South Korea

Intelligence for Better Decision Making

South Korean Corporations Advance AI Integration and R&D to Drive Industrial Transformation in 2026
Jan. 6, 2026 | Technology & Innovation

South Korean corporations are integrating artificial intelligence and bolstering research and development to reshape industrial processes and accelerate growth.

**Hyundai Motor Group’s Executive Chair Euisun Chung positioned artificial intelligence as a catalyst for industrial transformation and a driver of significant growth.**
He argued that the group’s vast troves of data on moving physical assets—vehicles and robots—along with detailed manufacturing process information give Hyundai a competitive edge that big tech rivals will struggle to replicate. Chung urged faster, transparent decision-making, calling for prompt communication and embedding employee-led analysis and conclusions directly into reporting processes. He warned that global uncertainty—from supply chain restructuring and slowing economic growth to rising geopolitical fragmentation—will likely materialize into real risks. To respond, he advocated deep organizational reflection, quicker reporting, and greater transparency. Looking ahead, Chung identified AI, software-defined vehicles, and future mobility as core growth pillars and announced a plan to invest 125.2 trillion won (about US$86.5 billion) by 2030 in both quantitative expansion and qualitative advancement.

**Amid this push for digital transformation, the Korea Industrial Technology Promotion Association’s 2026 R&D Outlook Survey reported a strong rebound in corporate R&D sentiment.**
The investment index jumped to 99.7 from 79.6 in 2025, signaling stabilization after a prior decline, while the personnel index, which tracks researcher hiring sentiment, rose to 94.9 from 84.2. Companies cited expanding existing operations (30.5%), pursuing new digital businesses—particularly AI-related ventures (19.0%)—and strong management willingness to invest (18.4%) as primary drivers of increased R&D spending, whereas investments toward carbon neutrality remained low at 2.3%. Mid-sized firms led the charge with an investment RSI of 103.1, while large and small enterprises held steady. Sector analysis showed robust investment and hiring in electrical and electronics—led by semiconductors (investment RSI 110.7, personnel RSI 104.2)—and positive trends in machinery, information and communications, and chemicals. In contrast, construction, materials, and automotive sectors continued to contract, all with indices below 91. Industry leaders stressed that a supportive policy environment remains essential to sustain selective and concentrated R&D investments.

**Samsung Electronics outlined a company-wide strategy to embed AI technology across its entire product lineup and realize a vision of becoming an “AI companion” in daily life.**
President Roh Tae-moon introduced the Vision AI Companion platform for TVs, which offers improved contextual understanding, and unveiled HDR10 Plus Advanced to enhance display performance in 2026 models. In home appliances, Samsung plans to integrate advanced screens, cameras, and voice-recognition systems within its SmartThings ecosystem to enable seamless inter-device communication and automate household tasks. The company will also expand AI features in Samsung Health, using user data to personalize wellness guidance, detect chronic disease risks, offer nutritional recommendations, and provide new tools for monitoring cognitive health.

**LG Electronics will showcase AI-powered home appliances at CES 2026 under the theme “Zero Labor Home, Make Quality Time.” The centerpiece of its exhibition, the LG CLOiD robot, employs AI and robotics to perform household chores such as cooking and laundry, adapting to individual user routines to streamline daily tasks.**
Bribery and Obstruction Allegations Shake Democratic Party Leadership
Jan. 6, 2026 | Governance & Law

Bribery and obstruction allegations have emerged against a ruling Democratic Party lawmaker.

**Kim Byung-gi has denied receiving nomination money or obstructing investigations into his wife’s alleged misappropriation of operating expenses.**
He acknowledged personal mistakes but maintained there are no legal grounds for the charges. Despite growing calls for his resignation or expulsion, Kim said he will remain in the party and will not step down voluntarily.

**On December 30, 2025, Kim resigned as the party’s floor leader after reports surfaced that former lawmaker Kang Sun-woo received 100 million won in 2022 in exchange for a city councilor nomination.**
Kang, who served with Kim on the nomination management committee—Kim as secretary, Kang as a member—was expelled from the party the following day.

**Suspicions against Kim also include allegations that he accepted tens of millions of won from district councilors in return for nominations before the 2020 general election and impeded investigations into his wife’s expenses in 2024.**
Police have opened a probe under the Improper Solicitation and Graft Act, dereliction of duty, and abuse of official authority. Kim insists the councilors were electoral competitors, not candidates, and has asked for time to clarify the facts.

**On January 5, the opposition People Power Party accused Kim and independent lawmaker Kang Sun-woo of forming a “nomination bribe cartel” and urged the appointment of a special prosecutor.**
PPP leader Jang Dong-hyeok pointed to evidence such as a recorded plea by Kang and alleged that police inquiries were passive and influenced by aides to President Lee Jae-myung.

**In response, the Democratic Party rejected any connection between the allegations and President Lee Jae-myung, noting that a different emergency committee system was in place at the time and Lee did not serve as party leader.**
Spokesperson Kim Hyun-jung called the PPP’s claims false, demanded an apology from Jang Dong-hyeok, and warned of possible legal action if he fails to retract his statements.

**Also on January 5, a civic group focused on judicial justice filed a complaint against Rep.**
Kim Byung-gi, accusing him of receiving illegal political funds from two local councilors in his Seoul constituency in 2020 and returning the money three to five months later. The group further alleged that Kim accepted an expensive accommodation voucher from Korean Air. Separately, the group lodged a complaint against Kim Hyun-ji, a personal secretary to President Lee Jae-myung, alleging she condoned the misconduct while serving as the Democratic Party chairperson’s secretary.

