Sung. In contrast, Kim Jong Un’s succession (2008-2011) happened amid international isolation and economic challenges, with his father accelerating the transfer of power due to deteriorating health, elevating a new generation of loyal elites while sidelining old guard figures like Jang Song-thaek.

Military leadership credentials have been critical in legitimizing North Korean rulers. Kim Jong Il bypassed direct military experience by leveraging propaganda tied to his father’s legacy and instituted “military-first” policies to reinforce his regime. Kim Jong Un lacked traditional military credentials and instead “invented” military authority early on through appointments and demonstrations of force, such as the 2010 Yeonpyeong artillery strike and subsequent missile tests, to consolidate control and signal regime strength.

Current internal dynamics reveal a potential rivalry between Kim Ju Ae and Kim Jong Un’s sister, Kim Yo Jong, who holds significant party influence and is considered a viable immediate successor if Kim Jong Un dies suddenly. However, ideological norms favoring male heirs and generational transfer theories elevate Kim Ju Ae’s candidacy over Kim Yo Jong’s long-term prospects. The existence of a possible son adds complexity, as patriarchal norms could make a male successor more acceptable. Kim Jong Un himself faces the delicate task of empowering a successor without undermining his own authority, a balancing act influenced by lessons from past transitions and the risk of accelerated power shifts.

Signs of an emerging succession process may include intensified propaganda showcasing the successor’s military and political roles, reorganization of elites loyal to the heir, and policy initiatives aimed at consolidating power and addressing socio-economic and security challenges. The successor will likely continue “military-first” policies, using military demonstrations both as legitimacy tools and means to suppress dissent within the armed forces. Resistance from within the military could lead to further purges to solidify control.

Several scenarios could unfold: in the short term, a politically established figure like Kim Yo Jong might take over in the event of Kim Jong Un’s sudden incapacitation, while younger heirs remain unprepared. If a male heir emerges, patriarchal societal norms suggest the female successor’s prospects diminish. Even though the number of women in leadership roles has increased, significant political power remains unlikely for female delegates under existing structures, with conservative party factions poised to influence succession outcomes.

Understanding the historical patterns and tactical dynamics of past North Korean successions is crucial for anticipating future developments. While no succession process is predetermined, recognizing indicators such as elite reshuffling, propaganda shifts, and military activity can help policymakers prepare for potential transitions. A nuanced grasp of these factors will support more proactive and informed international responses, mitigating risks and seizing opportunities during North Korea’s eventual leadership change.

초고령사회 일본의 외국인력 도입 동향과 정책적 시사점

Trends in the Introduction of Foreign Workers in Japan as a Super-Aged Society and Policy Implications

Korea Institute for Industrial Economics and Trade | Local Language | AcademicThink | Jan. 2, 2026 | UndeterminedEmployment

The article examines employment trends in Japan's manufacturing sector in the context of a super-aged society and the COVID-19 pandemic. It highlights that manufacturing employment experienced a relatively rapid recovery after a slight decline in early 2020, contrasting with more severe shocks seen in service sectors like air travel, food, and accommodation. Compared to major OECD countries, Japan's manufacturing employment faced smaller disruptions.

Employment impacts varied within manufacturing, with temporary and daily workers and self-employed individuals with employees experiencing larger shocks. In contrast, regular employees and self-employed individuals without employees saw little impact. Larger firms with 300 or more employees rebounded quickly and surpassed pre-pandemic employment levels, while smaller firms had slower recoveries.

Analyzing industry-specific trends, pharmaceuticals showed continuous growth before and after the pandemic’s onset. Other sectors such as electronic components, computers, transport equipment, and furniture also improved. However, several industries including non-metallic minerals, primary metals, metalworking, and printing experienced notable employment declines after COVID-19.

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