South Korea

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South Korea Unveils National Strategy to Lead Global AI Semiconductor Race
Dec. 11, 2025 | Technology & Innovation

South Korea is charting an ambitious path to solidify its leadership in semiconductor technology and policy amid the global AI race.

**On December 10, 2025, President Lee Jae-myung convened a high-level briefing at the Yongsan Presidential Office in Seoul under the theme “K-Semiconductor Vision and Development Strategy in the AI Era.” The briefing brought together key government figures and roughly 40 leaders from industry, academia and research institutions, including representatives from Samsung Electronics and SK Hynix.**
It stressed the dual role of the semiconductor sector as an engine of economic growth and a pillar of national security as global rivalry in AI technologies intensifies.

**The government set strategic objectives to secure South Korea’s place among the world’s top two in both memory and foundry by preserving an “ultra-gap” technological edge.**
It aims to increase domestic fabless semiconductor revenue tenfold and achieve technology and production sovereignty through the development and commercialization of next-generation memory solutions and neural processing units. The plan also calls for strengthening system semiconductor capabilities—especially on-device AI chips—and for achieving self-reliance in defense-grade semiconductors.

**To support these goals, the strategy launches a Global No 1 Development Project to reinforce supply chains for materials, parts and equipment.**
It calls for opening semiconductor-focused graduate schools to build a larger skilled workforce and for creating a Southern Region Innovation Belt to expand the nation’s semiconductor ecosystem. During the briefing, participants discussed changes in the AI-driven industry, plans to increase production capacity and the need to cultivate a robust AI semiconductor technology and ecosystem.

**On December 11, President Lee will meet with business executives from Samsung Electronics and SK Hynix, government officials and industry experts to refine strategies for advancing the semiconductor sector, with a particular focus on AI chip development.**
The session aims to address rising global competition for AI technology leadership through a coordinated national strategy.

**Industry Minister Kim Jung-kwan will present an integrated government roadmap that emphasizes strengthening manufacturing capabilities in memory and foundry, expanding the nation’s role in chip design and accelerating next-generation semiconductors tailored to AI model requirements.**
The presidential office framed the global AI contest as a semiconductor-centered technology battle, prompting President Lee to mobilize national resources directly to bolster the industry.
US Approves Nvidia H200 AI Chip Exports to China in Strategic Shift of Semiconductor Policy
Dec. 11, 2025 | Geopolitics & Defense

The United States has granted permission for the export of Nvidia’s H200 AI chip to China, ushering in a new phase of semiconductor trade dynamics.

**The United States approved the export of Nvidia’s H200 AI chip to China, partially relaxing the 2022 restrictions.**
Former President Donald Trump announced the deal on December 8, 2025, allowing Nvidia, AMD, Intel and other American firms to sell the H200 under conditions designed to protect national security. This represents the first approval for such an advanced AI processor since the 2022 export controls took effect.

**Based on the 2023 Hopper architecture, the H200 delivers roughly twice the inference performance and six times the AI training power of the earlier H20 chip.**
US officials excluded more advanced Nvidia products—those built on the Blackwell architecture and the forthcoming Rubin family—from the arrangement. By permitting exports of this earlier-generation, high-performance chip, policymakers aim to preserve a technological lead without forfeiting access to lucrative sales.

**Under the agreement, Nvidia must remit 25 percent of its China-derived revenues from H200 sales to the US government, up from an initial 15 percent proposal.**
The government will allocate these funds to bolster domestic job creation and semiconductor manufacturing, balancing export facilitation with continued economic and security interests in strategic technology.

**South Korean suppliers SK hynix and Samsung Electronics stand to gain from increased H200 orders, as both companies produce the eight-layer HBM3E high-bandwidth memory modules integral to the chip’s performance.**
China’s mandate favoring domestically produced semiconductors may limit H200 imports, depending on Beijing’s policy toward foreign hardware deployment versus homegrown alternatives.

**Observers view this approval as a strategic shift in Washington’s competition with China in AI and semiconductors.**
Nvidia CEO Jensen Huang says selling chips to China reinforces US market influence and deepens Chinese reliance on American technology. The decision reflects a belief that US leverage over China’s chip capabilities has weakened after advances by firms such as Huawei. It also aligns with the more conciliatory climate ahead of the planned April 2026 US-China summit, using exports and financial terms to shape broader technology relations.

