South Korea

Intelligence for Better Decision Making

Korean Semiconductor Industry Accelerates Ecosystem Expansion in Taylor, Texas
Nov. 11, 2025 | Firms

The Korean semiconductor industry is significantly expanding its production and supply chain footprint in Taylor, Texas.

**Samsung Electronics is advancing construction of a semiconductor foundry cluster in Taylor, planning to begin plant operations in 2026.**
Having designated Taylor as a next-generation foundry hub in 2021, Samsung designed this initial phase to support leading-edge chip manufacturing processes and to anchor a broader production ecosystem.

**Partner companies have accelerated their establishment of supporting production facilities and recruitment efforts in Texas.**
Soulbrain is investing approximately 800 billion won in a precision chemical plant, Dongjin Semichem will spend 160 billion won to expand its production capabilities, and FST is moving to set up material-production capacity. Meanwhile, Hanyang ENG will establish its North American headquarters in Texas to collaborate directly with Samsung’s foundry operations.

**iMarket America, a subsidiary of iMarketKorea, is developing the 860,000-square-meter Gradient Technology Park industrial complex in Taylor.**
Built in three phases with full completion expected by 2031, the complex will host semiconductor-related facilities. A groundbreaking ceremony on November 17 will gather around 100 key figures from Korea, Texas, and the corporate sector to launch site work.

**Since naming Taylor as its hub, Samsung committed an initial US$17 billion and plans to invest more than US$37 billion by 2030 to build out the semiconductor production ecosystem.**
These funds cover the foundry plant itself, upstream materials and chemical suppliers, equipment partners, logistics infrastructure, and workforce-training initiatives. This effort aligns with the US government’s CHIPS and Science Act, which offers incentives and cost-sharing programs to localize semiconductor supply chains and reduce reliance on foreign suppliers.

**Industry sources note that Samsung and its partners are creating a vertically integrated value chain—from raw-material production through chip fabrication and packaging—rather than merely shifting manufacturing capacity overseas.**
The combined investments by Samsung, Soulbrain, Dongjin Semichem, FST, Hanyang ENG, and iMarket America aim to establish a comprehensive semiconductor ecosystem in the Taylor region.
Naver and Kakao Announce AI Agent Platform Strategies Following Strong Q3 Results
Nov. 11, 2025 | Technology & Innovation

Leading Korean tech firms Naver and Kakao reported strong Q3 2025 financial results and unveiled plans to transform their platforms with advanced AI agent technologies.

**Naver posted third-quarter revenue of 3,138.1 billion won, up 15.6% year-on-year, and operating profit of 570.6 billion won, an 8.6% increase.**
The company credited AI integration across search, advertising, commerce, fintech and cloud services for driving balanced growth. AI-driven features boosted user engagement and monetization, supporting both top-line and bottom-line expansion.

**Kakao generated 2,086.6 billion won in Q3 revenue, a 9% year-on-year rise, and operating profit of 208.0 billion won, up 59%.**
Advertising remained a key growth driver, with AI-enhanced ad targeting and performance analytics improving results. Fintech, mobility and commerce also contributed to profitability, reflecting the strength of Kakao’s diversified service portfolio.

**After these results, both companies outlined their evolution into AI agent platforms.**
Naver will launch “Agent N” in early 2026 as an execution-oriented AI agent platform. Agent N will integrate services such as a shopping agent and an AI tab that offer personalized recommendations and execute tasks based on user inputs and data signals. Naver plans to link its internal services with external partner offerings to create a seamless AI-driven user experience. Kakao aims to debut “Kanana Search” in 2026, an AI agent that interprets user intent and orchestrates services across finance, mobility and other verticals. The company describes this as an “agentic AI” ecosystem, where the technology not only responds to queries but also autonomously thinks and acts to complete tasks. Kakao will support an agent marketplace that invites external developers to build specialized services in commerce, financial planning and travel.

**Both firms view external partnerships as essential for a robust AI ecosystem.**
Naver intends to integrate third-party offerings seamlessly with its own platform to enhance overall utility. Kakao has already received inquiries from major sector partners eager to join its agent marketplace, signaling early market interest in co-developing agent-driven applications.

