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AI Sector Volatility and Regulatory Shifts Reshape Global Markets and Corporate Strategy
Nov. 13, 2025 | Firms

Renewed volatility in equity markets and evolving AI regulations are shaping investment strategies and corporate policies worldwide.

**In the US, equity markets opened mixed on November 11, 2025, as SoftBank’s sale of its entire $5.83 billion stake in Nvidia triggered renewed AI sector jitters, sending Nvidia shares down 2.2%.**
The Nasdaq fell 0.3% and the S&P 500 dipped 0.1%, while the Dow Jones Industrial Average rose 0.2%. Investors balanced these concerns with optimism about the imminent end of the 42-day government shutdown, although the Treasury market remained closed for Veterans Day. In contrast, European markets rose at the open, and Asian equities delivered mixed performance.

**Pure-play AI infrastructure firms experienced notable stock moves.**
CoreWeave shares dropped 8.4% after issuing an annual revenue forecast below analyst expectations, and quantum computing specialist Rigetti Computing slid 3.8% on third-quarter revenue that missed estimates. By contrast, Rocket Lab narrowed its quarterly loss and reported $155 million in revenue, which propelled its shares up 8%. Paramount Skydance also jumped nearly 5% after announcing cost-cutting measures and planned streaming price increases.

**Meanwhile, in South Korea, authorities delayed the public notice for the Enforcement Decree of the AI Basic Act to revise safety and trust obligations more thoroughly.**
The Ministry of Science and ICT plans to require stronger labeling for AI-generated outputs so human users can identify them. Lawmakers from both ruling and opposition parties have called for greater transparency, ethical standards and safety measures. With full enforcement scheduled for January 22, 2026, industry stakeholders—especially foreign firms—are concerned about the shortened preparation window. The ministry aims to issue the public notice next week, collect public comments through December and largely finalize the decree according to the September draft, while providing at least a one-year guidance period before imposing fines.

**Cloudera Korea has shifted its strategic focus from data management to AI, targeting double-digit growth in the AI sector by 2026 and positioning itself as an “end-to-end AI platform.” The company emphasizes customizing AI transformations to customer environments rather than pursuing a purely cloud-centric model.**
Its AI-ready data platform supports data pipelines, governance, model training and inference across both cloud and on-premises infrastructures. Cloudera has expanded partnerships from four to include Dell Technologies, AWS, NVIDIA and other hardware and AI model providers. It also introduced “Cloudera Data Services 2.0,” a unified platform currently in private preview, and promotes an enterprise AI architecture that could reduce total cost of ownership by up to 75% compared with public cloud alternatives.

**Investor Michael Burry accused major US cloud and AI infrastructure firms of extending depreciation schedules for high-cost assets—such as Nvidia chips and servers—beyond their actual two- to three-year replacement cycles.**
He estimates these underreported depreciation charges could total roughly $176 billion between 2026 and 2028. Burry singled out Oracle and Meta, suggesting their 2028 earnings might be overstated by 27% and 21%, respectively. Although GAAP allows firms broad discretion in setting depreciation lives, he argues this practice inflates short-term net income without boosting cash flow. Warning of a late-1990s-style AI investment bubble, Burry disclosed substantial put options on Nvidia and Palantir valued at $187 million and $912 million, and plans to share further details on November 25.
AI Innovation Accelerates Across South Korea’s Tech Sector
Nov. 13, 2025 | Technology & Innovation

South Korean technology companies are accelerating their AI ventures through innovative chatbots, collaborative forums, government-led foundation models, and strategic partnerships.

