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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Koryo Medicine in North Korea: Insights From a Pharmaceutical App Dataset

38 North | English | AcademicThink | Dec. 12, 2025 | North Korea

An analysis of a North Korean pharmaceutical app dataset reveals that Koryo medicines, North Korea’s traditional medical system, constitute 7.1 percent of the app’s 3,319 medical items. Of these, 234 domestically produced Koryo medicines were identified, manufactured across 69 factories, with key producers including the Pyongcheon and Sokam factories. The medicines are primarily sold as powders, pills, or capsules, favoring solid forms due to the country's limited cold-chain infrastructure. Some products, like Uhwangch’ŏngsimhwan, are produced by multiple factories, indicating strong domestic demand. The dataset also shows hybrid medicines combining Western pharmaceuticals and Koryo ingredients, and formulations such as injectable versions of traditionally oral medicines suggest efforts to modernize and integrate Koryo medicine into hospital use.

Pricing analysis indicates that Koryo medicines are generally affordable, with prices displayed in two categories linked to different exchange rates. Prices vary widely even among the same medicine types, with some products costing as little as $0.06 per pill and others up to $132 per unit. This variance may reflect differing production methods or quality. The app provides information on composition, usage, and precautions, implying that users can self-manage treatments with some guidance, although the prescription and diagnostic process remains unclear.

The North Korean government actively promotes Koryo medicine as a cost-effective approach to public health amid limited resources. This includes mandated medicinal herb collection, establishment of herb cultivation areas, and initiatives to develop new medicines and modernize production. State control of herb resources and factories helps keep prices low. However, significant concerns persist regarding the standardization, quality control, and regulatory oversight of Koryo medicines. There is limited information on safety and efficacy verification processes, and some medicines make broad or exaggerated therapeutic claims without mention of side effects.

In conclusion, while Koryo medicines are widely produced and accessible at low cost in North Korea, their true impact on public health remains uncertain due to gaps in data on quality and effectiveness. Further transparent information will be necessary to accurately assess the role these traditional medicines play within North Korea’s healthcare system.

South Korea's 30s Unemployment Surges 29.7% Amid Economic Slowdown

Chosun Ilbo | English | News | Dec. 12, 2025 | UndeterminedUnemployment

Unemployment among South Koreans in their 30s surged by 29.7% year-on-year, reaching 164,000 in November, according to the Ministry of Data and Statistics. This marks the fourth consecutive month of rising unemployment in this age group, with the latest increase being the largest since January 2021. The unemployment rate for those in their 30s rose by 0.7 percentage points to 2.9%, while rates for those in their 50s and 60s declined. The youth unemployment rate (ages 15–29) remained steady at 5.5%, though employment among this group decreased by 177,000 compared to the previous year.

The employment situation is worsening due to a prolonged economic slowdown, weak domestic demand, and the adoption of AI technologies, which have reduced hiring particularly in manufacturing and construction sectors. The number of 'inactive' individuals—those not working or seeking work—in their 30s reached a record high of 314,000 in November, contributing to a record total inactive population of 2.54 million across all age groups. Youth employment has been declining for 19 months, with the 20s age group's employment rate falling below that of those in their 60s, indicating a severe labor market imbalance.

The economic slowdown has led companies to cut investment and hiring, fueling a cycle of reduced consumption, further impacting job availability. Rising living costs and interest burdens add to household financial pressures. In response, the South Korean government plans to launch new youth employment measures as part of its 2026 economic growth strategy to address these challenges and support the inactive youth population.

North Korea convenes plenum, launches rockets into sea

Korea Herald | English | News | Dec. 12, 2025 | North Korea

North Korea convened the 13th Enlarged Plenary Meeting of the Eighth Central Committee of the ruling Workers’ Party of Korea on December 9, presided over by leader Kim Jong-un. The session brought together senior party officials, government ministries, provincial leaders, and military commanders to review state policy implementation and prepare for the Ninth Party Congress expected in early 2025. The upcoming congress, held every five years, is anticipated to set the roadmap for economic management, military development, and foreign policy toward Seoul and Washington. The plenary session, originally expected mid-December, was moved up to accelerate these preparations.

Following the start of the plenum, North Korea fired around 10 artillery rockets into the Yellow Sea, likely from a 240 mm multiple rocket launcher system, as part of its annual winter training drills. The rockets have the capability to reach Seoul and surrounding areas. This launch occurred shortly after South Korea reported incursions by Chinese and Russian military aircraft into its air defense identification zone, suggesting a possible signal of solidarity with Beijing and Moscow amid growing trilateral military cooperation.

The plenum resulted in the approval of discussions on five agenda items, including finalizing preparations for the upcoming congress and reviewing the five-year economic plan adopted in 2021. Analysts expect limited public disclosures from this meeting, reserving major policy announcements for the formal party congress. Key points under observation include the potential institutionalization of "Kim Jong-un’s revolutionary thought" as an official guiding ideology, the possible revival of the abolished state presidency system to strengthen Kim's authority, and the formal adoption of the "two-state theory" in the party charter, signaling a shift to treating South Korea as a hostile foreign state rather than a divided nation.

Additional interests include signs of internal reforms, such as anti-corruption measures, tighter party discipline, or reorganization of economic and administrative bodies, as Kim prepares his governance priorities for the next five years. The regime appears to be maintaining a calm, domestically focused stance ahead of the congress, emphasizing internal party management over external messaging.

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