South Korea

Intelligence for Better Decision Making

South Korean Corporations Advance AI Integration and R&D to Drive Industrial Transformation in 2026
Jan. 6, 2026 | Technology & Innovation

South Korean corporations are integrating artificial intelligence and bolstering research and development to reshape industrial processes and accelerate growth.

**Hyundai Motor Group’s Executive Chair Euisun Chung positioned artificial intelligence as a catalyst for industrial transformation and a driver of significant growth.**
He argued that the group’s vast troves of data on moving physical assets—vehicles and robots—along with detailed manufacturing process information give Hyundai a competitive edge that big tech rivals will struggle to replicate. Chung urged faster, transparent decision-making, calling for prompt communication and embedding employee-led analysis and conclusions directly into reporting processes. He warned that global uncertainty—from supply chain restructuring and slowing economic growth to rising geopolitical fragmentation—will likely materialize into real risks. To respond, he advocated deep organizational reflection, quicker reporting, and greater transparency. Looking ahead, Chung identified AI, software-defined vehicles, and future mobility as core growth pillars and announced a plan to invest 125.2 trillion won (about US$86.5 billion) by 2030 in both quantitative expansion and qualitative advancement.

**Amid this push for digital transformation, the Korea Industrial Technology Promotion Association’s 2026 R&D Outlook Survey reported a strong rebound in corporate R&D sentiment.**
The investment index jumped to 99.7 from 79.6 in 2025, signaling stabilization after a prior decline, while the personnel index, which tracks researcher hiring sentiment, rose to 94.9 from 84.2. Companies cited expanding existing operations (30.5%), pursuing new digital businesses—particularly AI-related ventures (19.0%)—and strong management willingness to invest (18.4%) as primary drivers of increased R&D spending, whereas investments toward carbon neutrality remained low at 2.3%. Mid-sized firms led the charge with an investment RSI of 103.1, while large and small enterprises held steady. Sector analysis showed robust investment and hiring in electrical and electronics—led by semiconductors (investment RSI 110.7, personnel RSI 104.2)—and positive trends in machinery, information and communications, and chemicals. In contrast, construction, materials, and automotive sectors continued to contract, all with indices below 91. Industry leaders stressed that a supportive policy environment remains essential to sustain selective and concentrated R&D investments.

**Samsung Electronics outlined a company-wide strategy to embed AI technology across its entire product lineup and realize a vision of becoming an “AI companion” in daily life.**
President Roh Tae-moon introduced the Vision AI Companion platform for TVs, which offers improved contextual understanding, and unveiled HDR10 Plus Advanced to enhance display performance in 2026 models. In home appliances, Samsung plans to integrate advanced screens, cameras, and voice-recognition systems within its SmartThings ecosystem to enable seamless inter-device communication and automate household tasks. The company will also expand AI features in Samsung Health, using user data to personalize wellness guidance, detect chronic disease risks, offer nutritional recommendations, and provide new tools for monitoring cognitive health.

**LG Electronics will showcase AI-powered home appliances at CES 2026 under the theme “Zero Labor Home, Make Quality Time.” The centerpiece of its exhibition, the LG CLOiD robot, employs AI and robotics to perform household chores such as cooking and laundry, adapting to individual user routines to streamline daily tasks.**
Bribery and Obstruction Allegations Shake Democratic Party Leadership
Jan. 6, 2026 | Governance & Law

Bribery and obstruction allegations have emerged against a ruling Democratic Party lawmaker.

**Kim Byung-gi has denied receiving nomination money or obstructing investigations into his wife’s alleged misappropriation of operating expenses.**
He acknowledged personal mistakes but maintained there are no legal grounds for the charges. Despite growing calls for his resignation or expulsion, Kim said he will remain in the party and will not step down voluntarily.

**On December 30, 2025, Kim resigned as the party’s floor leader after reports surfaced that former lawmaker Kang Sun-woo received 100 million won in 2022 in exchange for a city councilor nomination.**
Kang, who served with Kim on the nomination management committee—Kim as secretary, Kang as a member—was expelled from the party the following day.

**Suspicions against Kim also include allegations that he accepted tens of millions of won from district councilors in return for nominations before the 2020 general election and impeded investigations into his wife’s expenses in 2024.**
Police have opened a probe under the Improper Solicitation and Graft Act, dereliction of duty, and abuse of official authority. Kim insists the councilors were electoral competitors, not candidates, and has asked for time to clarify the facts.

**On January 5, the opposition People Power Party accused Kim and independent lawmaker Kang Sun-woo of forming a “nomination bribe cartel” and urged the appointment of a special prosecutor.**
PPP leader Jang Dong-hyeok pointed to evidence such as a recorded plea by Kang and alleged that police inquiries were passive and influenced by aides to President Lee Jae-myung.

