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LG Advances Data Center Cooling and AI Infrastructure with Strategic Expansion
July 10, 2025 | Technology & Innovation

LG Electronics is aggressively expanding its semiconductor, AI server, and data center businesses by leveraging cutting-edge HVAC and cooling technologies.

**LG has set a strategic objective to grow its heating, ventilation, and air conditioning business to 20 trillion won ($14.6 billion) in annual sales by 2030, shifting its focus from residential and commercial markets to industrial and infrastructure sectors, most notably hyperscale data centers.**
In the short term, the company aims to boost its chiller business revenue to 1 trillion won within two years. HVAC has been designated one of LG’s seven key technologies, and the company is intensifying efforts to secure contracts for liquid-cooling solutions critical to modern data center operations. LG plans to triple its order intake year-on-year for data center HVAC solutions and expand the application of ultralarge chillers in this segment.

**On the technology front, LG is developing two principal cooling solutions: liquid cooling that delivers coolant directly to semiconductor chips, and air cooling that lowers internal temperatures through advanced chillers.**
The company has introduced a new Core Tech system to maintain stable operation if key sensors fail. Direct-to-chip (D2C) cooling technologies and new pre-cooling chillers for resource networks and data sensors are currently at proof-of-concept stage. LG expects to commercialize its liquid-cooling solutions by 2025, with full-scale supply beginning next year.

**LG is also pursuing partnerships and certifications to deepen its role in the AI data center ecosystem.**
It is in discussions with US chipmaker Nvidia to supply coolant distribution units for AI servers and is undergoing certification to enter Nvidia’s server supply ecosystem. The company is exploring collaborations with firms such as Microsoft to reinforce its footprint in next-generation data center infrastructure. Liquid cooling remains a priority because it can manage the high heat output—often exceeding 90 degrees C—from AI semiconductor chips, which traditional air cooling cannot adequately address.

**To support its expansion, LG is building localized value chains that encompass R&D, production, sales, and maintenance.**
The company plans to increase the share of revenue from non-hardware services—such as subscriptions and maintenance—to 20 percent. It has introduced a subscription-based B2B model that combines product sales with ongoing maintenance services to enhance reliability and predictability for mission-critical systems like data centers. The specialized installation, maintenance, and engineering services required for advanced HVAC solutions give LG a competitive edge over lower-cost Chinese manufacturers.

**LG has supplemented its organic growth strategy with targeted acquisitions.**
Its recent 100 percent purchase of Norwegian hot water solutions firm OSO Hotwater marks LG’s entry into the European market and expands its related technology portfolio. The company is considering further acquisitions to integrate heat pump and hot water technologies and strengthen its HVAC offerings for the AI era.

**Global expansion efforts include establishing an HVAC product development unit in India and increasing production capacity with a 13th manufacturing base in Sri City, India, which will add the capability to produce an additional 1.5 million air conditioners and 2 million compressors annually.**
LG currently operates 12 production facilities worldwide and is enhancing localized strategies and value chains across the Global South to address regional HVAC requirements with customized solutions.

**Market forecasts underpin LG’s ambitions: the global chiller market is expected to reach $12 billion by 2027, and demand for AI data center cooling is projected to double from 17 trillion won in 2023 to 34 trillion won by 2028.**
To achieve its 2030 sales target, LG aims to grow at twice the average market rate, leveraging its expanded technological portfolio and strategic partnerships to capture a larger share of the rapidly evolving data center cooling market.






### IMPACT ANALYSIS
**From this Development, various impacts could cascade through the system, to a lesser or greater extent, depending on the severity and criticality of the shocks.**









































