South Korea

Intelligence for Better Decision Making

South Korea Accelerates Public Sector Cloud Migration with Major IT Modernization Initiatives
May 12, 2025 | Indirect Indicator

Cloud-native conversions are reshaping South Korea’s public sector IT infrastructure.


The South Korean government launched a 43 billion won, 20-month public sector cloud native conversion initiative to migrate multiple legacy systems to cloud native architectures and provide ongoing performance maintenance. The program aims to modernize public information systems, strengthen infrastructure resilience, and drive operational efficiencies across government entities.

**The National Information Society Agency (NIA) issued a bid notice for work at three organizations: the National Geographic Information Institute (5.5 billion won), the Gyeongsangnam-do Office of Education (4.6 billion won), and Daegu City (2.7 billion won).**
Each contract covers the full project period and requires both system migration and continuous maintenance in a cloud environment.

**This initiative marks phase two of a broader effort to migrate nine public information systems across seven organizations.**
Consultants completed detailed design work for all target systems last year. In phase one, the Ssangyong Information & Communications Consortium delivered the National Land Information Platform and related services, establishing the model for subsequent migrations.

**Phase two focuses on systems not included in the first wave.**
In Gyeongsangnam-do, teams will enhance educational administration platforms; in Daegu City, they will upgrade core public service systems. Both efforts seek to increase system availability, simplify maintenance procedures, and reduce total cost of ownership using cloud native capabilities.

**Later this year, additional conversion projects will proceed, including a 13.9 billion won upgrade for the Government 24 portal, a 4.9 billion won initiative for the Gyeonggi Job Foundation, and a 4.2 billion won modernization of the Korea Transportation Safety Authority.**
These projects advance the government’s push toward comprehensive cloud adoption in public services.

**Government officials say they are building robust, scalable infrastructure to support future digital initiatives while minimizing operational disruptions and lowering IT costs.**
Industry insiders observe that firms engaged in the initial consulting phases are well positioned to secure these conversion contracts, reflecting an accelerated trend in cloud implementation across South Korea’s public sector.
Presidential Race Heats Up as Lee Jae-myung and Kim Moon-soo Solidify Candidacies and Platforms
May 12, 2025 | Indirect Indicator

South Korea’s presidential campaign intensified this month as leading candidates solidified their positions and unveiled competing platforms.

**Lee Jae-myung officially registered his candidacy for the June 3 presidential election on May 11 and immediately seized on the People Power Party’s internal turmoil, calling it a self-inflicted collapse that could advantage his bid.**
At a Changnyeong County event, he quoted former President Kim Young-sam on the dangers of overreaching in politics and recounted a phone call with former PPP primary contender Hong Joon-pyo, joking that Hong might demand a refund on his party investment.

**Alongside his registration, Lee released a comprehensive policy statement aimed at expanding South Korea’s aerospace and defense industries.**
He pledged to transform the South Gyeongsang aerospace complex into a global hub, accelerate R&D in launch vehicles, satellites, ground systems and the KF-21 fighter-jet successor, and develop a domestic aircraft engine. His plan also includes tax credits and increased support for defense-oriented small and medium enterprises.

**A Realmeter poll conducted May 8–10 among 1,508 eligible voters shows Lee leading PPP candidate Kim Moon-soo 52.1 percent to 31.1 percent in a three-way race that includes New Reform Party’s Lee Jun-seok at 6.3 percent.**
This represents a rise from a prior survey in which Lee had 46.6 percent, Kim 27.8 percent and Lee Jun-seok 7.5 percent. Among politically moderate respondents, Lee commands 54.9 percent support versus Kim’s 24.3 percent. In an alternate matchup substituting former Prime Minister Han Duck-soo for Kim, Lee holds 51.7 percent, Han 30.5 percent and Lee Jun-seok 5.8 percent. The poll also finds 55.8 percent of voters favor transferring the presidency to the Democratic Party or other opposition parties, while 39.2 percent prefer continuity with the PPP or the conservative bloc. The survey’s margin of error is ±2.5 percentage points at a 95 percent confidence level.

**On the same day Lee registered, PPP candidate Kim Moon-soo also filed his papers, stressing the need to address national crises and enhance citizens’ well-being.**
His bid followed a heated internal dispute in which party leadership sought to replace him with Han Duck-soo, who polled more strongly against Lee. A PPP all-member meeting rejected that motion, allowing Kim to remain the nominee—a result he described as highly unusual and a surprising miracle.

**After registering, Kim met with Han at PPP headquarters, where they embraced and discussed party unity.**
Han congratulated Kim and offered his support, and Kim proposed that Han serve as chair of his election committee pending practical discussions on next steps.

Monitored Intelligence for South Korea - May 12, 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.

