South Korea

Intelligence for Better Decision Making

South Korea’s AI Foundation Model Initiative Advances Amid Recognition, Controversy and Policy Reform
Jan. 5, 2026 | Technology & Innovation

South Korea’s effort to establish independent AI foundation models now faces recognition, controversy and policy reforms.

**The Independent AI Foundation Model Project achieved its first major milestone when all five domestic entrants—Naver, SK Telecom, NC AI, LG AI Research and Upstage—landed on Epoch AI’s “Notable AI Models” list.**
Their inclusion raised Korea’s representation from three entries last year, all from LG AI Research, to eight, reflecting rapid national progress in AI capabilities.

**Project teams selected in August 2025 spent four months developing the five models—HyperCLOVA X Seed 32B Sync (Naver), A.X K1 (SK Telecom), VAETKI (NC AI), K-EXAONE (LG AI Research) and Solara Open 100B (Upstage)—before releasing them as open-source packages on Hugging Face at the end of 2025 to foster ecosystem engagement.**
As of January 2, 2026, Naver’s HyperCLOVA X 32B leads downloads with over 15,000.

**Allegations surfaced that Upstage’s Solara Open 100B borrowed from Zhipu AI’s GLM-4.5-Air, but Upstage rebutted this during a public technical verification session, arguing that shared architectural elements in open-source frameworks do not equate to unauthorized derivation.**
Saionic AI’s CEO Go Seok-hyun acknowledged methodological limitations in his claim, apologized for the confusion and called for clear academic and technical standards to define sovereign, independent AI.

**In response, the Ministry of Science and ICT will overhaul its AI project evaluations to emphasize development traceability alongside performance.**
Teams must submit final models and intermediate training checkpoints so that the Korea Testing Laboratory of Information and Communication Technology (TTA) and an expert committee can track development histories and detect any externally sourced weights. Evaluations begin in early January 2026 with one team eliminated by mid-month, and they will recur semi-annually through 2027 until two finalists emerge.

**Industry experts view the controversy and revised evaluation process as an opportunity to establish verification standards for model independence, such as permissible use of open-source architectures, thresholds for structural similarity and guidelines for component reuse like tokenizers.**
By shifting accountability toward development history rather than solely assessing end-product performance, the government’s approach reflects growing maturity in South Korea’s AI ecosystem.

**Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon pointed to roughly 90 onsite experts and journalists and 2,000 online participants at the public verification event as proof of the ecosystem’s transparency and self-correcting capacity.**
He stressed the need for ongoing public technical debates and announced that evaluations for the five elite teams will run from early January to January 15. Bae affirmed the government’s commitment to refining definitions and verification protocols for independent AI foundation models as a fair supporter of the sector.
President Lee’s State Visit to China Begins Amid Push for Enhanced Security, Economic, and Cultural Ties
Jan. 5, 2026 | Geopolitics & Defense

President Lee Jae-Myung travels to Beijing for a four-day state visit aimed at strengthening security, economic, and cultural ties between South Korea and China.

**President Lee departed for Beijing on January 4, 2026, marking the first visit by a South Korean president to China since 2019 and his first trip to China after assuming office in June 2025.**
Invited by President Xi Jinping, Lee will attend a bilateral summit in Beijing on January 5, where Xi will host an official welcoming ceremony, hold discussion talks, sign memoranda of understanding and host a state banquet. The two leaders last met at the APEC summit in Gyeongju in November 2025.

**Lee will make denuclearization and the security of the Korean Peninsula central to his discussions, urging China to play a constructive role in advancing denuclearization and improving inter-Korean relations.**
National Security Adviser Wi Sung-lac has pointed to Beijing’s capacity to influence North Korean behavior and contribute to regional peace and stability.

**Economic cooperation forms another pillar of Lee’s agenda.**
He will lead a large Korean business delegation to the Korea-China Economic Forum in Beijing, seeking expanded collaboration in artificial intelligence, green energy, supply-chain resilience, tourism, medical care, content industries and infrastructure. The two sides plan to sign more than ten memoranda of understanding and work toward a more balanced, horizontal economic partnership.

**Cultural exchanges and regional tensions will also feature prominently.**
Seoul will press for relief from China’s informal restrictions on South Korean content imposed after the deployment of a US missile defense system in 2016 and 2017. In a recent interview, Lee reaffirmed South Korea’s commitment to the One-China principle amid heightened tensions following China’s military exercises near Taiwan. The visit will also address maritime disputes caused by China’s construction of steel structures in the overlapping Yellow Sea provisional measures zone, with working-level talks already in progress.

