AGP Executive Report

AI and Chips: South Korea’s October exports hit a record $115.3 billion, with chip shipments soaring 259% on AI demand. OpenAI CEO Sam Altman met Samsung and SK leaders to discuss AI chips, memory and data centers, while Samsung’s Lee Jae-yong visited its advanced-packaging lab in Japan. Cybersecurity: South Korea ranks fifth worldwide for internet-exposed industrial control devices, raising concerns about attacks on factories and infrastructure. Physical AI: Seoul and Seoul National University plan a testing hub for home and care robots, with safety trials set for 2027. Clean Tech: Korean researchers developed car grilles that capture at least 95% of fine particles. Auto Market: Chinese EV sales are challenging Korean automakers’ long-held 70% share of their home market.

Chip Boom: South Korea’s exports surged 93.7% year over year to a record $115.3 billion in October, led by semiconductor shipments that jumped 259.4% to $56.4 billion as AI infrastructure spending drove demand. AI at Work: A former Kakao executive will lead a new government team building public AI services, while HD Hyundai Robotics and Palantir plan to develop industrial physical-AI tools. At a Seoul business forum, Naver and Siemens leaders urged companies to move beyond pilots and track productivity gains. Korea-Germany Tech Ties: Leaders at the Asia-Pacific Conference of German Business called for deeper cooperation in AI, semiconductors, batteries and resilient supply chains. Cleaner Roads: South Korean researchers say retrofit grilles for ordinary cars captured at least 95% of fine particles in tests, with a companion device designed to trap brake dust. Submarine Technology: Hanwha Ocean says it has developed South Korea’s first domestically made submarine horizontal-launch system, replacing an imported component.

AI and Chips: Sam Altman met Samsung leaders in Yongin and SK Group chairman Chey Tae-won in Seoul, with talks focused on AI infrastructure and memory-chip supply. Samsung warns the AI memory crunch could worsen through 2027, even as doubts about returns on AI spending hit Korean tech shares. Energy and Robotics: At a forum in Jeonbuk, Hyundai Motor Group outlined plans for an AI and robotics hub in Saemangeum, backed by a planned 8.9 trillion won investment in projects including solar power, hydrogen and a data center. Security: North Korea displayed more than 30 types of drones and called for faster development of unmanned aircraft. Microsoft says North Korean hacking units are using AI; blockchain firms suspect a North Korean group was behind the record Binance theft. Research: A new polymer electrolyte helped sodium batteries retain 90% of capacity after 1,000 cycles. KAIST researchers also developed an antibody candidate aimed at cancer-related wasting.

Cybersecurity: Binance says it will cover losses from a suspected $6.3 billion hack, with investigators pointing to a North Korean group; about $3 billion has been frozen. AI & Chips: Nvidia’s investments across AI firms—and its data-center partnership with SK Group—are renewing questions about an AI bubble. South Korean chip stocks slumped as investors questioned heavy AI spending, despite record earnings. Medical Research: KAIST researchers developed an antibody candidate aimed at easing cancer-related wasting, a debilitating condition that nutrition alone cannot reverse. Defense Technology: North Korea displayed new stealth and attack drones and called for faster advances in unmanned systems, including AI-powered weapons. Shipbuilding: Hanwha Defense USA won a $269 million contract for a U.S. Navy landing ship, its first such order since acquiring Philly Shipyard. Electric Vehicles: Hyundai’s IONIQ 3, designed for European buyers, reached the final seven for the 2027 European Car of the Year award.

Chip Markets: South Korea’s KOSPI fell 3.5% Friday as AI-spending worries battered technology shares. Samsung and SK hynix slid despite strong results, including Samsung’s record AI-driven quarterly profit. AI Infrastructure: Hyundai Motor Group is advancing its $6.3 billion Saemangeum AI hub, with the first data-center units expected to launch next month. Defense Technology: Malaysia received its first two South Korean-made FA-50M fighter jets, the start of an 18-aircraft order from Korea Aerospace Industries. Cybersecurity: Microsoft says several North Korean hacking groups have made AI a routine part of their operations. Battery Research: Chonnam National University researchers developed a more durable, non-flammable electrolyte for sodium-metal batteries. Robotics: Hyundai demonstrated parking robots at a Korean apartment complex, while Seoul’s BIGWAVE SHIFT summit explored deploying AI in industrial robotics.

