South Korea

Intelligence for Better Decision Making

Shifting Dynamics in South Korea’s Semiconductor Industry Amid Global Competition
Jan. 8, 2026 | Competitiveness

South Korea’s semiconductor industry demonstrates robust global leadership alongside evolving challenges, supported by strategic domestic and international policies.

**South Korea’s semiconductor sector relies on SK Hynix and Samsung Electronics, which together control 80 percent of the global high-bandwidth memory market.**
This hardware dominance supports a domestic full-stack AI environment built on advanced 5G networks, proprietary models such as Naver’s HyperCLOVA X, and extensive data streams from super apps like Kakao and Naver. The country also leads the world in industrial robot density, strengthening its capabilities in physical AI applications.

**However, the ecosystem faces internal challenges including a shrinking AI talent pool as skilled professionals migrate to US tech firms, leaving South Korea last among OECD countries in net AI talent inflow.**
Companies rely heavily on American AI platforms and foreign capital for data infrastructure, while stringent data regulations restrict training. Occasional power shortages also threaten operational stability in semiconductor fabs.

**Micron Technology is expanding its next-generation HBM4 capacity to 15,000 wafers per month by 2026—roughly 30 percent of its planned 55,000-wafer total—to meet demand from NVIDIA’s “Vera Rubin” AI accelerator.**
The company has already begun equipment investments, plans to boost output in the second quarter, and will launch HBM4 mass production in February. Micron, Samsung, and SK Hynix will coordinate supplies according to NVIDIA’s performance evaluations in the first half of the year. By year-end, an advanced packaging plant in Singapore and, in the second half of 2027, Micron’s Hiromisa plant in Japan will add further capacity.

**China’s semiconductor industry has closed the gap with South Korea, surpassing it in system chip design, infrastructure, and a network of over 3,500 fabless companies versus South Korea’s roughly 150.**
The Korea Institute for Industrial Economics and Trade reports that China outperforms South Korea in 19 out of 30 semiconductor-industry criteria—ranging from R&D to pricing and finished-product services—despite US sanctions. Huawei and Cambricon now produce advanced AI chips domestically, and China pursues leadership across robotics, electric vehicles, batteries, and self-driving cars under its “China Standards 2035” initiative, including the first national standard for EV solid-state batteries.

**The government and ruling party have designated semiconductors as a core growth engine in their 2026 economic strategy, advancing the Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry toward final approval.**
The act aims to position South Korea among the world’s top two semiconductor powers. The economic plan also targets growth in defense, biotechnology, and cultural exports, restructures petrochemicals and steel, advances AX and GX transitions, and promotes regional development through RE100 industrial complexes and gift certificate programs. Financial measures include macroeconomic interventions, long-term domestic stock investment via the National Growth Fund, and tax incentives to channel liquidity into high-growth and venture capital funds.
Autonomous Driving and Robotics Breakthroughs Unveiled at CES 2026
Jan. 8, 2026 | Technology & Innovation

Leading automotive and technology firms revealed groundbreaking robotic and autonomous driving innovations at CES 2026 in Las Vegas.

**On January 6, Chung Eui-sun, Chairman of Hyundai Motor Group, attended CES 2026 to explore cooperation opportunities with major technology companies.**
His visit, following an economic delegation tied to President Yoon Suk-yeol’s state visit to China, represents Hyundai’s effort to strengthen ties with leading tech firms and accelerate progress in robotics and autonomous driving.

**At Hyundai’s booth, Chung reviewed demonstrations of its next-generation robot platform Mobed, the humanoid robot Atlas, and the Ioniq 5 robotaxi.**
He met with executives from Boston Dynamics and Google DeepMind Robotics to discuss technology roadmaps and integration challenges. This initiative reflects Hyundai’s strategy to integrate advanced robotics into its future mobility solutions.

**Chung explored Qualcomm’s high-performance Dragonwing IQ10 processor, signaling Hyundai’s interest in diversifying its chip partnerships beyond NVIDIA and Google.**
He also tested LG Electronics’ AI cockpit and autonomous driving systems for potential use in Hyundai vehicles. At Samsung Electronics, he proposed joint robotics initiatives to President No Tae-moon.

**He concluded the day with NVIDIA CEO Jensen Huang, reaffirming an October agreement for Hyundai to acquire 50,000 Blackwell AI chips.**
Both leaders pledged to fast-track the development and deployment of Hyundai’s proprietary AI models, leveraging this AI infrastructure to enhance in-vehicle intelligence and autonomous capabilities.