**In response, the Democratic Party rejected any connection between the allegations and President Lee Jae-myung, noting that a different emergency committee system was in place at the time and Lee did not serve as party leader.**
Spokesperson Kim Hyun-jung called the PPP’s claims false, demanded an apology from Jang Dong-hyeok, and warned of possible legal action if he fails to retract his statements.

**Also on January 5, a civic group focused on judicial justice filed a complaint against Rep.**
Kim Byung-gi, accusing him of receiving illegal political funds from two local councilors in his Seoul constituency in 2020 and returning the money three to five months later. The group further alleged that Kim accepted an expensive accommodation voucher from Korean Air. Separately, the group lodged a complaint against Kim Hyun-ji, a personal secretary to President Lee Jae-myung, alleging she condoned the misconduct while serving as the Democratic Party chairperson’s secretary.

Monitored Intelligence for South Korea - Jan. 7, 2026


News
Media
282

Government
Releases
10

City/State
Releases
27

Embassy
Releases
0
Foreign
Service
Advisories
0
Academic/
Think
Tank
5


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
0

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

Risk Category
Items Reported On
Geopolitical Conflict and Disputes
9
IP Protection
2
Regulation
5
Accidents
2
Corporate Corruption or Fraud
2
Crime
8
Epidemics and Pandemics
3
Protest, Demonstration, Dissent
3
Supply Chain Issues
2
North Korea
5
Cyber Attacks and Data Loss
2
Shifting Geopolitical Alliances
6
Political Scandal or Corruption
6
Privacy
3

Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
Tech Development/Adoption
33
Bizdev-Partnering
9
Employment
4
Economic Growth
2
Real Estate
1
Operating Results
4
Asset Price Change
6
Taxes
1
Mergers & Acquisitions
1
Financial System Problems
5
Investor Sentiment
4
Budgets-Budgeting
1
Inflation
1
Supply Chain Issues
1
Legal Exposure
1
Political Policy Resistance
1
Trade Issues and Numbers
1

이 대통령·시 주석, '사드 경색' 10년 복원 첫발

President Lee and Xi Jinping take first step to restore a decade-long THAAD deadlock

ET News | Local Language | News | Jan. 7, 2026 | Shifting Geopolitical Alliances

On January 5, 2026, South Korean President Lee Jae-myung and Chinese President Xi Jinping met in Beijing, marking a significant step toward restoring bilateral relations strained since the 2016 THAAD crisis. Their agenda included an official welcome ceremony, a summit meeting, MOU signings, and a state banquet. The 90-minute summit, held two months after their November 2025 meeting in Gyeongju, focused on cooperation in diplomacy, security, and the economy, with both leaders emphasizing a commitment to normalize relations and deepen strategic partnership.

The two countries agreed on gradually expanding cultural and content exchanges and initiated consultations on collaborative peace efforts in the West Sea, including addressing illegal fishing concerns. They reaffirmed their shared interest in peace and stability on the Korean Peninsula, with China pledging a constructive role. Economic and technological cooperation was advanced through 14 MOUs and a donation certificate, emphasizing digital technology, AI, startups, investment, and environmental collaboration on issues beyond fine dust, including climate change and the circular economy.

Notable progress was made in easing trade barriers, particularly for seafood exports and Korean food companies in China, as well as strengthening intellectual property protections at customs. The summit was seen as a validate of President Lee’s pragmatic diplomacy, drawing high-level Chinese officials’ engagement, yet external geopolitical tensions with the U.S. and Japan remain potential challenges. President Xi’s remarks underscored a call for aligned strategic choices, opposition to protectionism, and support for multilateralism, signaling expectations for South Korea's stance on regional issues involving the U.S. and Japan.

(2nd LD) Lee calls for joint efforts with China to explore 'viable' measures for Korean Peninsula peace

Yonhap | English | News | Jan. 7, 2026 | Geopolitical Conflict and Disputes

South Korean President Lee Jae Myung pledged to collaborate with China to identify viable measures for peace on the Korean Peninsula during a summit with Chinese President Xi Jinping in Beijing on January 5, 2026. This commitment was made against the backdrop of rising tensions after North Korea launched ballistic missiles hours prior to Lee's arrival. Lee emphasized the importance of bilateral cooperation as a foundation for peace, prosperity, and growth in the region.

Lee expressed hope that the summit would mark the beginning of a "full restoration" of South Korea-China relations in 2026. His visit aims to stabilize ties with China, a crucial partner in trade, tourism, and peace initiatives, while maintaining South Korea’s strong alliance with the United States through a pragmatic diplomatic approach. Relations had been strained under former President Yoon Suk Yeol due to closer alignment with the U.S. amid growing global economic rivalry.

