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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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"내년 매출에 직격", IT총판들 긴장 이유는?…HPE·아루바·주니퍼, 단일 총판 체계 변경

Direct impact on next year's sales, why are IT distributors tense?… HPE, Aruba, Juniper change to single distributor system

Digital Daily | Local Language | News | Dec. 12, 2025 | Supply Chain Issues

Hewlett Packard Enterprise (HPE) plans to consolidate its domestic distribution network for Aruba, Juniper Networks, and HPE servers into a single integrated distributor system starting early next year. Presently, these product lines are managed by separate distributors, but HPE aims to reduce over ten distributors down to approximately 2–4 companies. The process involves a Request for Information (RFI) beginning in January 2026, with final distributor selections expected by April 2026.

This integration is driven by HPE’s global policy to limit the number of distributors per region and reflects the strategic alignment of its expanded network portfolio following acquisitions of Aruba and Juniper. By combining wireless networking strengths from Aruba and wired/data center capabilities of Juniper, HPE intends to offer unified proposals and support for AI-based network operations and edge-cloud environments. The restructuring is expected to significantly impact the distributor ecosystem, intensifying competition as distributors with varying portfolios vie for inclusion.

Industry groups like ITCEN and SNet, which currently handle multiple product lines, are viewed as having an advantage due to their broad portfolios, as HPE is likely to consider past performance and product experience in its evaluations. While the primary focus is on an integrated distribution framework, there is some indication that certain single-product-line distributors might be allowed to continue under exceptional circumstances, aligning with the broader network portfolio reorganization emphasizing AI-driven network competitiveness.

KFTC AMENDS CONSUMER PROTECTION GUIDELINES IN E-COMMERCE TRANSACTIONS

Bae, Kim & Lee LLC | English | AcademicThink | Dec. 12, 2025 | Regulation

The Korea Fair Trade Commission (KFTC) has amended its Consumer Protection Guidelines in Electronic Commerce Transactions, effective October 24, 2025. The amendments establish detailed standards and recommendations concerning regulations on six types of online dark patterns under the Act on Consumer Protection in Electronic Commerce. These include hidden renewal, drip pricing, pre-selected options, false hierarchy structures, obstructing cancellation or withdrawal, and nagging.

The amended Guidelines clarify that businesses must obtain explicit consumer consent at least 30 days prior to increasing recurring payments or converting free trials to paid services. They define the initial price display page and the total mandatory price, which must include all compulsory fees but exclude optional or circumstance-specific costs. The Guidelines provide concrete examples of prohibited practices relating to pre-selected options, false hierarchy, obstructing cancellation, and nagging to enhance clarity and market predictability.

Recommendations within the Guidelines advise businesses to clearly disclose pricing conditions, notify consumers of possible additional charges from optional selections, ensure consumers can decline these options, and prominently display cancellation or withdrawal buttons. These changes signal the KFTC's intent to strengthen enforcement against dark patterns, urging businesses to review and comply with the updated regulations to avoid violations.

Uprooting evil or religious oppression? President Lee's undeclared war on Unification Church raises thorny legal questions.

Joongang Ilbo | English | News | Dec. 12, 2025 | Communal and Religious Strife

President Lee Jae Myung has declared that any entity, including religious organizations, should be dissolved if found guilty of crimes or acts harmful to society. This statement is widely seen as an indirect targeting of the Unification Church amid allegations of the church's political interference, raising complex legal questions about the dissolution of religious foundations under Korean law. Lee emphasized that corporate bodies, including religious groups, can be legally dissolved if they commit serious violations, and instructed a strict investigation into illegal ties between religious groups and politicians regardless of political affiliation.

The remarks come amid a special prosecutor’s investigation into the Unification Church’s illegal political donations, including a 100 million won payment to a People Power Party (PPP) lawmaker, Rep. Kweon Seong-dong. The probe uncovered attempts by the church to influence PPP lawmakers and mass membership drives supporting a specific candidate. Allegations have also surfaced of the church’s financial links to the Democratic Party (DP), including the revelation that the church allegedly gave cash and gifts to two DP lawmakers. This has heightened political tensions, with both parties accusing each other of collusion and deflecting blame.

President Lee’s firm stance echoes his past confrontations with religious groups, such as the 2020 Shincheonji Church incident, suggesting a broader aim to enforce the separation of church and state and to challenge the longstanding alliances between conservative Protestant groups and the PPP. However, the prospect of actual dissolution proceedings remains uncertain given Korea’s legal framework, which involves administrative rather than judicial dissolution orders, likely leading to contentious legal battles and political fallout.

Lee also reiterated his commitment to reform despite inevitable resistance, aligning with ongoing judicial reform efforts pushed by his Democratic Party, including controversial bills aimed at prosecuting former President Yoon. His approach has drawn fierce criticism from the PPP, which accuses him of political threats and diversion tactics amid unfolding scandals. The situation continues to evolve amid heightened political and legal scrutiny over the influence of religious organizations in Korean politics.

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