South Korea

Intelligence for Better Decision Making

AI Transformation Unveiled: 2025 Seminar Highlights Innovations and Regulatory Challenges
March 13, 2025 | Indirect Indicator

The recent 2025 AI Innovation Seminar in Seoul spotlighted the transformative power of artificial intelligence (AI) across various industries.



**Lee Ju-wan emphasized the importance of tangible business outcomes from AI initiatives.**
Lee Ju-wan, chairman of the AX Bridge Committee, emphasized the necessity of achieving tangible business outcomes from AI initiatives. He highlighted the potential for venture companies to harness AI's capabilities for innovation, alongside the committee's efforts to assess AI awareness among startups. The findings from this assessment will be shared with key stakeholders, including the government and media, to enhance understanding and foster broader adoption of AI technologies.

**Kim Dong-hwan highlighted global AI trends and technological advancements.**
Kim Dong-hwan, CEO of FortyTwoMaru, provided insights into global AI trends observed at CES 2025 and MWC 25, noting the rapid adoption driven by Large Language Models (LLMs) and significant investments from companies such as OpenAI. As the high costs associated with LLMs become apparent, there is growing interest in more affordable Small Language Models (SLMs). Kim also discussed the emergence of AI agent systems like Microsoft's 'Copilot' and Google's 'Jarvis,' predicting their increasing role in automating corporate tasks.

**Lim Jeong-geun evaluated AI regulatory approaches in key regions.**
Lim Jeong-geun, CEO of BHSN, evaluated AI regulatory landscapes in the US, EU, and Korea. The US is focusing on deregulation and infrastructure investment, while the EU is developing a risk-based regulatory framework. Korea aims to balance these approaches with a new AI law, although it has faced criticism for its lack of specificity. Lim advocated for policies that strike a balance between fostering innovation and ensuring safe AI development.

**An upcoming exhibition will showcase AI-driven manufacturing innovations.**
Starting March 12, the '2025 Smart Factory & Automation Industry Exhibition' will present AI-powered manufacturing innovations under the theme 'Automation to Autonomy.' The event highlights the transition from traditional automation to AI-driven autonomous manufacturing. With participation from over 500 companies and around 2,200 booths, attendees will have the opportunity to experience cutting-edge technologies such as Hyundai Autoever's AI manufacturing management solution, Schneider Electric's collaborative robots, and Rockwell Automation's autonomous robots. The exhibition will also feature specialized conferences, product seminars, and business matching events to promote collaboration between suppliers and demand companies.

**Lee Cheol-gyu and the Ministry plan to expand AI's industrial impact.**
Lee Cheol-gyu from the Ministry of Trade, Industry, and Energy will engage with AI-driven innovations at the event. The Ministry has launched the 'Industrial AX Expansion Plan' to expand AI's impact across multiple sectors, supporting autonomous manufacturing projects in 12 industries and promoting AI adoption and industry innovation.

**The Ministry of SMEs and Startups is launching a project to support AI adoption in manufacturing.**
Furthermore, the Ministry of SMEs and Startups is initiating the '2025 Regional Specialized Manufacturing Data Activation Project' to stimulate innovation in the manufacturing sector through AI. This initiative aims to support small and medium-sized enterprises in integrating AI and manufacturing data by establishing regional AI-focused manufacturing centers. The project seeks to drive digital transformation, tackle challenges such as the scarcity of AI experts and funding, and nurture an AI-centric ecosystem to enhance industrial competitiveness.

**Partnerships and funding will drive the project to enhance AI integration in SMEs.**
To execute this initiative, three agencies will be chosen from consortia involving local governments, specialized organizations, universities, research institutes, and businesses. These agencies will manage AI centers, identify suitable AI solutions for local firms, and disseminate best practices. The project will receive government funding of up to KRW 6 billion per center over 31 months, supplemented by contributions from local governments and private entities. Applications for the project will be accepted from April 1 to April 14 via the Smart Factory Business Management System.
Samsung's Strategic Advances and Global Developments
March 13, 2025 | Indirect Indicator

**Samsung Electro-Mechanics is on the brink of launching innovative semiconductor material to enhance high-performance production.**
Samsung Electro-Mechanics is nearing the launch of an innovative semiconductor material called glass substrates, which promises to enhance high-performance semiconductor production by enabling ultra-fine line width packaging.



