South Korea

Intelligence for Better Decision Making

South Korea Elevates Science and ICT Ministry as National AI Leadership Center
Oct. 2, 2025 | Technology & Innovation

South Korea has empowered its Ministry of Science and ICT as the national hub for artificial intelligence and technological innovation by elevating its minister to the rank of Deputy Prime Minister.

**The Cabinet approved a bill elevating the Minister of Science and ICT to Deputy Prime Minister, officially designating the ministry as the national control tower for science, technology and artificial intelligence.**
Minister Bae Gyeong-hoon will concurrently serve in both roles, coordinating policy across central administrative agencies to advance South Korea’s goal of ranking among the world’s top three AI powers.

**To strengthen cross-ministerial coordination, the ministry will appoint a director-general–level Science, Technology and AI Policy Cooperation Officer and convene a Science, Technology and AI Ministers’ Meeting.**
Rather than merely processing agendas, this meeting will serve as a substantive cooperation platform to unify national efforts in science, technology and AI.

**Within the Second Vice Minister’s Office, the ministry will expand the existing bureau-level AI Policy Base Division into a dedicated AI Policy Office.**
This new office will house an AI Policy Planning Director charged with overseeing legislation, industry development, safety, reliability and talent cultivation, alongside an AI Infrastructure Policy Director responsible for expanding computing resources, data infrastructure and cloud technologies.

**The ministry will also elevate its spokesperson role from director-general to senior director to improve communication of policy initiatives and their impacts.**
Experts and the National Assembly Research Service have recommended broadening the ministry’s mandate to address the AI era’s wider challenges, including innovation and societal integration.

President Lee Jae-myung approved the amendment to the Government Organization Act on September 30, 2025, reinstating the Deputy Prime Minister for Science and Technology position for the first time since its abolition in 2008 and formally positioning the Ministry of Science and ICT at that level.

**The reorganization seeks to consolidate resources across government, the private sector and local authorities to propel South Korea toward its top-three global AI ranking.**
Minister Bae stated that these reforms signal a national transformation designed to enhance the economy, industry and daily life through advances in science, technology and artificial intelligence.
Global Acceleration of MCP-Driven AI Agent Ecosystems and Security Solutions
Oct. 2, 2025 | Technology & Innovation

Advances in agentic AI and open protocols are reshaping enterprise ecosystems and security operations worldwide.

**Naver recently introduced its Korean large language model, HyperCLOVA X, and plans to integrate the Model Context Protocol (MCP) developed by US AI company Anthropic by the end of 2025.**
MCP, an open standard for linking AI agents and services, will enable HyperCLOVA X–based agents to connect with external tools and platforms. By adopting MCP, Naver aims to establish the protocol as a standard in its AI developments and expand the capabilities of its agents beyond in-house applications.

**To support vertical markets in commerce, location-based services and mobility, Naver will build an integrated AI agent ecosystem and introduce an AI tab within its search services to facilitate seamless interactions across platforms.**
This approach will intensify competition in South Korea’s AI agent landscape, pitting Naver against domestic platforms such as Kakao, Emro, SketterX and F&F, all of which are actively adopting MCP technology.

**Kakao has already launched a beta version of its open MCP platform, PlayMCP, and plans to roll out the official MCP Gateway in November 2025.**
Next year, the company will introduce PlayTools and Tool Builder to enhance MCP service accessibility within KakaoTalk, reinforcing its position in the AI agent market and directly challenging Naver’s forthcoming ecosystem.

**International technology firms are also advancing MCP support.**
In October 2025, OpenAI added MCP capability to ChatGPT developer mode, enabling developers to build interconnected AI tools. Since April 2025, Google has integrated MCP into its Gemini platform and SDK, and released an MCP server to streamline access to public data. These moves reflect a global push toward interoperable AI agent ecosystems.

**Microsoft has transformed its Sentinel security platform into an AI-centered ecosystem by integrating a data lake, an MCP server and Graph visualization tools.**
This environment allows AI agents to analyze extensive security data, map organizational assets and attacker movements, and anticipate threats proactively. The expanded ecosystem includes a Security Store offering more than 57 agents and the Security Copilot tool for building no-code AI agents, along with compliance features that ensure data sovereignty and adherence to global regulations.

Monitored Intelligence for South Korea - Oct. 2, 2025


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President Lee slams prosecutors for abusing right to appeal acquittals

Joongang Ilbo | English | News | Oct. 2, 2025 | Political Scandal or Corruption

President Lee Jae Myung sharply criticized prosecutors on September 30, 2025, for abusing their right to appeal acquittals, arguing that this practice harms innocent defendants and wastes public resources. He questioned why prosecutors persist in appealing cases after lower courts have acquitted defendants, highlighting the financial and emotional toll on those wrongfully targeted. Lee emphasized the principle of the presumption of innocence, asserting that doubts should favor defendants and urging Justice Minister Jung Sung-ho to pursue reforms to curb prosecutors’ repeated appeals.

