South Korea

Intelligence for Better Decision Making

Emerging AI Integration Across Operating Systems, Industry Platforms and Enterprise Solutions
Nov. 6, 2025 | Technology & Innovation

The latest developments in AI infrastructure and platform initiatives demonstrate the growing integration of artificial intelligence across operating systems, industry events and enterprise-grade solutions.

**SUSE Linux Enterprise Server 16 embeds AI directly into its operating system, offering automated management and predictive operational functions backed by a 16-year support cycle.**
It introduces “Agentic AI,” which runs AI processes natively at the OS level, and implements the Model Context Protocol (MCP) for an open AI architecture that lets enterprises integrate any large language model without vendor lock-in. The release also adds enhanced operational management, including an “instant rollback” mechanism enabled by default in cloud images. Built on reproducible builds for source verification and meeting EAL4+ security standards, SLES 16 delivers predictable updates and a simple maintenance system to bridge technical gaps between Linux distributions, reduce long-term costs and ensure stability. SUSE plans to roll out a fully AI-integrated product portfolio starting November 4, 2025.

**The SK AI Summit 2025, held November 3–4 at COEX in Seoul, attracted roughly 35,000 participants—5,000 more than last year—and featured 78 organizations from eight countries, marking a 44% increase in participation.**
Rebranded from the SK Tech Summit in 2024 under the theme “AI Now & Next,” the event explored sovereign AI, agentic AI and manufacturing AI. In his keynote, Chairman Chey Tae-won urged “competition in efficiency,” emphasizing expanded memory semiconductor production, reinforced AI infrastructure and proactive AI utilization. High-profile speakers such as Amazon’s Andy Jassy and OpenAI’s Sam Altman acknowledged Korea’s AI prowess. Sessions examined AI applications in computing infrastructure, semiconductors, healthcare, retail and energy, while SK Group showcased new AI data centers, a next-generation 6G AI-RAN collaboration with NVIDIA and SK hynix’s memory semiconductor advances. SK Group plans to deepen cooperation with both global and domestic partners to strengthen the AI industry value chain and leverage the summit as a platform for sharing Korean AI capabilities.

**Pure Storage, Cisco and NVIDIA have unveiled the FlashStack Cisco Validated Design as a core element of the Cisco Secure AI Factory, delivering an integrated computing, storage, networking and software platform optimized for AI workloads.**
To help enterprises scale AI projects beyond fragmented data architectures and complex infrastructure operations, this solution supports a smooth transition from pilot to full production. Its data-centric architecture uses Pure Storage’s FlashBlade//S for high-performance structured and unstructured data management, combined with Portworx to ensure portable, secure data handling in Kubernetes environments. The platform’s hardware and software stack includes Cisco UCS C845a servers, NVIDIA AI Enterprise software and Cisco Nexus 9000 Series networking, which offers low-latency fabric, congestion-aware routing, telemetry and load balancing. Building on a FlashStack customer base of over 5,000, the solution addresses generative AI, semantic search, video analytics and code generation in regulated industries, reducing infrastructure complexity and risk so organizations can focus on model innovation rather than data readiness.
South Korea Unveils Ambitious 2026 AI-Focused Budget to Drive Technological Leadership
Nov. 6, 2025 | Technology & Innovation

South Korea’s 2026 government budget sets the stage for the nation’s ambitions in artificial intelligence and technological leadership.

**The total 2026 budget reaches 728 trillion won, an 8.1 percent increase from 2025.**
President Lee Jae-myung described this as Korea’s first AI-era budget, allocating 10.1 trillion won—more than triple the previous year’s 3.3 trillion won—to propel the country into the top three global AI powers.

**Within the 10.1 trillion won AI allocation, 2.6 trillion won will drive AI adoption across industry, daily life, and public services, while 7.5 trillion won will fund talent cultivation and infrastructure.**
Over the next five years, the government will dedicate 6 trillion won to transform manufacturing into a “technology-innovation-type industrial nation,” integrating AI with Korea’s strengths in robotics, automobiles, and semiconductors. It plans to train 11,000 high-level AI professionals and acquire 15,000 high-performance GPUs next year, bringing the government’s GPU inventory to 35,000. Simultaneously, public and private sectors aim to procure up to 260,000 GPUs from NVIDIA.

**Beyond AI-specific funding, the government boosts strategic R&D investment to a record-high 35.3 trillion won in 2026, up 19.3 percent, covering AI, content, defense, and other priority areas.**
It will also establish a 150 trillion won national growth fund over five years to spur private-sector investment and foster a convergence growth model that combines K-content with cutting-edge technology.

**The defense budget rises by 8.2 percent to 66.3 trillion won, reflecting plans to modernize weapons systems with AI capabilities and achieve greater self-reliance.**
President Lee noted that this defense spending equals 1.4 times North Korea’s annual GDP and cements Korea’s position as the world’s fifth-strongest military power.

