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AI Sector Volatility and Regulatory Shifts Reshape Global Markets and Corporate Strategy

Nov. 13, 2025 | Firms

Renewed volatility in equity markets and evolving AI regulations are shaping investment strategies and corporate policies worldwide.

**In the US, equity markets opened mixed on November 11, 2025, as SoftBank’s sale of its entire $5.83 billion stake in Nvidia triggered renewed AI sector jitters, sending Nvidia shares down 2.2%.**
The Nasdaq fell 0.3% and the S&P 500 dipped 0.1%, while the Dow Jones Industrial Average rose 0.2%. Investors balanced these concerns with optimism about the imminent end of the 42-day government shutdown, although the Treasury market remained closed for Veterans Day. In contrast, European markets rose at the open, and Asian equities delivered mixed performance.

**Pure-play AI infrastructure firms experienced notable stock moves.**
CoreWeave shares dropped 8.4% after issuing an annual revenue forecast below analyst expectations, and quantum computing specialist Rigetti Computing slid 3.8% on third-quarter revenue that missed estimates. By contrast, Rocket Lab narrowed its quarterly loss and reported $155 million in revenue, which propelled its shares up 8%. Paramount Skydance also jumped nearly 5% after announcing cost-cutting measures and planned streaming price increases.

**Meanwhile, in South Korea, authorities delayed the public notice for the Enforcement Decree of the AI Basic Act to revise safety and trust obligations more thoroughly.**
The Ministry of Science and ICT plans to require stronger labeling for AI-generated outputs so human users can identify them. Lawmakers from both ruling and opposition parties have called for greater transparency, ethical standards and safety measures. With full enforcement scheduled for January 22, 2026, industry stakeholders—especially foreign firms—are concerned about the shortened preparation window. The ministry aims to issue the public notice next week, collect public comments through December and largely finalize the decree according to the September draft, while providing at least a one-year guidance period before imposing fines.

**Cloudera Korea has shifted its strategic focus from data management to AI, targeting double-digit growth in the AI sector by 2026 and positioning itself as an “end-to-end AI platform.” The company emphasizes customizing AI transformations to customer environments rather than pursuing a purely cloud-centric model.**
Its AI-ready data platform supports data pipelines, governance, model training and inference across both cloud and on-premises infrastructures. Cloudera has expanded partnerships from four to include Dell Technologies, AWS, NVIDIA and other hardware and AI model providers. It also introduced “Cloudera Data Services 2.0,” a unified platform currently in private preview, and promotes an enterprise AI architecture that could reduce total cost of ownership by up to 75% compared with public cloud alternatives.

**Investor Michael Burry accused major US cloud and AI infrastructure firms of extending depreciation schedules for high-cost assets—such as Nvidia chips and servers—beyond their actual two- to three-year replacement cycles.**
He estimates these underreported depreciation charges could total roughly $176 billion between 2026 and 2028. Burry singled out Oracle and Meta, suggesting their 2028 earnings might be overstated by 27% and 21%, respectively. Although GAAP allows firms broad discretion in setting depreciation lives, he argues this practice inflates short-term net income without boosting cash flow. Warning of a late-1990s-style AI investment bubble, Burry disclosed substantial put options on Nvidia and Palantir valued at $187 million and $912 million, and plans to share further details on November 25.

AI Innovation Accelerates Across South Korea’s Tech Sector

Nov. 13, 2025 | Technology & Innovation

South Korean technology companies are accelerating their AI ventures through innovative chatbots, collaborative forums, government-led foundation models, and strategic partnerships.

**Seoul-based Scatter Lab launched Zeta in open beta in April 2023 with support from SK Telecom.**
By October, the chatbot had recorded 73.62 million cumulative hours of user engagement, surpassing ChatGPT’s 48.28 million hours. The app, powered by proprietary small language models, lets users create customizable AI characters and enjoy interactive storytelling. It has attracted 2 million users worldwide and exceeded 2.3 billion monthly conversational exchanges. In the second quarter of 2025, Zeta generated 5.2 billion won in revenue and 900 million won in operating profit at a 17 percent margin. Nearly 90 percent of its audience consists of teenagers and people in their twenties; by late May 2025, over 3.9 million users had created more than 190,000 unique characters. After facing criticism over inappropriate content, Scatter Lab introduced age verification and an adult-only unlimited mode in August 2025. The company now aims to expand into Japan and English-speaking markets with a goal of over 100 million global users.

**Meanwhile, Kakao launched its Daily AI Forum in collaboration with 13 experts from industry and academia, convening regular presentations and discussions on AI technology trends, service innovations, and implementation challenges.**
Participants include members of the IT Communication Research Institute, CEOs of AI-focused startups, and Kakao’s own AI leaders. At the inaugural session on November 10, 2025, speakers examined Agentic AI and the evolution of business and organizational structures in the AI era, and Kakao outlined its shift toward an Agentic AI platform strategy. The forum bridges real-world insights with Kakao’s technology roadmap, exploring practical plans for AI development and its societal impact.

**Under the government-backed Independent AI Foundation Model Project, the South Korean government, the National Assembly, and industry stakeholders are building an autonomous AI ecosystem to drive innovation in manufacturing, defense, and cultural sectors.**
At a forum on November 12, 2025, lawmakers, major ICT firms, and academics discussed strategies for broad AI adoption. NC AI’s consortium of 14 companies has developed a 3D foundation model that integrates text and 3D data via Unreal Engine, targeting industry-specific applications such as predictive maintenance, digital twin simulations for defense, and cultural content localization. Eighteen industry groups and 40 companies are contributing to open research and model development, emphasizing explainable AI and physical AI capable of adapting to variable environments. Domestic AI semiconductor firms, including Rebellion and Mobilint, stressed the strategic importance of integrated AI semiconductors, infrastructure, and software to ensure sovereignty and cost-effective, high-performance systems. The Ministry of Science and ICT reported that development by five consortia is roughly 60 percent complete, with plans to narrow the field to two teams by 2027 and secure GPU supply and talent through continued industry dialogue.

