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

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S. Korea's economy to grow 2.3 pct next year: S&ampP

Yonhap | English | News | Dec. 12, 2025 | UndeterminedEconomic Growth

S&P Global Ratings projected that South Korea's economy will grow by 2.3 percent in 2026, indicating that the most challenging period for the country is likely over. The credit agency noted that overall credit conditions will remain difficult but expects modest improvement compared to 2025, based on more favorable global economic conditions and eased tariff pressures following a trade deal between South Korea and the United States in October 2025.

The agency highlighted that performance across key industries will vary, with the semiconductor sector expected to show strong results, while chemical companies may struggle due to oversupply and slower-than-anticipated restructuring efforts. S&P also indicated that changes in U.S. policies could impact South Korean firms, and ongoing U.S.-China trade tensions might create new business opportunities for South Korean companies.

Seoul, Tokyo arranging Lee-Takaichi summit in mid-Jan. in Japan's Nara: report

Korea Herald | English | News | Dec. 12, 2025 | Shifting Geopolitical Alliances

South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi are planning a summit in mid-January in Nara, Japan. The talks are expected to take place around January 13-14, with the historic Todaiji Temple in Nara considered a possible venue. Nara Prefecture is Takaichi's home region.

This summit would be Lee's second visit to Japan during his tenure, following a trip to Tokyo in August where he met with Takaichi's predecessor. The leaders aim to maintain positive momentum in bilateral relations through ongoing "shuttle diplomacy," involving reciprocal visits.

Despite efforts to promote future-oriented cooperation, tensions persist due to territorial disputes. Lee's office recently reaffirmed South Korea's sovereignty over the Dokdo islets, rejecting Takaichi's renewed territorial claims. The summit will continue to address both cooperation and historical and territorial issues between the two nations.

경영공백 5개월 못 참아…KAI 노조 "수출입은행장, 즉각 사장 임명하라"

Cannot endure a 5-month management vacancy… KAI labor union demands Export-Import Bank president be immediately appointed as CEO

Digital Daily | Local Language | News | Dec. 12, 2025 | Strikes and Work Stoppages

The Korea Aerospace Industries (KAI) labor union held a rally on December 10 in front of the Export-Import Bank of Korea headquarters in Seoul, demanding the immediate appointment of a KAI president after more than five months of vacancy. Around 100 senior executives participated in the protest, emphasizing the urgency of resolving the leadership gap. The Export-Import Bank of Korea, which holds a 26.41% stake in KAI and is majority government-owned (76.38%), plays a key role in appointing KAI’s president, a role heavily influenced by government personnel decisions despite KAI not being a public enterprise.

Former KAI president Kang Gu-young, who resigned in July, was closely associated with the Yoon Suk-yeol government. Kang stepped down following the inauguration of President Lee Jae-myung, signaling a shift in leadership aligned with administrative changes. The union criticized the repeated upheaval in KAI leadership linked to presidential administrations and called for a consistent, professional, and non-politicized selection process to safeguard national strategic projects and industry competitiveness.

Kim Seung-gu, chairman of the KAI labor union, urged the Export-Import Bank to disclose clear criteria for selecting the president and to make the appointment procedures transparent. The process involves a nominating committee, board resolution, and shareholders’ meeting approval. With Hwang Ki-yeon appointed president of the Export-Import Bank in November, the union stressed that the KAI presidential appointment process should no longer be delayed. The union warned that unless the Export-Import Bank assumes responsibility and acts promptly, their protest actions will continue.

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