Domain Causal Chain Possible Outcome
Infrastructure & Urbanization (Strategic pivot to hyperscale data center HVAC market ↑ → Infrastructure-quality index ↑ → Foreign-owned green‐field project count ↑ → FDI net inflow (% GDP) ↑) Improved industrial-grade cooling infrastructure attracts foreign green-field investments and raises FDI inflows as a share of GDP.
Technology & Innovation (Rapid development of direct‐to‐chip liquid cooling ↑ → Cloud‐computing cost benchmark ↓ → AI inference cost index ↓ → AI adoption GDP uplift ↑) Lower AI inference costs drive broader AI adoption, delivering measurable GDP gains through enhanced productivity and innovation.
Technology & Innovation (Entry into Nvidia AI server ecosystem ↑ → Semiconductor fab utilisation rate ↑ → Domestic AI compute capacity (petaflop‐days) ↑ → AI adoption GDP uplift ↑) Stronger fab utilization and expanded domestic AI compute capacity underpin wider AI deployment, boosting GDP through automation and innovation.
Firms (Shift to service‐based subscription model ↑ → SME digital‐tool adoption index ↑ → Digital‐technology adoption rate ↑ → Labour productivity growth ↑) Service-based subscriptions accelerate digital tool adoption among SMEs, enhancing operational efficiency and driving labor productivity growth.
Technology & Innovation (Enhanced hyperscale data center HVAC solutions ↑ → Intangible‐asset investment ratio ↑ → Patent‐grant growth rate ↑ → Patent‐to‐product conversion rate ↑) Higher intangible-asset investments lead to more cooling technology patents and faster conversion of these patents into market-ready products.
Competitiveness (Entry into global AI cooling market ↑ → Trade‐openness & preferential access ↑ → High‐tech export volume surprise ↑ → High‐value‐added export share ↑) Expanded global presence and better market access boost high-tech export volumes and increase the share of high-value-added cooling products.




### BOTTOM LINE

- LG’s pivot toward hyperscale data center cooling solutions enhances industrial‐grade infrastructure quality, which in turn attracts foreign greenfield investments and drives up FDI net inflows as a percentage of GDP.

- The accelerated rollout of direct‐to‐chip liquid‐cooling technology will lower operational energy costs in hyperscale facilities, reducing cloud‐computing and AI inference expense benchmarks and thereby broadening AI deployment to boost economic output.

- Securing a place in Nvidia’s AI server ecosystem increases demand for advanced coolant distribution units, ramping up semiconductor fab utilization and expanding domestic AI compute capacity, which enables deeper integration of AI across industries.

- Adopting a subscription‐based model for HVAC hardware plus maintenance makes advanced cooling more accessible to SMEs, spurring uptake of integrated digital monitoring tools, raising overall digital‐technology adoption rates and driving labor productivity gains.

- Intensified R&D investment in next‐generation liquid and air‐cooling systems elevates LG’s intangible‐asset investment ratio, fueling a rise in cooling‐technology patents and accelerating the conversion of those patents into market‐ready products.

- Strategic acquisitions and global production expansions—exemplified by the OSO Hotwater takeover and new Indian manufacturing bases—broaden LG’s trade‐openness and preferential access, leading to export volumes that exceed expectations and a higher share of high‐value‐added cooling exports.

- Building localized value chains for R&D, production, sales and maintenance diversifies supply‐chain risk, tailors solutions to regional HVAC requirements and fortifies LG’s competitive edge against lower‐cost Chinese rivals.

- Transitioning to non‐hardware revenue streams—targeting 20 percent of total sales via subscriptions and maintenance—strengthens recurring revenue predictability and deepens customer relationships in mission‐critical data center environments.
South Korea Accelerates Nationwide AI Integration Across Public and Private Sectors
July 10, 2025 | Technology & Innovation

South Korea has accelerated its adoption of artificial intelligence across public institutions, the private sector, and government agencies to drive efficiency and global competitiveness.


Since 2024, public institutions in South Korea have rapidly integrated AI systems to automate tasks historically managed by civil servants. In Ulsan, an AI platform digitized and translated roughly 130,000 pages of historical land and forest ledgers, significantly reducing manual transcription. The Seoul Business Agency deployed its SBA Bot in 2022, cutting accounting and travel reimbursement processing times from 14 minutes to two and handling the workload of 23 employees. Seoul Welfare Foundation installed AI-enabled sensors to monitor elderly residents living alone, triggering alerts when inactivity suggests an emergency. The Seoul Digital Sex Crime Victim Support Center uses AI to identify illegal sexual content online, boosting takedown rates from 2,509 cases in 2022 to 14,256 in 2024. In agriculture, Gyeongsangnam-do Province piloted AI-driven farrowing prediction systems on pig farms to lower piglet mortality.