**Seoul-based Scatter Lab launched Zeta in open beta in April 2023 with support from SK Telecom.**
By October, the chatbot had recorded 73.62 million cumulative hours of user engagement, surpassing ChatGPT’s 48.28 million hours. The app, powered by proprietary small language models, lets users create customizable AI characters and enjoy interactive storytelling. It has attracted 2 million users worldwide and exceeded 2.3 billion monthly conversational exchanges. In the second quarter of 2025, Zeta generated 5.2 billion won in revenue and 900 million won in operating profit at a 17 percent margin. Nearly 90 percent of its audience consists of teenagers and people in their twenties; by late May 2025, over 3.9 million users had created more than 190,000 unique characters. After facing criticism over inappropriate content, Scatter Lab introduced age verification and an adult-only unlimited mode in August 2025. The company now aims to expand into Japan and English-speaking markets with a goal of over 100 million global users.

**Meanwhile, Kakao launched its Daily AI Forum in collaboration with 13 experts from industry and academia, convening regular presentations and discussions on AI technology trends, service innovations, and implementation challenges.**
Participants include members of the IT Communication Research Institute, CEOs of AI-focused startups, and Kakao’s own AI leaders. At the inaugural session on November 10, 2025, speakers examined Agentic AI and the evolution of business and organizational structures in the AI era, and Kakao outlined its shift toward an Agentic AI platform strategy. The forum bridges real-world insights with Kakao’s technology roadmap, exploring practical plans for AI development and its societal impact.

**Under the government-backed Independent AI Foundation Model Project, the South Korean government, the National Assembly, and industry stakeholders are building an autonomous AI ecosystem to drive innovation in manufacturing, defense, and cultural sectors.**
At a forum on November 12, 2025, lawmakers, major ICT firms, and academics discussed strategies for broad AI adoption. NC AI’s consortium of 14 companies has developed a 3D foundation model that integrates text and 3D data via Unreal Engine, targeting industry-specific applications such as predictive maintenance, digital twin simulations for defense, and cultural content localization. Eighteen industry groups and 40 companies are contributing to open research and model development, emphasizing explainable AI and physical AI capable of adapting to variable environments. Domestic AI semiconductor firms, including Rebellion and Mobilint, stressed the strategic importance of integrated AI semiconductors, infrastructure, and software to ensure sovereignty and cost-effective, high-performance systems. The Ministry of Science and ICT reported that development by five consortia is roughly 60 percent complete, with plans to narrow the field to two teams by 2027 and secure GPU supply and talent through continued industry dialogue.

**Hancom’s third-quarter 2025 results reflect its transformation into an AI-centered technology firm.**
Consolidated revenue rose 18.1 percent year-on-year to 84 billion won, and operating profit increased 45.7 percent to 12.3 billion won. On a standalone basis, revenue climbed 17.2 percent to 44 billion won, and operating profit margin held at 27.8 percent despite strategic R&D and rebranding investments. The company drove growth with AI product lines such as Hancom Assistant and Hancompedia, its cloud SaaS and web office services, and major public sector contracts including the National Assembly Big Data Platform and intelligent work systems for government agencies. As a key partner in the Independent AI Foundation Model Project led by LG AI Research, Hancom is advancing on-device AI solutions by integrating its Assistant Edge technology with Intel processors and pursuing international expansion through localized AI offerings, notably in financial technology via a joint venture with Japan’s Kiraboshi Financial Group and AI-based facial recognition in collaboration with FacePhi.

Monitored Intelligence for South Korea - Nov. 14, 2025


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Former chief of South Korea’s spy agency arrested in insurrection probe

Hankyoreh - E | English | News | Nov. 14, 2025 | Political Scandal or Corruption

The former chief of South Korea’s National Intelligence Service (NIS), Cho Tae-yong, was arrested on suspicion of dereliction of duty related to the martial law crisis on December 3, 2024. His arrest is notable as the first by the special counsel team investigating the crisis involving someone not serving as a Cabinet member at that time. The arrest warrant was issued by the Seoul Central District Court due to concerns over potential evidence destruction.

The special counsel team accused Cho of failing to report the planned martial law declaration to the National Assembly Intelligence Committee, despite being aware of it, and of not notifying the Assembly after receiving an illegal martial law plan, which included mobilization of troops to arrest key political figures. They argued Cho neglected his duty in an emergency and did not maintain the required political neutrality. The NIS reportedly provided selective evidence during former President Yoon Suk-yeol’s impeachment proceedings, favoring one party over another.