**President Lee framed the AI allocation as essential to national survival amid rapid global economic and technological shifts.**
He called for an “AI superhighway” to drive growth and integrate AI across manufacturing and public services—from welfare and employment to taxation and drug review—laying the foundation for South Korea’s future competitiveness and welfare.

Monitored Intelligence for South Korea - Nov. 6, 2025


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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.

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We categorize key intelligence into one of 30 different operations intelligence categories.

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벼랑끝 철근부터 손질 나선다…정부, 철강산업 구조조정 ‘차등 처방’

Starting repairs from steel bars on the brink… Government applies differentiated measures for steel industry restructuring

Maekyung | Local Language | News | Nov. 6, 2025 | Regulation

The South Korean government has introduced differentiated measures to address structural issues in the steel industry, focusing on companies’ voluntary business restructuring and promoting high value-added steel products. These measures are tailored by product type, recognizing varying supply-demand conditions and industry characteristics. Support is directed especially at companies with plans to reduce facilities, like Hyundai Steel and Dongkuk Steel, including financial aid and employment maintenance incentives. Regions affected by industrial crises may receive additional designation and support.

For products with low foreign import penetration, such as rebar, the government aims to encourage voluntary restructuring by companies, taking cues from the petrochemical sector. In contrast, for steel products with high import shares like hot-rolled, cold-rolled, and galvanized steel, the government plans to prioritize trade measures, including crackdowns on origin labeling violations, anti-dumping investigations, and mandatory quality inspection certificates to curb unfair imports. Financial support is being expanded through programs like the “export supply chain strengthening guarantee,” supplying 570 billion won, with contributions from POSCO, IBK Industrial Bank, and Korea Trade Insurance Corporation.

To ease raw material costs, tariff quota eligibility will be broadened next year to cover more steel raw and auxiliary materials. Additionally, a 200 billion won R&D support fund will concentrate on high value-added products such as special carbon steel and electrical steel sheets. Despite these efforts, the steel industry faces ongoing challenges with declining profitability, weak demand, and increasing excess capacity ratios. The operating rates of major steelmakers have decreased, and the structural overcapacity remains significant, indicating pressure for more rapid restructuring.

Legislative support in the form of the “K-Steel Act,” designed to provide tax incentives and other benefits to the industry, remains stalled due to partisan disagreements despite being adopted as policy by major political parties. The delay in passing this bill risks postponing vital financial support measures in the next government budget cycle, amplifying industry anxieties amid persistent market and structural headwinds.

칼 뽑아든 미국…중국·러시아 위협 막을 우주 신무기 띄운다

The United States Draws Its Sword…Launching New Space Weapons to Counter Threats from China and Russia

Hankyung | Local Language | News | Nov. 6, 2025 | Geopolitical Conflict and Disputes

The United States is activating an electronic warfare weapons system designed to target the satellite surveillance networks of China and Russia. This move signals a recognition of outer space as a strategic battlefield and aims to establish information dominance by disrupting adversaries' intelligence, surveillance, and reconnaissance (ISR) satellites.

The U.S. Space Force is set to deploy two new weapons called "Meadowlands" and "Remote Modular Terminal." Meadowlands, developed by L3Harris, is in the final stages of training and tactical development and is expected to be operational within the current fiscal year. The Remote Modular Terminal, created by Northstrat and CACI International, is already being deployed overseas and is in a limited operational capability phase, meaning it can be used in real-world missions. The U.S. plans to purchase 32 Meadowlands units and 24 Remote Modular Terminals.

Additionally, the U.S. Space Force is establishing a Space Electromagnetic Tactical Operations Center to coordinate disruption operations. This center will utilize the "Bounty Hunter" surveillance system to detect electromagnetic interference attacks and track adversary spacecraft. The initiative responds to China's fleet of about 1,200 satellites, including 510 ISR satellites capable of tracking U.S. military movements, and concerns about Russia's development of nuclear weapons with high-altitude EMP capabilities that could disable satellites and communication networks.

Once the new weapons are deployed, the U.S. will have three space response systems, including the existing Counter Communications System jammers, enhancing its ability to counter threats from China and Russia in space.

Quantum industry alliance sets sail to facilitate growth of cutting-edge technology

Yonhap | English | News | Nov. 6, 2025 | UndeterminedTech Development/Adoption

South Korea has formed a quantum industry alliance consisting of 34 major companies, including Samsung Electronics, Hyundai Motor, Hanwha Ocean, Samsung Biologics, KB Kookmin Bank, and Shinhan Bank. The initiative aims to accelerate growth in the quantum technology sector, which is expected to drive a technological revolution.

The alliance will focus on identifying practical applications across various industries, refining standards and regulations, and promoting the sector’s global expansion. The Ministry of Trade, Industry and Resources also announced plans to localize key quantum technology components, such as superconducting quantum processing unit packaging and cryogenic cooling systems.

Additionally, the government will launch a project to develop quantum software designed to address industrial challenges. Vice Industry Minister Moon Shin-hak emphasized the commitment to supporting domestic quantum companies to ensure they capitalize on the timely industrialization of the technology and integrate into the global value chain.

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