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전국으로 퍼진 버스 노사 갈등…전국 4만대 멈추나

Bus labor-management conflict spreads nationwide… Will 40,000 buses be stopped nationwide?

Newsis | Local Language | News | May 12, 2025 | Strikes and Work Stoppages

The labor-management conflict concerning wage negotiations for Seoul city buses has expanded nationally, with threats of a simultaneous strike involving 40,000 buses if no agreement is reached by May 27th. The Korean Automobile Workers' Union (NAAU) has announced plans for a nationwide strike from May 28th, marking the first such action in 13 years. The union plans to apply for mediation on May 12th, emphasizing the need for urgent negotiations before the potential strike.

Key issues in the conflict include demands from the union to include bonuses in standard wages based on a Supreme Court ruling. However, the Seoul city government and management have expressed reluctance due to the significant wage increase implications. Recent mediation efforts have failed, leading the Seoul City Bus Labor Union to escalate its actions after legal struggles commenced last month. Local governments, including Incheon and Busan, have joined in response to the wage issue, recognizing it as a concern that affects all public transportation systems.

As tensions rise, the Seoul Bus Union is contemplating further actions, including a partial strike prior to the scheduled nationwide strike if negotiations remain unproductive. The Seoul Metropolitan Government is committed to minimizing disruptions to bus services and will continue to monitor and respond to the situation closely, emphasizing the necessity for joint measures across regions and preparing for potential impacts on citizens.

[반차장보고서] '2nm GAA' 수율 잡을수록 딜레마 커지는 삼성...TSMC "반도체 통제 한계"

[Vice President's Report] Samsung's Dilemma Grows as Its Yield of '2nm GAA' Grows...TSMC "Limits to Semiconductor Control"

Digital Daily | Local Language | News | May 12, 2025 | UndeterminedTech Development/Adoption

Samsung Electronics is grappling with challenges in the semiconductor market as it works to enhance the yield of its 2nm gate-all-around (GAA) technology. While improvements in yield could benefit Samsung, tensions with major customer Qualcomm are rising, as Qualcomm seeks to protect its dominant market position. Samsung is aiming to stabilize the yield of the 2nm GAA process in the second quarter and has begun test production of the Exynos 2600 chip, intended for the 2026 Galaxy S26. Currently, the yield of the Exynos 2600 is about 30%, with expectations to reach 40%.

Qualcomm, which relies heavily on Samsung for approximately 75% of its application processors, may see its market share decline as Samsung increases the integration of its own Exynos chips. This shift could complicate negotiations between the two companies, forcing Samsung's foundry division to navigate the intricate dynamics of its internal competition and customer partnerships.

On the other hand, TSMC has acknowledged its inability to fully control the distribution routes of its semiconductors, particularly regarding concerns around export regulations with Huawei. The complexity of the global semiconductor supply chain raises questions about potential lapses in regulatory compliance that could allow Chinese companies to access advanced chips. Despite U.S. efforts to restrict China’s access to AI semiconductors, there are doubts about the effectiveness of these measures in sealing supply chain gaps.

Both Samsung and TSMC face crucial challenges in maintaining technological leadership and managing customer relationships, especially as demand for AI technologies is anticipated to soar. The competitive landscape in the semiconductor market is intensifying, and both companies are focusing on technological innovation and long-term growth strategies built on trust with their customers.

'의약품 미국 생산' 옥죄는 美…"해외제조 불시검사 확대"

US tightens grip on 'US pharmaceutical production'… "Expanding surprise inspections of overseas manufacturing"

Newsis | Local Language | News | May 12, 2025 | Regulation

The US Food and Drug Administration (FDA) has announced an expansion of surprise inspections for overseas manufacturing facilities that produce pharmaceuticals and food products. This initiative, which aims to enhance product reliability, is part of a broader effort by the Trump administration to bolster domestic pharmaceutical manufacturing and reduce reliance on foreign suppliers. The announcement follows the signing of an executive order by President Trump on May 5, which sought to streamline regulations to promote local production.

The FDA highlighted that the oversight of foreign manufacturers was inadequate compared to domestic ones, as US companies were often inspected unexpectedly, while foreign firms received advance notice. The agency reported that foreign facilities still exhibited significantly more serious deficiencies in inspections, even with prior warning. The expanded inspections are intended to bring overseas facilities under stringent regulatory scrutiny, similar to that faced by domestic manufacturers.

The executive order also mandates that the FDA develop a plan within 90 days to improve the risk-based inspection system for foreign pharmaceutical producers. This includes increasing foreign inspection fees and requiring better compliance reporting from overseas facilities. The implications of these regulatory changes are expected to pose a challenge for domestic pharmaceutical and biotechnology companies, impacting their quality control measures and regulatory responses when exporting to the US market.

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