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 - Dec. 12, 2025


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No settlement reached between Oxy, victims in humidifier disinfectant case

Yonhap | English | News | Dec. 12, 2025 | Corporate Corruption or Fraud

The South Korean Ministry of Trade, Industry and Resources announced the official end of mediation between Oxy Reckitt Benckiser and victims of the toxic humidifier disinfectant scandal, as no settlement was reached in an ongoing appeal case. Mediation efforts were led by the National Contact Point (NCP) for Responsible Business Conduct, a government body implementing OECD guidelines for multinational enterprises. The NCP has made three attempts to facilitate a settlement after individual consumers requested additional relief measures for victims whose injuries were not covered under the existing damage classification system.

The humidifier disinfectant scandal is considered one of South Korea's worst consumer product disasters, with Oxy, a Korean subsidiary of the British company Reckitt Benckiser, held responsible for selling products linked to deaths and illnesses starting in 2011. By 2023, 5,691 people were eligible for government-backed compensation, including 1,262 fatalities. Oxy maintains it cannot provide further compensation, having completed settlements and paid into a government-managed relief fund.

The NCP criticized Oxy for insufficient efforts to verify product safety and for making false safety claims. It urged the company to improve its internal policies, strengthen communication with victims outside the existing injury classification, and participate in the environment ministry-led relief efforts. The NCP also recommended that Oxy’s headquarters in Britain engage in these processes and submit a progress report within one year.

휴네시온, 공급망 보안 통합 위험관리 체계 구축

Hunesion Establishes Integrated Risk Management System for Supply Chain Security

ZD Net Korea | Local Language | News | Dec. 12, 2025 | Supply Chain Issues

Hunesion, led by CEO Jung Dong-seop, has established an integrated risk management system focused on supply chain security and conducted company-wide SBOM-based supply chain security policy and operations training. This initiative addresses growing concerns about software supply chain attacks amid accelerated digital transformation. The training aims to set security policies, operational guidelines, and strengthen response capabilities to protect company and customer assets.

Globally, including in the United States and Europe, policies mandating SBOM (Software Bill of Materials) submission are being implemented, with the U.S. requiring it for software and medical devices supplied to the federal government. South Korea plans to institutionalize SBOM submission for public sector IT systems and products by 2027 as part of its comprehensive information protection plan announced in October.

SBOM, which applies the manufacturing Bill of Materials concept to software, is central to supply chain security by enabling identification and management of software components. In June 2025, Hunesion was selected for KISA’s “Supply Chain Security Model Construction Support Project,” under which it built an SBOM-based integrated risk management system. This system is incorporated into Hunesion’s network interconnection solution, i-oneNet, allowing prevention of threats across software development, manufacturing, distribution, and deployment phases, as well as enabling rapid incident response.

Hunesion recently inspected the 'React' server component vulnerability, confirming no impact on its systems. The company held SBOM-based security policy training for employees on December 8 and presented SBOM sharing strategies for supply chain threat response at the Peace & Park Convention on December 5.

Hunesion leads a consortium of five firms, each bringing specialized capabilities: SecureSystems provides AI-driven real-time threat monitoring, O2ones supports SBOM internalization, Cryptolab offers homomorphic encryption for SBOM distribution modeling, and EconetSystem handles SBOM provision systems and operational support. Together, they demonstrate comprehensive strategies covering the software supply chain lifecycle.

The i-oneNet solution, known for protecting networks from external and internal cyber threats, has led the domestic network interconnection public procurement market since 2015. It incorporates advanced features such as N2SF, quantum-resistant cryptography, cloud compatibility, and AI support. Product lines like i-oneNet DD and i-oneNet DX are tailored for operational technology (OT) security environments in critical infrastructure, supporting the digital transformation of industrial control systems.

Given the critical importance of supply chain security in national infrastructure sectors—such as power, gas, water, transportation, and communications—Hunesion is also involved in an international R&D project to develop an S/HBOM-based integrated security management platform for industrial control system supply chains, aimed at enhancing global competitiveness.

CEO Jung Dong-seop emphasized Hunesion’s decade-long leadership in network interconnection and the company’s successful internalization of a supply chain security management system to comply with strengthened government standards under the national information protection plan.

Seoul official to urge U.S. to swiftly implement efforts allowing S. Korea to enrich uranium, reprocess spent fuel

Yonhap | English | News | Dec. 12, 2025 | Geopolitical Conflict and Disputes

South Korea's Second Vice Foreign Minister Kim Jina arrived in Washington on December 10, 2025, to urge the United States to swiftly implement an agreement enabling South Korea to enrich uranium and reprocess spent nuclear fuel for peaceful purposes. This request follows a prior agreement between the two countries, and Kim emphasized the need to start substantive discussions by assigning South Korea's counterpart in the process.

The upcoming 10th Senior Economic Dialogue (SED) between Kim and U.S. Under Secretary of State for Economic Affairs Jacob Helberg will focus on enhancing bilateral economic and industrial cooperation. Topics expected to be covered include shipbuilding, energy, cutting-edge technologies, critical minerals, and small modular reactors. However, the issue of South Korea's ambition to build nuclear-powered submarines will not be discussed during the SED, as it is considered a military matter slated for separate talks involving South Korea's National Security Adviser Wi Sung-lac.

The backdrop to this diplomatic activity includes a November 13 joint fact sheet where the U.S. expressed support for South Korea's civil nuclear fuel cycle activities, marking a departure from previous restrictions under the bilateral nuclear energy pact. South Korea is seen as an important partner in the U.S.'s broader "nuclear energy renaissance," with cooperation anticipated to benefit both nations. After the SED, Kim will represent South Korea at the "Pax Silica" artificial intelligence summit later in the week.

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