South Korea

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South Korea Seeks Equal Tariff Relief Amid New US Semiconductor Measures
Jan. 19, 2026 | Geopolitics & Defense

South Korea is engaging with the United States over newly announced semiconductor tariffs, seeking to protect its leading memory chip industry and secure treatment comparable to Taiwan’s.

**Trade Minister Yeo Han-koo assessed that the first tranche of US semiconductor tariffs, unveiled on January 14, 2026, will have limited direct impact on Korean firms.**
The initial 25 percent levy targets advanced AI chips from Nvidia and AMD but explicitly excludes memory chips, the primary export of Samsung Electronics and SK hynix. President Trump’s proclamation likewise focuses on Nvidia AI semiconductors imported from Taiwan and re-exported to China and other markets, although South Korean high-bandwidth memory embedded in those products faces scrutiny despite the tariff’s stated scope.

**At the January 16 groundbreaking of Micron’s New York facility, US Commerce Secretary Howard Rutnik warned that major memory chip producers must build US manufacturing capacity or face tariff increases up to 100 percent.**
He stated that companies will either pay full tariffs on imported memory semiconductors or shift production stateside. While he did not name specific firms, industry observers interpret this message as targeting South Korean and Taiwanese leaders in global semiconductor output.

**Last month the United States and Taiwan finalized a trade agreement granting Taiwanese chipmakers structured exemptions designed to encourage foreign direct investment in US fabs.**
During plant construction, imports up to 2.5 times new capacity enter tariff-free, and after startup up to 1.5 times capacity remains exempt. South Korea secured a “no less favorable treatment” commitment in the Korea–US Joint Fact Sheet but has yet to finalize equivalent tariff relief, using Taiwan’s terms as the benchmark for its negotiations.

**On January 18 the Blue House announced plans to consult with Washington under the “no less favorable treatment” principle, aiming to align Korean outcomes with those granted to Taiwan.**
Policy chief Kim Yong-beom is coordinating with relevant ministries to develop countermeasures, drawing on prior assurances that South Korea’s semiconductor industry would not face stricter treatment than other economies. At the same time, Seoul is monitoring US reviews of critical mineral imports tied to broader supply-chain diversification goals and maintaining continuous high-level dialogue to clarify the timing and scope of any second phase of tariffs.
South Korea Advances Dokpamo AI Project With New Consortium Call and Revised Evaluation Criteria
Jan. 19, 2026 | Technology & Innovation

South Korea’s Ministry of Science and ICT has set the stage for the next phase of its Dokpamo AI foundation model project by announcing first-stage results and opening a call for an additional consortium.

**On January 15, 2026, the ministry released the first-stage evaluation for Dokpamo, the national initiative to develop an independent AI foundation model.**
LG AI Research, SK Telecom, and Upstage advanced to the second stage. Because only three teams moved forward instead of the planned four, the ministry invited all original applicants—eliminated teams and new entrants alike—to compete for the remaining slot.

**The evaluation combined benchmark testing, expert assessments, and real-user evaluations to measure model performance, cost efficiency, usability, and ecosystem impact.**
LG AI Research led every category and earned the top composite score of 90.2 points, receiving the highest marks from both experts and end users.

**Naver Cloud, initially ranked among the top four, fell foul of the ministry’s originality rules.**
Its foundation model relied on a non-updatable external encoder tied to a Chinese AI system, violating the requirement that teams develop models from fully initialized and optimized weights. As a result, the ministry disqualified Naver Cloud’s entry as an independent model.

The consortium chosen through the second-chance recruitment will receive the same support as the other advancing teams, including GPU access, data resources, and designation as a “K-AI company.” Naver Cloud and NC AI both confirmed they will not reapply, while other original applicants and companies such as Kakao and KT are reportedly considering participation in the new call.

**For the second-stage evaluation, the ministry refined its criteria to emphasize objective performance, technical capability, and practical industrial usability.**
While maintaining the three core pillars—benchmark testing, expert review, and user evaluation—it increased the weight on efficiency and usability over sheer model size. The revised framework also addresses past concerns about technological originality and open-source usage, incorporating feedback from academia, industry, and domain experts.

**Vice Minister Ryu Je-myung said the ministry has evolved project criteria and evaluation procedures in consultation with participating teams.**
He pointed to ongoing adjustments in benchmarking methods, evaluation items, and scoring rules to ensure clarity and flexibility, keep pace with rapid global AI developments, and avoid the issues encountered in the initial phase.

**SK Telecom’s consortium tied with LG AI Research for first place in Phase 1 with its A.X K1 foundation model, which features over 519 billion parameters.**
The team plans to expand its training data, add multimodal capabilities—starting with document image recognition and summarization—and integrate voice and video processing in the second half of 2026. Supported languages will include Korean, English, Chinese, Japanese, and Spanish.

