South Korea

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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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Exclusive: USFK Reclaims Osan Base Access for Security

Chosun Ilbo | English | News | Dec. 12, 2025 | Geopolitical Conflict and Disputes

The US Forces Korea (USFK) is reclaiming control over access to the South Korean military’s entry points at Osan Air Base in Pyeongtaek to enhance security. This decision follows an incident on July 21 when the insurrection special counsel team, led by Special Counsel Cho Eun-suk, entered the base without notifying USFK and conducted a search and seizure of the Air Force’s 1st Central Air Defense Control Center (MCRC) while investigating suspected North Korean drone activity.

Starting mid-January, the USFK will fully manage all three external gates at Osan Air Base, including overseeing related computer records. Identity verification for active-duty soldiers will be exclusively done using the US military-issued Defense Biometric Identification System (DBIDS) card, and South Korean government-issued IDs will no longer be accepted for base entry.

Under the Status of Forces Agreement (SOFA), the US has the authority to manage and secure bases provided by South Korea. While the USFK historically manages base access, Osan Air Base has been an exception, with South Korean troops controlling one of the three gates jointly with USFK. The dual access system previously allowed South Korean government IDs at one gate, but this will end with USFK’s full control.

USFK perceived the dual system as a security weakness, particularly since it did not detect the special counsel team’s unnotified entry. USFK Vice Commander David Iverson sent a letter of protest to South Korea's Ministry of Foreign Affairs in October, alleging a SOFA violation. As of nearly two months later, the ministry has not responded. The USFK’s reclamation of gate control is viewed as a security response to the ministry's silence.

The insurrection special counsel team maintains its entry was authorized by South Korean troops, who provided permits and oversight, asserting that there was no SOFA violation in their actions at Osan Air Base.

S. Korea confirms 2 additional highly contagious bird flu cases

Yonhap | English | News | Dec. 12, 2025 | Epidemics and Pandemics

South Korea reported two additional cases of highly pathogenic avian influenza on December 10, 2025, bringing the total number of infections at poultry farms this season to 10. The new infections were confirmed at a layer chicken farm in Cheonan, South Chungcheong Province, and another in Anseong, Gyeonggi Province.

Agricultural authorities are implementing follow-up measures including entry controls, culling of affected poultry, and epidemiological investigations. The agriculture ministry has called on farms to strengthen quarantine measures to prevent further spread of the disease, particularly in the Gyeonggi and South Chungcheong provinces where multiple cases have been reported this season.

Disinfection efforts are underway near affected farms, including a duck farm in Yeongam County in the southwest, following an outbreak there on December 9, 2025.

S. Korea's economy to grow 2.3 pct next year: S&ampP

Yonhap | English | News | Dec. 12, 2025 | UndeterminedEconomic Growth

S&P Global Ratings projected that South Korea's economy will grow by 2.3 percent in 2026, indicating that the most challenging period for the country is likely over. The credit agency noted that overall credit conditions will remain difficult but expects modest improvement compared to 2025, based on more favorable global economic conditions and eased tariff pressures following a trade deal between South Korea and the United States in October 2025.

The agency highlighted that performance across key industries will vary, with the semiconductor sector expected to show strong results, while chemical companies may struggle due to oversupply and slower-than-anticipated restructuring efforts. S&P also indicated that changes in U.S. policies could impact South Korean firms, and ongoing U.S.-China trade tensions might create new business opportunities for South Korean companies.

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