**The company is progressing with its pilot production line for semiconductor materials while collaborating to improve processes.**
The company is in the final stages of equipment inspections for a pilot production line in Sejong, expected to begin operations by March 11, 2025. Under the leadership of President Jang Deok-hyun, the company maintains an aggressive development timeline, with samples set to be showcased within the year. While other major industry players such as Intel, AMD, and SK are investing in similar R&D, Samsung Electro-Mechanics distinguishes itself with its domestic pilot production, a vital step toward commercialization. Collaborating with Corning and YMT, the company aims to integrate plating and cleaning processes into the supply chain, addressing technical challenges and improving quality. However, specific operational timelines and supply chain details remain undisclosed.

**Samsung Electronics invests heavily in research and development to counter global challenges and increase profits.**
Amid global challenges and a decline in memory chip demand, Samsung Electronics is undertaking its largest investment in research and development and facility expansion for 2024, allocating approximately 35 trillion won ($24.09 billion), a 23.5 percent increase from the previous year. Facility investments have reached an unprecedented 53.6 trillion won, up by 500 billion won from the prior year. These efforts are part of Samsung's broader strategy to counteract declining market shares in various sectors. Despite these difficulties, the company reported an annual revenue increase of 16.2 percent to 300.87 trillion won in 2024, marking its second-highest performance after 2022. Net profits soared by 122.5 percent to 34.45 trillion won, with operating income nearly quintupling to 32.72 trillion won.

**Samsung Electronics faces challenges in client acquisition despite advancements in 4nm AI process technology.**
In the realm of high-performance computing, Samsung Electronics has been mass-producing its 4nm SF4X process for AI applications since November. This advanced process includes enhanced back-end-of-line wiring and faster transistors to reduce RC delay, supporting sophisticated packaging technologies such as 2.5D and 3D. Despite these advancements, Samsung has faced challenges in attracting major clients like Qualcomm, NVIDIA, and Apple, leading to a market share decline compared to TSMC's expansion. Nevertheless, with stabilized yields and increasing demand for AI semiconductors, the SF4X process remains integral to Samsung's foundry growth. Notable collaborations include agreements with the US startup Grok and interest from HyperExcel for specialized LLM semiconductors. Additionally, Samsung is pushing forward with GAA technology in its upcoming 3nm processes to enhance performance and power efficiency.

**Han Jong-hee is re-elected as KEA chair, focusing on supply chain and AI technological advancements.**
Han Jong-hee, Vice Chairman and CEO of Samsung Electronics, has been re-elected as chair of the Korea Electronics Association (KEA) for another three-year term as determined at KEA's 49th regular general meeting. Samsung Electronics vice chairs have held this leadership position since 2004, fostering growth in the electronics and IT sectors. Han has underscored the importance of managing global supply chain reorganizations amid US-led protectionist policies and integrating AI technologies. He also oversees Samsung's Device eXperience Division and has been instrumental in advancing QLED and MicroLED TV technologies.

**Samsung strengthens its position in mobile technology standardization under new leadership within 3GPP.**
In the arena of mobile technology standardization, Kim Youn-sun from Samsung Electronics has been elected chair of the Technical Specification Group Radio Access Network (TSG RAN) within the 3GPP, beginning his two-year term in May. TSG RAN plays a pivotal role in standardizing critical wireless technology elements such as the physical layer and protocol issues within the 3GPP framework. Under Kim's leadership, Samsung aims to significantly contribute to the standardization efforts for sixth-generation mobile technology.

**Samsung achieves a legal win against TCL in Germany for trademark infringement on TV branding.**
Samsung Electronics has achieved a legal victory in Germany, obtaining a temporary injunction against TCL over trademark infringement related to the Nxtframe TV brand. The Dusseldorf Regional Court ruled in favor of Samsung, noting a likely consumer confusion with its Frame TV trademark. Consequently, TCL is barred from using the NXTFRAME name for TVs in the EU and has rebranded the model to A300.