**By the end of 2023, 243 of 401 national public institutions had adopted at least one AI application, according to the Ministry of Science and ICT.**
Despite this progress, deployments have encountered challenges. Seoul’s AI chatbot, launched via the Seoul Data Hub in January 2025, delivered inaccurate responses due to limited training data. Skeptical civil servants often cross-verify machine-generated reports manually. Experts warn against rapid, unvetted rollouts, citing past high-profile failures such as metaverse projects, and urge clear guidelines and thorough case studies before scaling further.

**On July 8, 2025, Vice Minister Ryu Jae-myung of the Ministry of Science and ICT declared AI a top national priority essential to South Korea’s future industrial economy.**
During his first policy site visit since his appointment, he met with the Korea Artificial Intelligence Software Industry Association (KOSA) and announced plans to visit AI firms, academic institutions, and research centers on a weekly basis. Ryu pointed to challenges in capital availability and talent competition and called for stronger collaboration between industry and government to secure a position among the world’s top three AI powers. He said these field engagements would inform policy adjustments and drive the implementation of national AI agendas.

**At the KOSA meeting, leaders from AI modeling, cloud computing, and semiconductor sectors outlined policy directions focused on sovereign AI development, global technological leadership, and expansion into international markets, particularly Southeast Asia and the Middle East.**
They emphasized the importance of moving beyond language-model capabilities to build a broader agent ecosystem and improve overseas market entry for domestic AI semiconductors. KOSA Chairman Cho Jun-hee affirmed the private sector’s commitment to elevating South Korea’s AI competitiveness in line with government initiatives and warned of potential crises without prompt, decisive action.

Monitored Intelligence for South Korea - July 11, 2025


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Behind the Wheel of Change: North Korea’s Car Culture and the Politics of Movement

38 North | English | AcademicThink | July 11, 2025 | North Korea

In spring 2025, North Korea's Amisan Automotive Technology Service Center was unveiled by Kim Jong Un as a specialized comprehensive service base, symbolizing more than urban transportation improvements. The transformed facility, formerly the Hwasong Vehicle Maintenance Center, anchors a state-controlled car rental system that involves multiple government bodies including the Central Committee's Economic Department and the Ministry of State Security. This system monetizes mobility through state-run enterprises, generating foreign currency, while enabling limited personal vehicle access for wealthy individuals and government officials under strict regulations.

The car rental system introduces new social dynamics in Pyongyang by offering unprecedented, though controlled, personal freedom. It allows select citizens—mainly from the entrepreneurial donju class and wealthy officials—to rent vehicles for private use, with daily fees around $100 and tight background checks. This arrangement both sustains state revenue and reinforces social control, restricting broader population access. It also enables businesspeople to gain competitive advantages through faster transportation and fosters lifestyle changes, such as young couples using cars for leisure and women quietly defying traditional gender roles by obtaining drivers licenses and starting private taxi businesses.

Despite rising interest in automobiles, private vehicle ownership remains limited by stringent legal and bureaucratic hurdles requiring proof of state-approved foreign currency income. Even approved car owners face movement restrictions enforced by the regime’s No. 10 security checkpoints, which control inter-provincial travel. To circumvent these barriers, many resort to registering vehicles under enterprises or renting license plates, paying fees to maintain relative freedom of movement. This creates a paradox wherein cars symbolize personal freedom but are tightly controlled by the state.

Drivers licenses have taken on deeper cultural significance in North Korea, representing markers of autonomy within an authoritarian system. Long waiting times for license tests reflect widespread demand for limited personal agency. The surge in car rentals and licenses signals subtle social shifts, particularly as women, youth, and entrepreneurs claim new physical and symbolic spaces through mobility. These incremental changes challenge entrenched hierarchies and highlight everyday struggles for freedoms often overshadowed by the regime's overt human rights violations. The emergence of car culture in North Korea thus reveals complex tensions between state control and individual aspirations, suggesting that small acts of autonomy may form the basis of gradual social transformation.