**Hancom’s third-quarter 2025 results reflect its transformation into an AI-centered technology firm.**
Consolidated revenue rose 18.1 percent year-on-year to 84 billion won, and operating profit increased 45.7 percent to 12.3 billion won. On a standalone basis, revenue climbed 17.2 percent to 44 billion won, and operating profit margin held at 27.8 percent despite strategic R&D and rebranding investments. The company drove growth with AI product lines such as Hancom Assistant and Hancompedia, its cloud SaaS and web office services, and major public sector contracts including the National Assembly Big Data Platform and intelligent work systems for government agencies. As a key partner in the Independent AI Foundation Model Project led by LG AI Research, Hancom is advancing on-device AI solutions by integrating its Assistant Edge technology with Intel processors and pursuing international expansion through localized AI offerings, notably in financial technology via a joint venture with Japan’s Kiraboshi Financial Group and AI-based facial recognition in collaboration with FacePhi.

Monitored Intelligence for South Korea - Nov. 14, 2025

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North holds forum on Japan's colonial atrocities as Pyongyang nonresponsive to Tokyo's summit request

Joongang Ilbo | English | News | Nov. 14, 2025 | North Korea

North Korea held a forum on November 13, 2025, at the State Academy of Sciences in Pyongyang condemning Japan’s colonial-era atrocities during its 1910–45 rule over Korea. The forum featured presentations from officials and researchers denouncing Japan as an "inveterate enemy" and emphasizing that the historical wounds inflicted by Japan will require significant retaliation. The event was reported by the state-run Korean Central News Agency (KCNA).

The forum occurred amid Japan's recent request for a bilateral summit with North Korea, made by Japanese Prime Minister Sanae Takaichi following her October 21 inauguration. North Korea has not responded to this request. Previously, in March 2024, Kim Yo-jong, North Korean leader Kim Jong-un's sister and vice department director of the ruling Workers’ Party, rejected any contact or negotiations with Japan, particularly over the abduction issue.

The abduction issue concerns North Korea's kidnapping of Japanese citizens in the 1970s and 1980s, which Pyongyang admitted to partially in 2002 but which Japan insists remains unresolved. Kim Yo-jong stated in February 2024 that the abduction matter “has already been resolved,” contradicting Tokyo's position that the full account has yet to be given. North Korea continues to maintain a hostile stance toward Japan while ignoring Tokyo's summit overtures.

G7 top diplomats reaffirm commitment to 'complete' denuclearization of North Korea

Joongang Ilbo | English | News | Nov. 14, 2025 | North Korea

The top diplomats of the G7 countries, including the United States, Canada, France, Germany, Italy, Britain, Japan, and the EU High Representative, reaffirmed their commitment to the "complete" denuclearization of North Korea during their meeting in Niagara-on-the-Lake, Ontario, on November 12-13, 2025. They condemned North Korea’s advancing nuclear and ballistic missile programs and emphasized adherence to relevant U.N. Security Council Resolutions.

The G7 statement also expressed serious concern over North Korea's involvement in cryptocurrency thefts and urged the country to address the issue of abductions promptly. Additionally, the diplomats reaffirmed their strong support for Ukraine’s defense and criticized North Korea, Iran, and China for supplying military assistance, weapons, and dual-use components to Russia, which they described as enabling Russia’s ongoing war.

AI가 짓고 데이터가 잇는다…도로공사, 스마트건설 본격 추진

AI Builds and Data Connects… Korea Expressway Corporation Actively Advances Smart Construction

ET News | Local Language | News | Nov. 14, 2025 | UndeterminedTech Development/Adoption

Korea Expressway Corporation is advancing smart construction by integrating AI-based technologies at highway construction sites, accelerating the digital transformation of road development. It is developing a system that combines building information modeling (BIM) and equipment automation to manage the entire construction lifecycle—from design to quality control—through data.

The corporation was selected as the first road sector participant in the Ministry of Land, Infrastructure and Transport's "Smart Construction Support Project." At the Daesan–Dangjin section of the Seosan-Asan project, automated earthworks use swarm drones and autonomous survey vehicles to create 3D digital maps, while AI controls equipment routing and operations. This has boosted work efficiency by over 30% and ensures consistent quality regardless of operator skill.

In partnership with Hyundai M-Systems through a national R&D project, the Expressway Corporation helped develop an AI safety solution for automated construction equipment, which Hyundai M-Systems later exported to Volvo. This public-private collaboration has enabled the adoption of domestically developed AI safety technology by a global equipment brand, improving precision and safety on construction sites.

Beyond automation, the Expressway Corporation is expanding data infrastructure by planning regionally distributed AI public data centers on unused highway land, supporting private-sector innovation. It has opened access to 16 types of data, including road, traffic, and wildlife information, leading to commercialization by 18 startup teams. Emerging services include drowsy driving prediction, vehicle parts recommendation, insurance cost reduction, and support for mobility-vulnerable users. The operator also manages specialized agencies and data safe zones for pseudonymized sensitive data to enable safe technology demonstrations while protecting privacy.

The corporation recently won the Grand Prize at the "1st Korea Artificial Intelligence Innovation Awards" for its AI innovation achievements, highlighting highways' evolution into industrial platforms that drive the national AI ecosystem. Officials anticipate increased adoption of AI construction technology as the industry embraces data and technology integration.

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