**Samsung collaborates with Lotte Chemical on sustainability for its upcoming smartphone, using recycled materials.**
In sustainability efforts, Samsung is collaborating with Lotte Chemical to provide recycled plastic materials for its Galaxy S25 smartphone, emphasizing a circular resource ecosystem and sustainability. Lotte Chemical recycles plastics from semiconductor waste and discarded marine fishing nets for components like the SIM tray and speaker module of the Galaxy S25, addressing marine pollution concerns. This partnership underscores Samsung's commitment to eco-friendly product development, aligning with its ESG goals through continued collaboration with Lotte Chemical.

**Japanese smartphones gain market share, surpassing Samsung and Xiaomi due to technological advancements.**
Meanwhile, Japanese smartphones have experienced a 7% growth over the past year, gaining market share and surpassing competitors such as Samsung and Xiaomi. This growth illustrates their resilience and promising prospects owing to technological advancements and alignment with consumer demands.

Monitored Intelligence for South Korea - March 14, 2025


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North Korea cites South's accidental bombing in condemnation of Freedom Shield exercise

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

North Korea has escalated its criticism of the South Korea-U.S. Freedom Shield exercise, connecting it to a recent accidental bombing by the South Korean Air Force that injured 31 individuals, including civilians. This incident, which occurred during a live-fire drill on March 6 in Pocheon, saw a pilot mistakenly release eight bombs near civilian homes. North Korean state media labeled the bombing an "evil presage," warning of the potential for cross-border conflict.

In its commentary, North Korea condemned the Freedom Shield exercise as "nuclear war rehearsals," describing it as the "root cause" of escalating tensions on the Korean Peninsula. The Korean Central News Agency cautioned that if similar incidents occur again, South Korea and the U.S. "will have no time enough to excuse themselves." Officials highlighted the risk that inadvertent clashes could escalate into significant conflict, warning that a single misstep could lead to dire regional consequences.

Experts indicate that North Korea's rhetoric suggests a shift towards emphasizing the threats of accidental military incidents, reflecting a more aggressive military posture. The warning of "merciless action without warning" implies a heightened state of readiness to counter perceived threats. Analysts recommend taking this stance seriously, as it signals North Korea's intent to adopt a firmer approach in response to ongoing military exercises in the region.

(Yonhap Feature) S. Korea-U.S. joint drills target growing N. Korean WMD threats

Yonhap | English | News | March 14, 2025 | North Korea

South Korean and U.S. troops conducted joint military drills on March 12, 2025, in Yangju, focusing on North Korean weapons of mass destruction (WMDs). The exercise simulated a raid on a suspected WMD facility, demonstrating the allies' commitment to enhancing readiness against increasing nuclear threats from North Korea. South Korean forces utilized aerial drones and a four-legged robot as they collaborated with U.S. troops to locate and neutralize potential threats.

These drills were part of the annual Freedom Shield exercise, which coincided with rising tensions as North Korea fired multiple ballistic missiles into the Yellow Sea. North Korean leaders condemned the exercises, interpreting them as preparations for invasion rather than the defensive measures claimed by the U.S. and South Korea. The scenario emphasized post-conflict operations and strong collaboration through advanced unmanned systems.

In response to North Korea's expanding arsenal, which includes diverse nuclear delivery mechanisms and significant chemical and biological stockpiles, the training has taken on heightened importance. Recent developments include North Korea's testing of an intercontinental ballistic missile capable of reaching the U.S. mainland. The ongoing Freedom Shield exercise, involving around 19,000 South Korean troops, aims to enhance operational interoperability between South Korean and U.S. military personnel across multiple domains.

Acting president calls for strong readiness posture against North Korea threats

Joongang Ilbo | English | News | March 14, 2025 | North Korea

Acting President Choi Sang-mok highlighted the need for military readiness in light of North Korea's escalating nuclear and missile threats during a graduation ceremony at the Korea Air Force Academy on March 12, 2025. He expressed concerns over North Korea's provocative actions and its illicit weapons trade with Russia, emphasizing the risks these pose to regional and global peace.

Choi urged military personnel to enhance their preparedness, noting the significance of advanced technologies like artificial intelligence in modern warfare. He stressed the necessity of integrating these technologies into military operations to adapt to evolving battlefield conditions.

After the ceremony, Choi met with military commanders to reiterate the importance of public safety during drills. His remarks were particularly pertinent following an incident where two KF-16 fighter jets dropped bombs in live-fire exercises, injuring 31 people, including 19 civilians.

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