Monitored Intelligence for South Korea - Jan. 1, 2026


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Taiwanese president urges Korean gov't to change country's designation on arrival card

Joongang Ilbo | English | News | Dec. 12, 2025 | UndeterminedPolitical Policy Resistance

Taiwan has escalated its protests against South Korea’s designation of Taiwan as “China (Taiwan)” on Korea’s new electronic arrival card system introduced in February 2025. Taiwan’s Foreign Ministry warned it would review its relationship with Korea, and President Lai Ching-te personally urged the Korean government to amend the label, emphasizing the close trade and people-to-people ties between the two countries. Seoul has not yet provided an official response.

Taiwan’s Deputy Foreign Minister Chen Ming-chi also condemned the designation, calling it an unfriendly measure given Korea’s significant trade surplus with Taiwan. Taiwanese lawmakers from multiple parties criticized the move, with some suggesting it reflects Seoul’s shifting stance toward China. However, Taiwanese tourism stakeholders cautioned against damaging relations, noting the economic importance of Korean visitors.

China supported Korea’s position, with a spokesperson reiterating the One China principle and dismissing Taiwan’s protests as political maneuvers by the ruling Democratic Progressive Party (DPP). Taiwan’s representative office in Seoul has raised the issue several times, but Korea has yet to provide a satisfactory resolution.

Sen. Andy Kim voices concern over U.S. security strategy's 'deprioritization' of Korean Peninsula

Yonhap | English | News | Dec. 12, 2025 | North Korea

Senator Andy Kim, a Korean American lawmaker from New Jersey, expressed serious concerns over the recent U.S. National Security Strategy (NSS) for its "deprioritization" of the Korean Peninsula. He criticized the strategy for omitting a U.S. commitment to North Korea's denuclearization and for failing to recognize Russia as a threat, warning that such omissions could lead the U.S. and its allies "down a very dangerous path." Kim argued the strategy effectively reduces America's global role to that of a regional power, which he believes is the wrong direction for U.S. national security.

The NSS, released by the Trump administration, prioritizes reasserting American influence in the Western Hemisphere, deterring conflict over Taiwan, and promoting burden-sharing with allies. Regarding concerns about a possible U.S. troop reduction in South Korea, Kim highlighted the fiscal year 2026 National Defense Authorization Act (NDAA), which includes measures to prevent unilateral withdrawal of U.S. Forces Korea (USFK) personnel. The House has passed the NDAA, and the Senate is expected to approve it, after which it will require the President's signature to become law.

Kim emphasized that decisions about troop levels should involve consultation with South Korea, underscoring the importance of partnership and strategic alliance. He pledged strong opposition to any efforts by the current administration to reduce U.S. forces in South Korea without allied and congressional agreement. Recently, U.S.-South Korea joint documents omitted language committing to maintaining the current 28,500 USFK troop level, raising concerns over potential future reductions.

The press conference marked one year since Kim became the first Korean American senator, a milestone that raised hopes for his influential role in supporting the Korean American community, strengthening the Seoul-Washington alliance, and addressing North Korea's nuclear threat. Kim's extensive foreign policy background includes service at the National Security Council, Pentagon, State Department, USAID, and advisory roles to top generals in Afghanistan.

Seoul, Tokyo arranging Lee-Takaichi summit in mid-Jan. in Japan's Nara: report

Korea Herald | English | News | Dec. 12, 2025 | Shifting Geopolitical Alliances

South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi are planning a summit in mid-January in Nara, Japan. The talks are expected to take place around January 13-14, with the historic Todaiji Temple in Nara considered a possible venue. Nara Prefecture is Takaichi's home region.

This summit would be Lee's second visit to Japan during his tenure, following a trip to Tokyo in August where he met with Takaichi's predecessor. The leaders aim to maintain positive momentum in bilateral relations through ongoing "shuttle diplomacy," involving reciprocal visits.

Despite efforts to promote future-oriented cooperation, tensions persist due to territorial disputes. Lee's office recently reaffirmed South Korea's sovereignty over the Dokdo islets, rejecting Takaichi's renewed territorial claims. The summit will continue to address both cooperation and historical and territorial issues between the two nations.

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