Monitored Intelligence for South Korea - Jan. 7, 2026


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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.

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Hanmi Semiconductor launches EMI Shield 2.0 X series for aerospace markets - CHOSUNBIZ

Chosunbiz | English | News | Jan. 7, 2026 | UndeterminedTech Development/Adoption

HANMI Semiconductor launched the EMI Shield 2.0 X series on January 5, 2026, targeting the aerospace and low Earth orbit (LEO) satellite communications markets. The product line consists of five models: EMI Shield Vision Attach (ATTACH) 2.0 X, EMI Shield Vision Detach (DETACH) 2.0 X, EMI Shield Micro SAW & Vision Placement (micro SAW & VISION PLACEMENT) 2.0 X, EMI Shield Tape Mounter (TAPE MOUNTER) 2.0 X, and EMI Shield Tape Laser Cutting (TAPE LASER CUTTING) 2.0 X.

HANMI Semiconductor has led the EMI shield equipment market since 2016 and supplied global aerospace companies for three consecutive years since 2023. The EMI Shield 2.0 X series, the first new model in about three years since December 2022, offers improved precision and user convenience, including a proprietary Ball Grid Special Algorithm and multiple patented technologies. Features like automatic device switching reduce operator involvement and enhance operational efficiency.

EMI shield equipment is critical for protecting aerospace, LEO satellites, and defense drones from electromagnetic interference, which can cause malfunctions in semiconductors and jeopardize safety. The increasing use of Wi-Fi on aircraft has further accelerated demand for EMI shielding. The LEO satellite communications market is projected to grow at a CAGR of 11.9% from $11.81 billion in 2025 to $20.69 billion in 2030, with satellite launches rising accordingly.

Beyond aerospace and LEO, EMI shielding is also important for smartphones, wearables, and IoT devices due to their multifunctional and compact designs. HANMI Semiconductor aims to strengthen its global market position by responding to the growing aerospace market and demand for high-performance electronic devices.

“STRUCTURAL CONTROL” AS A CORE CRITERION FOR DETERMINING “EMPLOYER” STATUS

Bae, Kim & Lee LLC | English | AcademicThink | Jan. 7, 2026 | Regulation

On December 26, 2025, the Ministry of Employment and Labor (MOEL) issued draft interpretation guidelines for the Yellow Envelope Act, detailing criteria to determine "employer" status and the scope of labor disputes arising from business management decisions. These Guidelines, effective March 10, 2026, introduce "structural control over working conditions" as the core criterion for defining a "non-contractual employer," emphasizing continuous and systematic control rather than merely contractual relationships.

The Guidelines specify that structural control involves the principal contractor's effective determination or significant restriction of working conditions typically exercised through organized rules and systems. Supplementary indicators include organizational integration of subcontracted labor and economic dependency of the subcontractor on the principal contractor. Despite aiming to distinguish substantive control from illegal worker dispatch, overlapping factors complicate this separation, warranting companies to prepare for potential legal challenges under both frameworks.

Economic dependency is treated as a supplementary factor but remains important in assessing substantive control, with the possibility of its status evolving through appellate court decisions. Furthermore, the Guidelines allow for partial recognition of employer status, categorizing working conditions into six areas such as wages, safety, and working hours, where control may be recognized selectively rather than comprehensively. The Guidelines also identify certain contract types and work categories, such as delivery outsourcing or temporary work, where principal contractors are less likely to be deemed employers.

Regarding labor disputes, the Guidelines expand their scope to include business management decisions that affect working conditions, determinations related to employee status, and employer violations of collective bargaining agreements. Business management decisions exempt from collective bargaining become subject to negotiation when they cause substantive changes to employees’ status or working conditions, including foreseeable measures. While collective bargaining covers collective issues, individual member-specific disputes remain excluded.

The Guidelines restrict recognition of employer violations of collective bargaining agreements to clear cases, such as acknowledged violations or those verified by Labor Relations Commission rulings, reflecting a narrow interpretation aligned with the typical jurisdiction of courts or commissions. Bae, Kim & Lee LLC has established a specialized task force to assist clients in assessing employer status risks, advising on contract adjustments, and preparing for expanded union bargaining, emphasizing tailored strategies reflective of diverse contracting arrangements in various industries.

Lee, Xi share view on importance of resuming talks with N. Korea: security adviser

Yonhap | English | News | Jan. 7, 2026 | North Korea

President Lee Jae Myung of South Korea and Chinese President Xi Jinping emphasized the importance of resuming dialogue with North Korea during their summit in Beijing on January 5, 2026. They agreed to explore measures to promote peace on the Korean Peninsula, particularly as North Korea escalated tensions by launching ballistic missiles just hours before Lee’s arrival.

The two leaders reaffirmed that peace and stability on the Korean Peninsula serve the interests of both South Korea and China. Lee was assured of China’s willingness to play a constructive role toward this goal. They also agreed on holding annual meetings and expanding communication and exchanges between their defense authorities to build mutual trust and contribute to regional peace and stability.

Since taking office in June 2025, President Lee has made efforts to improve relations with North Korea, but Pyongyang has remained unresponsive to his peace initiatives. The summit also included a signing ceremony of memorandums of understanding between the two countries.

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