South Korea

Intelligence for Better Decision Making

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

News
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314

Government
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20

City/State
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33

Embassy
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1

Foreign
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0

Academic/
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4

Podcasts
0

Videos
0

Social
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0

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1

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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.

은행권에 부는 AI 바람…하나은행 "2026년 생성형AI 전 계열사 정착"

AI wave sweeping the banking sector… Hana Bank aims to establish generative AI across all affiliates by 2026

Digital Daily | Local Language | News | Dec. 12, 2025 | UndeterminedTech Development/Adoption

Hana Bank plans to implement generative AI services across all its affiliates by 2026. Seo Il-sik, head of Hana Bank's Financial AI Department, highlighted the increasing customer expectations and the need for more personalized and sophisticated AI-driven financial services beyond traditional chatbot functions. The bank aims to enhance customer experience through advanced generative AI, which can handle complex financial inquiries and proactively provide personalized financial advice, while also reducing human errors and preventing financial accidents.

The bank is advancing its AI strategy with a focus on customer service and innovation, as well as strengthening employee capabilities in AI usage. Hana Bank intends to establish a service foundation by the second half of 2025 and extend integrated generative AI services in 2026. Currently, the bank has partially implemented generative AI, including a foreign language simultaneous interpretation service that will be expanded to 16 branches serving foreigners this year.

In preparation for upcoming regulations under the AI Basic Act and financial authority rules set to take effect in 2026, Hana Bank will also establish AI governance. Seo Il-sik emphasized that this governance framework will enhance customer trust and the quality of financial AI services.

정부, 정유·주유소 업계에 기름값 인상 자제 당부

Government Urges Oil Refining and Gas Station Industry to Refrain from Raising Fuel Prices

ET News | Local Language | News | Dec. 12, 2025 | Regulation

The Ministry of Trade, Industry and Energy held a petroleum market inspection meeting on December 10, 2025, with major refiners, discount suppliers, and industry associations. The government urged the refining and gas station industry to refrain from excessive fuel price increases amid a recent upward trend in international petroleum prices.

Domestic petroleum product prices had increased sharply over the past month but stabilized at the start of December. However, international gasoline prices, which influence domestic prices, have turned upward again, rising to $79.4 per barrel in early December after a brief decline.

The ministry requested voluntary cooperation from the industry to avoid sharp price hikes and encouraged discount suppliers to help keep prices stable to reduce public burden. It plans to continue holding inspection meetings as needed and will maintain an inter-ministerial inspection team involving multiple government bodies to oversee the petroleum market.

Additionally, the ministry will upgrade the Opinet mobile app by early 2026 to offer consumers tailored gas station information based on vehicle-specific fuel efficiency, travel metrics, and prices to enhance consumer benefits.

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