**Meanwhile, NVIDIA launched Alpamayo, its first AI system specifically for self-driving cars.**
After the launch, Jensen Huang discussed the new platform with Mercedes-Benz Chairman Ola Källenius and Executive Chair Euisun Chung. Industry speculation suggests Hyundai may adopt Alpamayo to advance its autonomous driving efforts, as it currently trails competitors like Tesla in Level 2+ technology and aims to introduce similar systems in mass-market vehicles by the end of 2027.

**Mercedes-Benz became the first automaker to adopt Alpamayo, incorporating the AI-powered system in the upcoming CLA model debuting in the US in Q1 2026 before a broader rollout.**
Alpamayo’s open-source framework combines vision-language-action models for interpreting visual data, large reasoning modules for complex scenarios, simulation tools for rare or hazardous events, and open datasets for extensive training and validation.

**Addressing concerns about memory supply, Huang emphasized NVIDIA’s role as a leading user of HBM4 high-bandwidth memory technology and cited strong support from Samsung Electronics and SK hynix.**
He said NVIDIA’s demand will drive expanded production capacity, minimizing the risk of shortages and ensuring a steady supply for AI chip development.

Monitored Intelligence for South Korea - Jan. 9, 2026


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보안 사고 뿌리, AI가 알려준다…S2W, '통제 가능한' 침입 분석 프레임워크 제시

AI Reveals Root Causes of Security Incidents…S2W Presents a 'Controllable' Intrusion Analysis Framework

ZD Net Korea | Local Language | News | Jan. 9, 2026 | Cyber Attacks and Data Loss

S2W has developed a framework that identifies the root causes of security incidents using "controllable artificial intelligence (AI)" by combining ontology, knowledge graph, and inference engine technologies. The research, conducted with the Korea Advanced Institute of Science and Technology (KAIST), resulted in a paper titled "Framework for Determining the Root Causes of Network Intrusion," which was accepted by the international information security journal Computers & Security. This journal is recognized globally by academia, government, and industry professionals for its authority in IT security.

The study focuses on fundamentally analyzing causes and relationships in complex network security problems by constructing a chronology of network events to trace the origins of attacks. The team modeled network elements such as events, policy changes, and system states into a knowledge graph to represent incident relationships, employing Probabilistic Soft Logic inference to quantitatively and explainably determine root causes. This approach moves beyond traditional log analysis, providing a structural understanding of security incidents.

This framework builds on S2W’s domain-specialized ontology platform, SAIP, allowing precise analysis of concept relationships to explain decision-making processes. To address the typical "black box" issue in AI, the solution integrates domain ontology, knowledge graphs, and inference engines, enabling explainable and traceable risk tracking based on controllable AI. Lee Seung-hyun, head of S2W’s SAIP product office, highlighted ongoing technological advancements to support complex decision-making challenges in both public and private sectors and plans to expand the framework’s application scope over time.

S. Korean economy to improve in 2026 on chip boom: rating agency

Yonhap | English | News | Jan. 9, 2026 | UndeterminedEconomic Growth

South Korea's economy is projected to improve in 2026, with growth expected to reach 1.8 percent, driven primarily by a boom in the semiconductor sector. However, Korea Investors Service Inc. (KIS) highlighted that economic conditions will remain uneven across industries, with heavy reliance on a few key sectors, particularly semiconductors.

KIS forecasts a slowdown in South Korea's export growth due to the full impact of U.S. import tariffs. Despite this, positive factors such as the semiconductor boom, government monetary easing policies, and a recovery in domestic demand are expected to support the economy.

The semiconductor, defense, and shipbuilding industries are likely to experience favorable prospects in 2026, while sectors such as petrochemicals, construction, retail, steel, duty-free retail, and secondary batteries may encounter challenges. The rating agency also anticipates that the South Korean won will remain weak against the U.S. dollar throughout the year.

Lee calls for closer partnership between S. Korean, Chinese startups

Yonhap | English | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

President Lee Jae Myung called for stronger cooperation between South Korean and Chinese startups to create synergies that drive innovation and new growth. Speaking at the Korea-China Venture Startup Summit in Shanghai on January 7, 2026, Lee emphasized that the traditional model of South Korea providing capital and technology while China supplied land and labor is outdated, as China has now matched or exceeded South Korea in capital and technological capacity.

Lee proposed a "competitive yet cooperative" partnership between the two countries, encouraging competition where necessary and collaboration where beneficial to deepen economic ties. He highlighted that a more connected venture startup ecosystem between South Korea and China could generate significant growth opportunities.

Additionally, Lee pledged to support a business environment that encourages young entrepreneurs to take risks without fear of failure, advocating for government measures to share startup risks and view failure as a stepping stone to success. During his visit, he also attended a business forum in Beijing with top executives from both countries to enhance cooperation in sectors like artificial intelligence and cultural content.

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