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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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KFTC AMENDS CONSUMER PROTECTION GUIDELINES IN E-COMMERCE TRANSACTIONS

Bae, Kim & Lee LLC | English | AcademicThink | Dec. 12, 2025 | Regulation

The Korea Fair Trade Commission (KFTC) has amended its Consumer Protection Guidelines in Electronic Commerce Transactions, effective October 24, 2025. The amendments establish detailed standards and recommendations concerning regulations on six types of online dark patterns under the Act on Consumer Protection in Electronic Commerce. These include hidden renewal, drip pricing, pre-selected options, false hierarchy structures, obstructing cancellation or withdrawal, and nagging.

The amended Guidelines clarify that businesses must obtain explicit consumer consent at least 30 days prior to increasing recurring payments or converting free trials to paid services. They define the initial price display page and the total mandatory price, which must include all compulsory fees but exclude optional or circumstance-specific costs. The Guidelines provide concrete examples of prohibited practices relating to pre-selected options, false hierarchy, obstructing cancellation, and nagging to enhance clarity and market predictability.

Recommendations within the Guidelines advise businesses to clearly disclose pricing conditions, notify consumers of possible additional charges from optional selections, ensure consumers can decline these options, and prominently display cancellation or withdrawal buttons. These changes signal the KFTC's intent to strengthen enforcement against dark patterns, urging businesses to review and comply with the updated regulations to avoid violations.

금융보안원 "연이은 해킹, 디지털 혁신만큼 AI·제로트러스트 중요"

Financial Security Institute "Consecutive Hacks Make AI and Zero Trust as Important as Digital Innovation"

Digital Daily | Local Language | News | Dec. 12, 2025 | Cyber Attacks and Data Loss

Park Sang-won, president of the Financial Security Institute, emphasized the critical need to strengthen AI technology frameworks and implement zero-trust security strategies to prevent large-scale security incidents in the financial sector. Speaking at the "Financial IT Innovation" event in Seoul on December 11, 2025, he asserted that the importance of security has grown to equal that of digital innovation, urging financial companies to continuously develop new security systems.

Financial authorities are shifting from rule-based regulations to principle-centered security frameworks, encouraging firms to build autonomous security environments. Park highlighted that with the government's move to relax network separation regulations, financial companies should focus on constructing updated security frameworks beyond traditional network separation.

AI is highlighted as a vital strategy to address evolving security challenges. The Financial Security Institute is supporting financial companies by providing AI security assessments and performance verification metrics. Park also noted ongoing preparations of unique AI guidelines for the financial sector in collaboration with financial authorities, driven by the AI Innovation Act.

Zero trust, which assumes threats arise both externally and internally, was underscored as essential following recent hacking incidents. The Institute is working with financial companies through consultative bodies to implement zero trust and is exploring models for export and overseas trends.

Park forecasted that as AI integration advances in financial services, leading to complex interconnections and innovation, security will become increasingly crucial. He described this shift as moving beyond digitalization toward AI-based reconfiguration, necessitating stronger security measures.

[소부장 테크페어] 유미코아 “HLM 양극재 준비 완료…차세대 소재도 개발”

[Sobu-Jang Tech Fair] Umicore ready with HLM cathode material… also developing next-generation materials

ET News | Local Language | News | Dec. 12, 2025 | UndeterminedTech Development/Adoption

At the 2025 Global Materials, Parts and Equipment Tech Fair held on December 10th in Seoul, Umicore outlined its strategy to diversify its cathode material portfolio. The company is set to complete development and establish mass production of high-lithium manganese (HLM) cathode materials by next year, aiming to improve price competitiveness through the use of manganese, a lower-cost element. HLM materials offer higher energy density compared to lithium iron phosphate (LFP), but Umicore plans to avoid competing in the LFP sector, choosing instead to focus on HLM to differentiate itself from Chinese market leaders.

Umicore, a Belgium-based global chemical materials company with a 200-year history, currently operates a cathode material plant in Cheonan, South Korea, and supplies to major domestic battery manufacturers LG Energy Solution, Samsung SDI, and SK On. Traditionally focused on high-nickel, cobalt, manganese (NCM) cathodes, Umicore will expand next year into HLM materials. The company aims to address the current electric vehicle market slowdown by leveraging HLM's cost advantages and intends to boost the energy capacity of mid-nickel cathodes by increasing maximum voltage from about 4.2 V to 4.4 V.

In addition to HLM, Umicore is developing cathode materials targeted at next-generation solid-state batteries, which provide higher energy density and improved safety by using solid electrolytes. The company is working on new cathode coating technologies to enhance compatibility and electron transport with solid electrolytes, collaborating with research institutes and partners in these efforts.

Umicore is also researching disordered rock salt (DRX) cathode materials for the post-2035 period. These next-generation materials incorporate elements such as lithium, manganese, titanium, zirconium, and molybdenum and are aimed at delivering cost advantages. The company is in the early stages of this R&D but plans to build a comprehensive cathode material portfolio to serve a range of electric vehicle segments from low- to premium-priced models.

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