**Development of A.X K1 involves eight core partners—SKT, Krafton, 42dot, Rebellion, Liner, Selectstar, Seoul National University, and KAIST—alongside new collaborations with KAIST’s AI Graduate School and SNU’s Department of Mathematical Sciences.**
SK Group affiliates such as SK Hynix, SK Innovation, SK AX, and SK Broadband, as well as roughly 20 other institutions including the Korea Higher Education Foundation and the Choi Jong-hyun Academy, will adopt and deploy the model.

**NC AI, eliminated in the first-stage evaluation, confirmed it will not participate in the revival round.**
The company said it will focus on its existing base model and consortium partnerships to advance industry-specific AI and physical AI technologies, contributing to developments in the nation’s industrial sector.

Monitored Intelligence for South Korea - Jan. 19, 2026


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20층 높이 쓰레기산 '와르르'…작업자 등 28명 사망

20-Story High Mountain of Trash Collapses, Killing 28 Workers and Others

Hankyung | Local Language | News | Jan. 19, 2026 | Accidents

A massive garbage pile collapse in central Cebu, Philippines, has resulted in the deaths of 28 workers, with search operations for eight missing individuals entering their tenth day. The collapse occurred on January 8 at the Binaliu village landfill in Cebu City, where about 50 people were buried under the 20-story high trash pile. So far, 18 people have been rescued and are receiving hospital treatment.

Search and recovery efforts involve around 300 personnel and two large cranes, but operations proceed cautiously due to the instability of the toxic gas-emitting garbage layers and risk of further collapse. The landfill is situated in a mountainous area vulnerable to landslides, complicating rescue efforts. Authorities are investigating the cause of the collapse by interviewing survivors and relatives of the missing.

Local criticism describes the disaster as man-made, citing poor management and the landfill's proximity to residential areas, which has long caused complaints over odors, water pollution, and traffic. After the landfill suspended operations, Cebu City’s waste management system faced a crisis. The city, home to approximately one million people, is negotiating with neighboring areas to handle its daily waste production of 500–600 tons. The Philippine Minister of Environment and Natural Resources has called for a long-term waste management plan for the region.

(LEAD) Banks join authorities to stem currency weakness

Yonhap | English | News | Jan. 19, 2026 | Regulation

South Korea's major commercial banks are collaborating with government foreign exchange authorities to address the recent weakening of the won. Measures include offering incentives for customers to sell U.S. dollars and reducing interest rates on foreign-currency deposits. Despite these efforts and verbal interventions, the won has hovered near 1,450 per dollar, with the rate at 1,473.6 per dollar as of Friday, pressured by a strong U.S. dollar, geopolitical risks, and robust overseas equity investments by local investors.

Authorities have urged banks to actively stabilize the foreign exchange market. The Financial Supervisory Service (FSS) plans to meet with major banks to discourage aggressive marketing of U.S. dollar and foreign currency deposits. The Bank of Korea recently reviewed foreign currency deposit reserve requirements and related interest rates with local banks and announced a temporary plan to pay interest on foreign currency reserves to enhance domestic dollar liquidity and support the won.

Banks, such as KB Kookmin and Woori, have introduced promotional events encouraging currency conversion to the won and lowered interest rates on dollar deposits to discourage holding foreign currency. Regulators are also focusing on insurers, as sales of dollar-denominated insurance products have surged, contributing to speculation and pressure on the won. The FSS, led by Governor Lee Chan-jin, has ordered financial firms to curb excessive marketing of such products and plans to review insurers' internal controls and conduct inspections if necessary.

Military begins deployment of 'monster' Hyunmoo-5 missile

Yonhap | English | News | Jan. 19, 2026 | Geopolitical Conflict and Disputes

South Korea's military has begun deploying the Hyunmoo-5 ballistic missile, a high-power surface-to-surface weapon designed to target underground bunkers. The missile, nicknamed the "monster" due to its size, plays a critical role in South Korea's strategy to deter and respond to potential large-scale attacks from North Korea. The deployment started late last year and is expected to be completed by 2030, during President Lee Jae Myung's administration.

Defense Minister Ahn Gyu-back emphasized the need for a "balance of terror" to counter North Korea's nuclear threats and called for a substantial buildup of conventional strike capabilities, including mass production of the Hyunmoo-5 missile. South Korea, as a Nuclear Non-Proliferation Treaty signatory, cannot possess nuclear weapons and therefore focuses on enhancing its missile arsenal. The country plans to field hundreds of advanced missiles, including upgraded variants of the Hyunmoo-5 currently under development.

The Hyunmoo-5 missile was first publicly revealed in 2023 but most details about its capabilities have remained classified due to strategic sensitivity. South Korea’s emphasis on strengthening conventional strike capabilities reflects its broader efforts to bolster deterrence against North Korea's nuclear and missile programs.

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