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


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휴네시온, 공급망 보안 통합 위험관리 체계 구축

Hunesion Establishes Integrated Risk Management System for Supply Chain Security

ZD Net Korea | Local Language | News | Dec. 12, 2025 | Supply Chain Issues

Hunesion, led by CEO Jung Dong-seop, has established an integrated risk management system focused on supply chain security and conducted company-wide SBOM-based supply chain security policy and operations training. This initiative addresses growing concerns about software supply chain attacks amid accelerated digital transformation. The training aims to set security policies, operational guidelines, and strengthen response capabilities to protect company and customer assets.

Globally, including in the United States and Europe, policies mandating SBOM (Software Bill of Materials) submission are being implemented, with the U.S. requiring it for software and medical devices supplied to the federal government. South Korea plans to institutionalize SBOM submission for public sector IT systems and products by 2027 as part of its comprehensive information protection plan announced in October.

SBOM, which applies the manufacturing Bill of Materials concept to software, is central to supply chain security by enabling identification and management of software components. In June 2025, Hunesion was selected for KISA’s “Supply Chain Security Model Construction Support Project,” under which it built an SBOM-based integrated risk management system. This system is incorporated into Hunesion’s network interconnection solution, i-oneNet, allowing prevention of threats across software development, manufacturing, distribution, and deployment phases, as well as enabling rapid incident response.

Hunesion recently inspected the 'React' server component vulnerability, confirming no impact on its systems. The company held SBOM-based security policy training for employees on December 8 and presented SBOM sharing strategies for supply chain threat response at the Peace & Park Convention on December 5.

Hunesion leads a consortium of five firms, each bringing specialized capabilities: SecureSystems provides AI-driven real-time threat monitoring, O2ones supports SBOM internalization, Cryptolab offers homomorphic encryption for SBOM distribution modeling, and EconetSystem handles SBOM provision systems and operational support. Together, they demonstrate comprehensive strategies covering the software supply chain lifecycle.

The i-oneNet solution, known for protecting networks from external and internal cyber threats, has led the domestic network interconnection public procurement market since 2015. It incorporates advanced features such as N2SF, quantum-resistant cryptography, cloud compatibility, and AI support. Product lines like i-oneNet DD and i-oneNet DX are tailored for operational technology (OT) security environments in critical infrastructure, supporting the digital transformation of industrial control systems.

Given the critical importance of supply chain security in national infrastructure sectors—such as power, gas, water, transportation, and communications—Hunesion is also involved in an international R&D project to develop an S/HBOM-based integrated security management platform for industrial control system supply chains, aimed at enhancing global competitiveness.

CEO Jung Dong-seop emphasized Hunesion’s decade-long leadership in network interconnection and the company’s successful internalization of a supply chain security management system to comply with strengthened government standards under the national information protection plan.

LG전자, 퀄컴과 미래 AIDV 시대 선도

LG Electronics and Qualcomm Lead the Future AIDV Era

ZD Net Korea | Local Language | News | Dec. 12, 2025 | UndeterminedTech Development/Adoption

LG Electronics, in collaboration with Qualcomm Technologies, has developed a generative AI-based high-performance computing device (HPC) for vehicles, advancing the AI-centered vehicle (AIDV) era. This new technology, called the “AI Cabin Platform,” will be revealed to automaker customers for the first time at CES 2026 in Las Vegas, starting January 6. The AI Cabin Platform integrates various open-source generative AI models, including vision-language models, large language models, and image-generation models, to enhance in-vehicle infotainment and create a new experience for occupants.

The AI Cabin Platform is powered by Qualcomm’s “Snapdragon Cockpit Elite,” which enables all AI computations to be processed locally within the vehicle. This local processing ensures faster, more reliable operation and improved security by eliminating the need for communication with external AI servers, thereby reducing the risk of data leaks. The platform uses interior and exterior cameras to analyze the vehicle’s surroundings and occupant conditions, providing context-appropriate guidance and customized images.

Earlier, at CES 2025, LG and Qualcomm showcased an HPC platform integrating infotainment and advanced driver-assistance systems using Qualcomm’s Snapdragon Ride Flex system-on-chip, recognized for its cost and performance benefits. Eun Seok-hyun, LG Electronics’ Vice President and head of the VS Business Division, emphasized the company’s commitment to leading the transition from software-defined vehicles (SDV) to AI-centered vehicles (AIDV) through strengthened global partnerships.

[소부장 테크페어] 유미코아 “HLM 양극재 준비 완료…차세대 소재도 개발”

[Sobu-Jang Tech Fair] Umicore ready with HLM cathode material… also developing next-generation materials

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

At the 2025 Global Materials, Parts and Equipment Tech Fair held on December 10th in Seoul, Umicore outlined its strategy to diversify its cathode material portfolio. The company is set to complete development and establish mass production of high-lithium manganese (HLM) cathode materials by next year, aiming to improve price competitiveness through the use of manganese, a lower-cost element. HLM materials offer higher energy density compared to lithium iron phosphate (LFP), but Umicore plans to avoid competing in the LFP sector, choosing instead to focus on HLM to differentiate itself from Chinese market leaders.

Umicore, a Belgium-based global chemical materials company with a 200-year history, currently operates a cathode material plant in Cheonan, South Korea, and supplies to major domestic battery manufacturers LG Energy Solution, Samsung SDI, and SK On. Traditionally focused on high-nickel, cobalt, manganese (NCM) cathodes, Umicore will expand next year into HLM materials. The company aims to address the current electric vehicle market slowdown by leveraging HLM's cost advantages and intends to boost the energy capacity of mid-nickel cathodes by increasing maximum voltage from about 4.2 V to 4.4 V.

In addition to HLM, Umicore is developing cathode materials targeted at next-generation solid-state batteries, which provide higher energy density and improved safety by using solid electrolytes. The company is working on new cathode coating technologies to enhance compatibility and electron transport with solid electrolytes, collaborating with research institutes and partners in these efforts.

Umicore is also researching disordered rock salt (DRX) cathode materials for the post-2035 period. These next-generation materials incorporate elements such as lithium, manganese, titanium, zirconium, and molybdenum and are aimed at delivering cost advantages. The company is in the early stages of this R&D but plans to build a comprehensive cathode material portfolio to serve a range of electric vehicle segments from low- to premium-priced models.

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