Additional allegations against Cho include perjury before the Constitutional Court and National Assembly, and conspiracy to destroy evidence through deletion of encrypted records, involving the former head of the Presidential Security Service. The special counsel supported their arrest request with extensive documentation, including a detailed legal opinion and presentation.

Cho’s defense denied prior knowledge of the martial law declaration and argued the situation's urgency made reporting impractical. Cho expressed regret over the developments, referencing his previous public service roles. Following Cho’s arrest, the special counsel will focus on arrest warrant reviews for People Power Party lawmaker Choo Kyung-ho and former Minister of Justice Park Sung-jae, both implicated in the insurrection probe, with Park’s review scheduled for November 14 and Choo’s pending an arrest ratification vote later in the month.

이재명 정부 AI 대전환에 지방정부도 '속도전'

Lee Jae-myung Government's AI Transformation Accelerates Local Governments' Response

Digital Daily | Local Language | News | Nov. 14, 2025 | UndeterminedTech Development/Adoption

President Lee Jae-myung's government is advancing the "AI Transformation (AX)" policy by accelerating AI integration across local governments including Seoul, Gyeonggi Province, Busan, and Sejong Special Self-Governing City. These metropolitan areas have established dedicated AI organizations and are fostering public-private cooperation ecosystems to embed AI into local policy, industry, and administration.

Seoul is implementing AI policies down to the district level, with Gangseo District declaring itself an "AI-specialized city" and enacting a "Basic Ordinance on Artificial Intelligence" to institutionalize AI adoption across education, healthcare, welfare, and industry. Gyeonggi Province created the "Gyeonggi-do Artificial Intelligence Committee" with subcommittees for policy, ethics, and innovation, focusing on AI registration systems, administrative automation, and ethical standards to model an "AI administration" across sectors.

Busan is pursuing an industry-focused AI city model through the "WAVE Project," valued at 1 trillion won, aimed at integrating AI with key industries such as shipping, ports, and defense. The project plans to begin in 2027 following a feasibility study. Sejong City, as an administrative hub, formed an "AI Innovation Task Force" to enhance public services with generative AI and automation, operating specialized subcommittees aligned with the national AX policy.

The AI transformation in local governments has moved beyond experimental stages to become institutionalized, incorporating AI efforts across policy, industry, and administration simultaneously. Despite progress, challenges remain in evaluating performance, establishing ethical standards, and addressing regional disparities as the projects continue to expand.

Expert calls South Korea's nuclear-powered sub acquisition 'possible' but 'long road'

Joongang Ilbo | English | News | Nov. 14, 2025 | Geopolitical Conflict and Disputes

South Korea's efforts to acquire nuclear-powered submarines are deemed "possible" but face significant challenges, according to James Kim, director of the Korea Program at the Stimson Center. These challenges include U.S. licensing and certification hurdles, particularly from the Nuclear Regulatory Commission and local authorities in Philadelphia, where the submarines are planned to be constructed. The presence of nuclear materials near a major metropolitan area adds complexity to the approval process.

Additional obstacles involve South Korea's need to develop supply chains and recruit engineers experienced in nuclear submarine construction, an area new to its shipbuilding industry. Geopolitical issues also come into play, especially concerns over nuclear proliferation and reactions from China, as well as involvement from the International Atomic Energy Agency (IAEA).

The push for nuclear-powered submarines aligns with South Korea's long-standing goal to enhance its independent military capabilities amid growing nuclear threats from North Korea. This move followed former U.S. President Donald Trump's approval to build the submarine at a U.S. shipyard, although South Korea prefers domestic construction. The situation remains complex due to current agreements limiting nuclear energy cooperation between the U.S. and South Korea to peaceful uses, not military applications.

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