Demolition of Mt. Kumgang Tourist Area Slowly Drags On

38 North | English | AcademicThink | July 11, 2025 | Geopolitical Conflict and Disputes

Demolition of the Mt. Kumgang Tourist Area in North Korea continues at a slow and unhurried pace, indicating it is not a top national priority. Over the past six months, several small buildings, including the South Korean-owned gas station, have been removed, and demolition of the Kumgang Family Reunion Center is ongoing but gradual. There is no clear indication that Kim Jong Un plans to redevelop the area into a domestic tourist zone at this time.

The Mt. Kumgang Tourist Area was originally developed as a symbol of North-South Korean cooperation in the early 2000s, catering to South Korean tourists through facilities like a golf course, hotels, and commercial buildings. The site closed following a fatal shooting incident in 2008, and political tensions and sanctions have since prevented its reopening. Kim Jong Un visited the area in 2019 and signaled the need for an overhaul, but demolition work since then has been sporadic.

Current efforts focus mainly on the Kumgang Family Reunion Center, a 12-story hotel constructed in 2008 that hosted family reunions between 2009 and 2014. Although previously untouched, demolition preparations began in 2022 with the removal of furnishings, and by July 2025, visible demolition has concentrated on the building’s roof and surroundings.

The Ananti Golf Resort and Spa, once a prominent attraction in the zone, has now been completely razed to its foundation, with the floor plan clearly visible. Nearby accommodation buildings were demolished several years ago. At the port area, the cargo ship moored since October 2024 remains in place but has been moved occasionally. The South Korean-built gas station there was removed in early March 2025.

"피지컬AI+SW가 대한민국 새 먹거리"

Physical AI+Software as South Korea's New Growth Engine

ZD Net Korea | Local Language | News | July 11, 2025 | UndeterminedTech Development/Adoption

The 8th session of the AI G3 Advanced Nation New Technology Strategy Breakfast Forum was held on July 9, 2025, at the National Assembly Members' Office Building in South Korea, focusing on the theme of security and control in AI. Organized by lawmakers Jung Dong-young and Choi Hyung-doo, the forum involves about 20 experts from government, academia, industry, and research sectors, aiming to position South Korea as a global leader in AI. The government has recently included the Physical AI leading project in the second supplementary budget, securing 40 billion won this year to promote comprehensive R&D in Physical AI.

Alchera CEO Hwang Young-gyu presented on AI security and control, emphasizing that AI control solutions are vital for safety across multiple industries such as military, traffic, disaster management, and healthcare. Alchera’s AI video recognition technology is widely deployed, with clients numbering over 2,600 and users exceeding 160 million for authentication solutions. The AI-based video control market is projected to grow at an average annual rate of 30.6%, reaching 242 trillion won by 2030, surpassing the semiconductor memory market. Hwang called for centralized AI control under the Ministry of Science and ICT, advocating for expanded subsidies, consolidated departments, and enhanced overseas market expansion.

Professor Jang Young-jae of KAIST discussed Physical AI as a new growth engine, defining it as technology enabling moving intelligence beyond simple information processing. He highlighted the Hyundai Motor factory in Singapore as a model where robots and humans collaborate, aiming to develop AI-based factory design automation technology by 2025. Once developed, this technology will be offered free to South Korean factories to boost competitiveness. Jang stressed the need for standardizing protocols for parts and sensors interfacing with Physical AI, presenting a significant opportunity for South Korea amid global manufacturing shifts.

Participants emphasized the critical need for opening large volumes of video data held by public sectors to the private sector for AI learning, with multiple industry leaders calling for measures to facilitate this data sharing while ensuring privacy and proper security. Regulatory concerns were raised, with calls for freer data use to foster innovation and survival in the AI industry, while balancing societal impact as AI decision-making grows in influence. The forum also highlighted the need for standardization in AI services and improved public sector expertise and control towers to coordinate R&D and industry efforts effectively.

Park Yoon-gyu, President of the National IT Industry Promotion Agency, underscored the importance of teamwork and proposed nationwide expansion of data safe zones linked with AI computing centers to create an AI superhighway. He advocated for appointing AI experts across ministries and reforms in governance terminology and roles to improve cooperation. Song Sang-hoon from the Ministry of Science and ICT announced expansion plans for AI CCTV demonstration projects using local government data, with a public institutions demonstration budget expected to rise to 100 billion won in the near future, supported by relaxed regulations through sandboxes to enable freer use of original video data for AI learning.

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