**On January 6, Lee will meet Premier Li Qiang and Zhao Leji, chairman of the National People’s Congress Standing Committee.**
He will then travel to Shanghai to honor the 100th anniversary of the Provisional Government of the Republic of Korea and commemorate independence leader Kim Gu’s 150th birth anniversary. In Shanghai, Lee will attend the Korea-China Venture Startup Summit with entrepreneurs from both countries and meet local officials to discuss subnational exchanges.

**The Blue House expects this visit to rebuild political trust, restore the Korea-China strategic cooperative partnership and establish new cooperation models in supply chains, cultural content and peace initiatives on the Korean Peninsula.**

Monitored Intelligence for South Korea - Jan. 5, 2026


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줄줄이 고개 숙였던 이통사 수장들 ‘변심’…정보보안 불감증서 전면전으로

Heads of Telecom Companies Who Repeatedly Bowed Their Heads ‘Change of Heart’… From Complacency in Information Security to Full-Scale Confrontation

Maekyung | Local Language | News | Jan. 5, 2026 | Cyber Attacks and Data Loss

The heads of South Korea's major mobile carriers have shifted their management priorities from primarily focusing on AI transformation and new business ventures to emphasizing the enhancement of information security and restoration of user trust. This shift follows a significant cyber breach that affected the telecommunications industry last year.

Jeong Jae-heon, President of SK Telecom, highlighted the importance of solidifying the core mobile network operator business while still pursuing AI innovation as a future growth area. He emphasized placing the customer at the center of operations and reinforcing fundamental business aspects before advancing further in AI-driven opportunities.

Kim Young-seop, President of KT, ranked strengthening information security as the top priority ahead of his departure. While maintaining KT's goal to evolve into an AI and ICT company, he stressed that robust security measures are essential. Kim called for a cultural change in awareness to defend against increasingly sophisticated intrusion attempts, urging all employees to contribute to rebuilding customer trust.

Hong Beom-sik, President of LG Uplus, framed the year around the concept of “TRUST,” viewing it as a foundation for customer promises, transparency, teamwork, and competitiveness. He underscored the need for honesty and collaboration, as well as improvements across employee relations, network operations, security, and service quality to accelerate success and build a competitive edge.

"디지털트윈, AI시대 ‘NW 시뮬레이션 고도화’ 날개”

Digital Twin and AI Era 'Enhancing Network Simulation' Wings

ZD Net Korea | Local Language | News | Jan. 5, 2026 | UndeterminedTech Development/Adoption

Digital twins combined with AI technology are set to significantly enhance network simulation capabilities by creating virtual replicas of infrastructure that realistically reflect data flow logic. This advancement allows network construction simulations and fault predictions to be conducted in a flexible, virtual environment rather than the real world, increasing operational efficiency and reducing risk.

AI transforms digital twins from static models into dynamic, learning systems that constantly update with new data and can simulate a wide range of future scenarios. This enables telecom operators to evaluate thousands of scenarios, optimize backbone traffic routes, verify antenna placements, and allocate frequency resources efficiently, all of which reduce costs and improve network design accuracy without physical trial and error.

However, challenges remain, particularly ensuring the realism of AI-generated scenarios and maintaining high data quality to avoid confidently stated errors. Implementation also requires substantial initial investments, coordinated data collection, robust modeling platforms, and infrastructure. Additionally, security concerns and the need for organizational cultural readiness to trust AI-generated insights pose further hurdles in adopting AI-enhanced digital twin network operations.

North Korea launches ballistic missile as President Lee departs for China

Joongang Ilbo | English | News | Jan. 5, 2026 | North Korea

North Korea fired a ballistic missile into the East Sea on Sunday morning, marking its first ballistic missile launch of 2026 and the first since a short-range missile was fired on November 7, 2025. The launch was confirmed by South Korea’s Joint Chiefs of Staff (JCS).

The missile launch coincided with South Korean President Lee Jae Myung's departure for a four-day state visit to China, invited by Chinese President Xi Jinping. The upcoming Seoul-Beijing summit is expected to address North Korea's denuclearization.

The launch occurred shortly after U.S. President Donald Trump announced the military ousting of Venezuelan President Nicolas Maduro on Saturday.

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