Try the Daily Briefing
Try the Daily Briefing for your country of choice for two weeks--free of charge and with no obligation.
Have a service or subscription question? We'd be happy to hear from you.
South Korea
Intelligence for Better Decision Making
Samsung Reports Record Revenue Amid Diverging Mobile Gains and Semiconductor Slowdown
May 1, 2025 | Indirect IndicatorSamsung Electronics reported its first-quarter 2025 results, delivering record revenue alongside mixed performances across its divisions and markets.
Samsung posted consolidated revenue of 79.14 trillion won in Q1 2025, a 10 percent increase year-on-year. Operating profit rose 1.2 percent to 6.68 trillion won, while net profit climbed 21.7 percent to 8.22 trillion won, driven by strong mobile sales.
**Turning to its Device eXperience division, Samsung achieved 51.7 trillion won in sales, up 28 percent from a year earlier, and boosted operating profit 14.6 percent to 4.7 trillion won.**
The mobile sector led with 37 trillion won in sales and 4.3 trillion won in operating profit thanks to the Galaxy S25 series. Sales of visual displays and home appliances rose 19.4 percent, though profitability in those units declined 40 percent.
**Shifting focus to semiconductors, the division recorded 25.1 trillion won in sales, down 17 percent year-on-year, and saw operating profit drop 42.1 percent to 1.1 trillion won.**
Weak demand for high-bandwidth memory products under US export controls drove the downturn despite partial recovery in DRAM and NAND pricing. The System LSI business achieved modest growth, while seasonal pressures persisted in the foundry segment.
**On the day of the earnings announcement, the Korea Composite Stock Price Index fell 0.6 percent.**
Samsung Electronics shares slid 0.45 percent and SK hynix shares fell 1.38 percent as the broader chip sector weighed on sentiment, even as financial and internet portal stocks posted gains.
**For the second quarter, Samsung expects continued uncertainty amid a challenging global trade environment.**
The company plans to roll out upgraded HBM3E memory products and unveil new flagship devices, including the Galaxy S25 Edge and next-generation foldable models. It will also work closely with the South Korean government to minimize geopolitical and trade risks.
Korea Launches National AI Computing Center and Accelerates GPU Procurement Drive
May 1, 2025 | Indirect IndicatorKorea is advancing its AI capabilities with the National AI Computing Center project and a major GPU procurement initiative.
**Applications for the National AI Computing Center will run from May 19 to May 30, attracting strong interest from telecommunications operators, cloud service providers, and local governments.**
Prospective participants are racing to form consortia and secure their positions before the deadline, with regions such as Chungnam province actively promoting local industry involvement. By the end of February, more than 100 applications had flooded in after the initial announcement. While local governments press for regional partnerships, some applicants express caution about major telecommunications firms taking the lead and about how consortium governance will be structured.
**The project will create a special purpose corporation (SPC) funded by roughly 400 billion won in public and private investment.**
The public sector will hold 51 percent of the shares, and private participants will hold 49 percent. Companies weighing participation warn that this shareholding split may limit private autonomy and constrain profitability. The government plans to review the May applications and name the final consortium by August.
**Under a newly approved supplementary budget, officials aim to secure 10,000 advanced graphics processing units (GPUs) by the end of 2025—about half the capacity domestic data centers could handle.**
Industry surveys show these centers could host over 20,000 GPUs, and leading players including Naver, Kakao, and three major telecommunications firms have indicated they could each install nearly 10,000 units. In response, the National Assembly pushed for higher procurement targets.
**During budget deliberations, the People Power Party proposed raising the GPU count to 15,000 units, and the Democratic Party of Korea called for up to 30,000 units.**
Despite these proposals, the government remains committed to 10,000 units this year. Officials at the Ministry of Science and ICT cite challenges securing sufficient quantities from Nvidia and completing installations within the calendar year, and they expect to distribute GPUs among multiple operators rather than concentrate them with a single company.
**Industry stakeholders warn that purchasing, installing, and operating thousands of GPUs could face delays due to the need for physical space and extensive power infrastructure upgrades.**
Experts caution that higher targets such as 30,000 units may prove difficult because high-demand GPU models are made to order, rarely held in stock, and subject to intense global competition, which has caused shipment delays in the past. Discussions are underway about using alternative chips from AMD if Nvidia supply falls short, though participants emphasize the need to evaluate performance and compatibility trade-offs. Cloud service providers also urge the government to include cost-compensation mechanisms for maintaining GPU-equipped data centers, arguing that financial support will be vital to offset operational risks and ensure robust private-sector participation.
Monitored Intelligence for South Korea - May 2, 2025
News
Media
329
Government
Releases
18
City/State
Releases
60
Embassy
Releases
0
Foreign
Service
Advisories
0
Service
Advisories
0
Academic/
Think
Tank
5
Think
Tank
5
Podcasts
0
Videos
0
Social
Media
0
Business
Releases
1
Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.
The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.
Risk Categories Reported on Today
Risk Category
Items Reported On
Crime
3
Cyber Attacks and Data Loss
8
North Korea
14
Extreme Weather Events
3
Privacy
2
Epidemics and Pandemics
1
Natural Disasters
2
Regulatory Enforcement Actions
3
Climate Change
1
Geopolitical Conflict and Disputes
8
Political Scandal or Corruption
6
Shifting Geopolitical Alliances
1
Corporate Corruption or Fraud
2
Regulation
2
Critical Infrastructure Failure
1
Protest, Demonstration, Dissent
1
Strikes and Work Stoppages
1
Supply Chain Issues
1
Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.
We categorize key intelligence into one of 30 different operations intelligence categories.
Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.
Operations Categories Reported on Today
Operations Category
Items Reported On
Bankruptcy-Insolvency
1
Economic Growth
2
Tech Development/Adoption
8
Operating Results
6
Mergers & Acquisitions
3
Bizdev-Partnering
4
Taxes
1
Trade Issues and Numbers
15
Asset Price Change
2
Real Estate
3
Employment
5
Politics and Elections
2
Budgets-Budgeting
3
Financial System Problems
1
Investor Sentiment
1
Supply Chain Issues
1
Energy Prices
2
Acting president urges watertight readiness posture against N. Korea-Russia military ties
Korea Herald | English | News | May 2, 2025 | North Korea
Acting President and Prime Minister Han Duck-soo emphasized the need for a strong national defense during a meeting with security ministers in Seoul. He called for a "watertight readiness posture" in light of the increasing military collaboration between North Korea and Russia, asserting that there should be "no compromise" on issues of national security.
Han pointed out that North Korea is enhancing its military capabilities and planning new provocations, posing a continual threat to South Korea, which also faces cyberattack risks. He urged ministers to maintain a vigilant defense posture to safeguard the lives and properties of citizens, highlighting the urgency of the situation.
Additionally, Han acknowledged public unease regarding the implications of US President Donald Trump's administration for South Korea's security. He stressed that the government must prioritize national interests when responding to the evolving global order and urged a calm and serious approach to national security matters.
노동시장 미스매치 현황과 정책적 제언
Current Status of Labor Market Mismatch and Policy Recommendations
Korea Institute for Industrial Economics and Trade | Local Language | AcademicThink | May 2, 2025 | UndeterminedEmployment
Min Soon-hong's research highlights the evolving labor market dynamics in South Korea, particularly in the wake of COVID-19. While the service industry faced significant employment challenges, the manufacturing sector demonstrated a quicker recovery. Manufacturing employment remained resilient compared to the service industry, only experiencing a minor decline in early 2020 before rebounding in the second half of the year.
The study reveals that employment shocks varied across manufacturing categories. Temporary workers and self-employed individuals with employees faced more substantial impacts, while permanent workers and self-employed without employees remained largely unaffected. Larger manufacturing companies with over 300 employees outperformed smaller firms in terms of employment recovery, showing increases beyond pre-COVID levels.
Employment trends further reveal diverse outcomes among industries. The pharmaceutical sector showed consistent growth both before and after the pandemic, whereas industries such as non-metallic minerals, primary metals, and printing have seen declines. In contrast, sectors like electronic components, computers, and others have experienced improvements post-COVID. The findings suggest a nuanced landscape in the manufacturing industry, with significant variability across different segments.
N. Korea tests new 5,000-ton destroyer amid suspicions of Russian tech support
Korea Herald | English | News | May 2, 2025 | North Korea
North Korea has successfully conducted weapons tests on its new 5,000-metric-ton multipurpose destroyer, the Choe Hyon-class vessel, as reported by state media. The tests took place over two days following the ship's launch ceremony, assessing its weapon systems and combat performance. North Korean leader Kim Jong-un oversaw the tests, which included the firing of various missiles and other weapons. Kim emphasized the need to enhance naval nuclear capabilities and adopt a stronger maritime defense posture.
Military experts suggest that the Choe Hyon-class destroyer is equipped with a Hwasan-class cruise missile system, which could potentially carry nuclear warheads. This development indicates North Korea's aim to establish a second-strike capability through sea-based platforms. South Korean analysts noted that the destroyer's technologies closely resemble those of Russian military systems, hinting at possible technological cooperation between North Korea and Russia. There are speculations that North Korea may have received advanced weapons technology from Russia in exchange for military support in the ongoing conflict in Ukraine.
In addition to the destroyer tests, North Korea has commenced preparations for constructing a new vehicle bridge over the Tumen River to connect with Russia. This follows a prior agreement during a summit between Kim Jong-un and Russian President Vladimir Putin. The new bridge, planned to be built downstream from an existing railway bridge, is expected to be completed by the end of 2026.
Contact us for a free trial of the Daily Briefing for your country of choice.
We currently cover:
South KoreaJapan
China
Taiwan
Vietnam
India
info@eruditerisk.com
The Daily Briefing is delivered Monday through Thursday via email.
Each day's reports include a combination of:
Takes
Takes are our deep dives into a topic of enduring interest or concern. Takes include copious references to all the media resources we gathered to build them.
Developments
Developments are key issues and incidents being heavily reported on in country. These are the centers of local thought gravity around which everything else revolves.
Risk Media
Summaries and analysis of the most important risk issues reported on in media, arranged by risk category. Learn about risk trends and issues while they are developing--before they blow up.
Ops Media
Summaries and analysis of the most important operational issues reported on in media, arranged by operations category. See what's changing in your market, and what's not.
Government Releases
Government press and data releases on key economic data, regulation, law, intiatives, incidents. Straight from the government's press to your eyes in less than a day.
Embassy and Business Association Releases
Statements and news releases from foreign embassies and business/industry associations, including chambers of commerce.
The Daily Briefing is comprehensive!
The Daily Briefing can run 50-100 pages each day!
Luckily, Erudite Risk tailors every report specifically to you.
Content Filtering
We try hard to ensure that every piece of information included in each day's reports will be of interest to our readers.
To fulfill our goal of comprehensively monitoring the intelligence landscape and also keeping reports readable, we build big reports--then deliver only the information that applies to you.
Each Daily Briefing is a bespoke report matched to your concerns. Tell us what you want in it, or we can match it to your professional needs. It's that easy.