Justice Minister Jung acknowledged that prosecutors have traditionally operated oppositely by frequently appealing acquittals, although he noted a recent decline in this practice and said he reviews cases daily. Jung proposed institutional reforms, including revising the Criminal Procedure Act to restrict appeals only to cases involving clear legal issues or exceptional circumstances. He also suggested internal rule changes within the Supreme Prosecutors’ Office to limit appeal cases.

Lee further accused prosecutors of selectively indicting political opponents while protecting allies, a point that some ruling party members linked to broader criminal justice reforms and plans to abolish the prosecution service. The opposition People Power Party condemned Lee’s remarks as an attempt to protect himself amid his own legal challenges, citing his mixed acquittal and conviction record.

In the same Cabinet meeting, lawmakers passed a Government Organization Act revision to abolish the prosecution service within a year, replacing it with a new indictment office under the Ministry of Justice and a Serious Crimes Investigation Agency handling investigations. Additional government restructuring included changes to telecommunications oversight, the splitting of the Ministry of Economy and Finance into two separate ministries, and reforms to the Ministry of Gender Equality and Family and the Ministry of Environment. A new law was also passed to allow prosecution of witnesses committing perjury before parliamentary committees even after sessions end. All approved bills will be promulgated on October 1, 2025, and take immediate effect.

김동환 포티투마루 "공공 AX 혁신 시작... 초거대 AI 활용 확산"

Kim Dong-hwan Potitumaru Begins Public AX Innovation... Expanding Use of Super Large AI

ZD Net Korea | Local Language | News | Oct. 2, 2025 | UndeterminedTech Development/Adoption

Kim Dong-hwan, CEO of Potitumaru (42MARU), presented at the AI Festa 2025 in Seoul, focusing on "Public AX Innovation in the Agentic AI Era." The event, hosted by the Ministry of Science and ICT and organized by the Korea Artificial Intelligence Software Industry Association, took place from September 30 to October 2 and showcased advanced AI convergence technologies to industry and public stakeholders. Kim introduced Potitumaru's flagship AI product and detailed plans for implementing public AX systems using super-large AI models across government ministries and agencies.

Potitumaru specializes in developing a Deep Semantic QA platform that accurately understands user queries to provide precise answers from vast unstructured data. Kim is an AI expert recognized internationally, notably tying for first place with Google's AI team in the SQuAD 2.0 machine reading comprehension challenge. He is also advancing cloud SaaS-based, domain-specific super-large language models aimed at entering the global enterprise market. Kim highlighted that government-level “public AX” initiatives aim to deploy large language models (LLMs) on public platforms for conversational services akin to ChatGPT, with pilot services running through November and official launch planned for 2026.

Kim emphasized Potitumaru’s approach of operating smaller LLMs alongside larger models to address hallucination, security, and cost concerns, with plans to incorporate national foundation models and private models validated for public platform use. The company enables conversational AI interfaces and API integration for various agencies. Busan City was cited as a practical case, utilizing smaller LLMs for policy planning, civil servant assistance, and municipal monitoring, with plans to expand LLM applications publicly next year.

He concluded by noting the spread of super-large AI across central ministries, local governments, defense industries, and citizen services. Government preparations are accelerating, aiming to cultivate AI-native capabilities, enhance productivity, and improve global competitiveness through diverse AI adoption cases in the public sector.

"이번이 마지막 기회" 당국, 석화 구조조정 압박

This is the Last Chance Authorities Pressure Petrochemical Restructuring

Maekyung | Local Language | News | Oct. 2, 2025 | Regulation

The petrochemical industry is undergoing full-scale restructuring due to a crisis caused by oversupply. Creditor financial institutions have agreed to provide financial support—including maturity extensions and new funding—only to companies that submit detailed plans to reduce supply through measures such as plant consolidation. The government is pressuring firms to quickly submit these self-help plans, emphasizing that without concrete reduction targets, financial aid will not be granted.

An agreement signed by 17 banks, four policy finance institutions, the Financial Services Commission, and the Financial Supervisory Service establishes a framework for liquidity support. This support targets otherwise healthy companies without defaults that commit to supply reductions. The creditor group's leverage is significant, given loans to 11 major petrochemical firms totaled 32.8 trillion won in the first half of 2025. The banking sector has also requested government relaxation of asset soundness standards for loans under maturity extensions to minimize loan-loss provisioning.

The government supports this request and has expressed dissatisfaction with the industry's slow progress on restructuring. Vice Chairman Kwon Dae-young of the Financial Services Commission criticized the lack of concrete reduction plans and warned this is the industry's "last chance" to comply. The government demands voluntary cuts in naphtha cracking facility capacity by 2.7-3.7 million tonnes within the year, urging companies to promptly submit clear restructuring blueprints.

The petrochemical industry argues the creditor group's conditions are too strict, and negotiations over restructuring intensity are ongoing. Companies acknowledge the difficulty of identifying effective self-help measures under current conditions. Meanwhile, the government plans additional support mechanisms, including a 2-trillion-won low-interest loan program via the Korea Development Bank and potential funding through a separate policy finance account or a 1-trillion-won restructuring fund managed by the Korea Asset Management Corporation.

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