**By embedding AI capabilities throughout their service portfolios and building on recent revenue momentum, Naver and Kakao aim to redefine user interactions and open new channels for sustained engagement and monetization.**

Monitored Intelligence for South Korea - Nov. 12, 2025


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더 똑똑해진 북한발 해킹…스마트폰·PC·카톡 장악해 원격 조종

More Sophisticated North Korean Hacking… Remote Control by Seizing Smartphones, PCs, and KakaoTalk

Digital Daily | Local Language | News | Nov. 12, 2025 | North Korea

A North Korean-backed hacking group has been found to remotely control Android smartphones and PCs, deleting key personal data and hijacking KakaoTalk accounts to distribute malicious files to users' contacts. The attack involved mass distribution of malware disguised as a "stress relief program" via KakaoTalk messenger, linked to the "Konni APT" campaign, associated with North Korean groups Kimsuky and APT37. In several cases in South Korea, victims' Google Android devices were remotely reset, resulting in data loss.

The attackers infiltrated devices, remained dormant, and stole credentials for Google and domestic IT services. They exploited Google's "My Device Hub," a service designed to locate and protect lost Android devices, to gain remote control, track devices, and perform resets. This is reportedly the first documented instance of this service being abused in an APT campaign. Additionally, hackers used PC webcams to verify if victims were away, potentially capturing both video and audio without user awareness, increasing privacy and security risks.

Genians Security Center (GSC) recommended users strengthen account security and called for enhanced security policies around the "My Device Hub" service. They also advised that messenger platforms improve file verification and implement warning notices to prevent users from downloading and executing malicious files.

개보위, SKT에 1347억원 과징금 의결서 송달…행정소송 불가피

PIPC Delivers Decision to Levy 134.7 Billion Won Fine on SKT…Administrative Lawsuit Inevitable

ET News | Local Language | News | Nov. 12, 2025 | Regulatory Enforcement Actions

The Personal Information Protection Commission (PIPC) has imposed an administrative fine of 134.7 billion won and an additional penalty of 9.6 million won on SK Telecom for failing to implement adequate safety measures and for delayed notification of a personal information leak, including USIM information. This fine is the largest since the PIPC’s establishment. The decision also includes corrective orders obligating SK Telecom to restructure its governance system to empower the Chief Privacy Officer and to implement measures preventing future incidents.

The decision document was delivered to SK Telecom in late October, confirming the sanctions announced in August. SK Telecom is required to pay the fine and penalty within 30 days but has already accounted for the fine in its third-quarter financials. The telecommunications industry expects SK Telecom to file an administrative lawsuit challenging the fine, which must be done within 90 days of receipt of the decision. SK Telecom has been working with law firm Gwangjang but may seek additional legal representation if the lawsuit proceeds.

Industry observers anticipate SK Telecom will reject the PIPC’s dispute mediation offer that would require paying 300,000 won each to nearly 4,000 applicants affected by the leak, which could amount to approximately 1 billion won. However, if compensation claims are expanded to all 23 million subscribers, potential costs could escalate to about 7 trillion won. The escalating legal dispute between SK Telecom and the PIPC is expected to continue.

Korean Air-Asiana merger's route distribution has LCCs in holding pattern

Joongang Ilbo | English | News | Nov. 12, 2025 | UndeterminedMergers & Acquisitions

The South Korean government is redistributing 10 flight routes following the Korean Air-Asiana Airlines merger, which has attracted strong interest from low-cost carriers (LCCs) seeking new slot opportunities. The routes include six international flights—Incheon to Seattle, Honolulu, Guam, Jakarta, London, and Busan to Guam—and four domestic ones between Gimpo, Jeju, and Gwangju airports. Applications for these routes closed on November 10, 2025.

The Korea Fair Trade Commission approved the merger on the condition that Korean Air and Asiana transfer slots and traffic rights on 34 routes to prevent monopolies or duopolies. Redistribution of the remaining routes is planned in phases beginning in the first half of 2026. Southeast Asian routes, especially Incheon to Jakarta, are seeing the most interest from LCCs, as only a few are ready to operate longer haul flights to the US or UK, while short-haul markets like Japan are already saturated.

The US and UK competition authorities have designated Air Premia and Virgin Atlantic as replacement carriers for the Incheon-Honolulu and Incheon-London routes, respectively. Among domestic LCCs, Jeju Air and Eastar Jet are likely candidates for the Jakarta route, supported by business demand linked to major companies near Jakarta. Airlines must secure traffic rights under bilateral agreements to operate these international routes.

The government aims to finish the allocation process by year-end 2025. The first evaluation will assess applicants for independence from Korean Air Group affiliates and potential competition issues, with results expected in late November. The Ministry of Land, Infrastructure and Transport will then review safety, passenger convenience, operational plans, viability, and regional airport contributions, announcing final selections by the end of December.

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