Highlighting the shared history and longstanding friendly ties between South Korea and China, Lee promised to expand cooperation on an equal footing in areas affecting everyday lives and to enhance collaboration on livelihood issues. He also expressed a desire to develop the strategic partnership between the two countries into an irreversible trend and to open a new phase in bilateral relations.

During the visit, a 21-gun salute was held at Tiananmen Square to honor the state visit. Lee also called for increased cooperation between South Korea and China in artificial intelligence, beauty, and cultural products sectors to boost trade. The summit occurred amid heightened tensions between Beijing and Tokyo over Taiwan, with Lee preparing for an upcoming summit with Japanese Prime Minister Sanae Takaichi. In a recent interview, Lee reaffirmed South Korea’s commitment to the One China policy, aligning with the diplomatic stance established in 1992.

Hanmi Semiconductor launches EMI Shield 2.0 X series for aerospace markets - CHOSUNBIZ

Chosunbiz | English | News | Jan. 7, 2026 | UndeterminedTech Development/Adoption

HANMI Semiconductor launched the EMI Shield 2.0 X series on January 5, 2026, targeting the aerospace and low Earth orbit (LEO) satellite communications markets. The product line consists of five models: EMI Shield Vision Attach (ATTACH) 2.0 X, EMI Shield Vision Detach (DETACH) 2.0 X, EMI Shield Micro SAW & Vision Placement (micro SAW & VISION PLACEMENT) 2.0 X, EMI Shield Tape Mounter (TAPE MOUNTER) 2.0 X, and EMI Shield Tape Laser Cutting (TAPE LASER CUTTING) 2.0 X.

HANMI Semiconductor has led the EMI shield equipment market since 2016 and supplied global aerospace companies for three consecutive years since 2023. The EMI Shield 2.0 X series, the first new model in about three years since December 2022, offers improved precision and user convenience, including a proprietary Ball Grid Special Algorithm and multiple patented technologies. Features like automatic device switching reduce operator involvement and enhance operational efficiency.

EMI shield equipment is critical for protecting aerospace, LEO satellites, and defense drones from electromagnetic interference, which can cause malfunctions in semiconductors and jeopardize safety. The increasing use of Wi-Fi on aircraft has further accelerated demand for EMI shielding. The LEO satellite communications market is projected to grow at a CAGR of 11.9% from $11.81 billion in 2025 to $20.69 billion in 2030, with satellite launches rising accordingly.

Beyond aerospace and LEO, EMI shielding is also important for smartphones, wearables, and IoT devices due to their multifunctional and compact designs. HANMI Semiconductor aims to strengthen its global market position by responding to the growing aerospace market and demand for high-performance electronic devices.

Try the Daily Briefing for your country of choice for two weeks--free of charge and with no obligation.

Have a service or subscription question? We'd be happy to hear from you.

How can we help?
Full Name:
Email Address:
Type of Inquiry:
Country of Interest:

Contact us for a free trial of the Daily Briefing for your country of choice.


We currently cover:
South Korea
Japan
China
Taiwan
Vietnam
India

info@eruditerisk.com

The Daily Briefing is delivered Monday through Thursday via email.

Each day's reports include a combination of:

Takes
Takes are our deep dives into a topic of enduring interest or concern. Takes include copious references to all the media resources we gathered to build them.

Developments
Developments are key issues and incidents being heavily reported on in country. These are the centers of local thought gravity around which everything else revolves.

Risk Media
Summaries and analysis of the most important risk issues reported on in media, arranged by risk category. Learn about risk trends and issues while they are developing--before they blow up.

Ops Media
Summaries and analysis of the most important operational issues reported on in media, arranged by operations category. See what's changing in your market, and what's not.

Government Releases
Government press and data releases on key economic data, regulation, law, intiatives, incidents. Straight from the government's press to your eyes in less than a day.

Embassy and Business Association Releases
Statements and news releases from foreign embassies and business/industry associations, including chambers of commerce.

The Daily Briefing is comprehensive!

The Daily Briefing can run 50-100 pages each day!

Luckily, Erudite Risk tailors every report specifically to you.

Content Filtering
We try hard to ensure that every piece of information included in each day's reports will be of interest to our readers.

To fulfill our goal of comprehensively monitoring the intelligence landscape and also keeping reports readable, we build big reports--then deliver only the information that applies to you.

Each Daily Briefing is a bespoke report matched to your concerns. Tell us what you want in it, or we can match it to your professional needs. It's that easy.