AI Investment: Nvidia plans to invest $1 billion in Naver, becoming its third-largest shareholder and deepening a partnership focused on AI computing. Hyundai Motor Group is also moving ahead with an AI data center in Saemangeum, with five affiliates backing the project and construction targeted to begin in 2027. Semiconductors: Samsung reported record AI-driven quarterly earnings, while SK hynix says memory shortages could persist through 2030. But a global tech sell-off, sparked by worries about the returns on heavy AI spending, sent the KOSPI sharply lower. Robotics: Hyundai demonstrated apartment parking robots that retrieve cars in about three minutes, a first for a Korean residential complex with more than 50 spaces. Biotechnology: GC Biopharma and Hanmi Pharmaceutical licensed their experimental Fabry disease treatment to BioMarin in a deal worth up to $475 million. Defense Technology: North Korean leader Kim Jong Un called for faster expansion of drone and AI weapons as state media reported tests of drones, missiles and rocket launchers.

AI Chips: Samsung posted a record 107.4 trillion won quarterly operating profit, up 783% year over year, as AI memory demand surged. But investors were unimpressed by its shareholder-return plans, and the company warned shortages could last through 2028; SK Hynix expects tight supply through 2030. AI Infrastructure: Brookfield will finance up to $9 billion for Naver’s planned AI factory in South Korea, with Nvidia supporting the project. Biotech Manufacturing: Merck opened a €300 million bioprocessing center in Daejeon, expanding regional production capacity for materials used to make biologic medicines. Korean Startups: AI-chip maker FuriosaAI raised 820 billion won at a 3.8 trillion won valuation to tackle data-center power demands. App Store Rules: South Korea fined Google and Apple a combined 63.7 billion won over app payment practices; both companies are challenging the penalties.

AI Chip Boom: Samsung Electronics posted record third-quarter operating profit of 107.44 trillion won, up 783% year over year, with its semiconductor division generating nearly all of it. SK hynix also reported a profit surge and says AI-memory shortages could last until 2030. Homegrown AI Chips: Seoul-based FuriosaAI raised $620 million at a $2.9 billion valuation to scale energy-efficient processors aimed at data-center inference. App Store Rules: South Korea fined Google and Apple a combined 63.7 billion won for app-payment practices and delayed reviews, and ordered them to allow external payment links. Cybersecurity: A fresh wave of attacks has hit South Korea’s financial sector, sharpening concern over vulnerabilities as AI makes large-scale hacking easier.

AI Chip Boom: SK hynix reported record third-quarter revenue of 104.6 trillion won and operating profit of 83.3 trillion won as AI demand drove profits up more than sevenfold. The company expects memory shortages through 2030, with over half its 2027–28 output already committed, and plans a 100-trillion-won shareholder return. App Store Crackdown: South Korea fined Google and Apple a combined 63.7 billion won over payment practices, escalating scrutiny of their app markets. Cybersecurity: Three South Korean financial firms, including crypto exchange Bithumb, reported data breaches, while a separate report said a university researcher was indicted over allegedly stealing Samsung EUV chipmaking technology. Research and AI: KAIST researchers developed a neural chip that tracks how an Alzheimer’s drug reshapes brain chemistry in real time. The government also plans to deploy 1,700 AI robots in the public sector next year.

AI Chips: SK hynix reported record third-quarter revenue of 104.6 trillion won and operating profit of 83.3 trillion won, up 632% year on year, as AI demand drives a memory-chip shortage it expects to last until 2030. Cybersecurity: Bithumb, Daishin Securities and Mirae Asset Global Investments reported breaches, adding to a wave of attacks affecting 16 Korean financial firms. Power Grid: LS Electric will showcase HVDC technology and AI data-center power systems at BIXPO 2026 as electricity demand grows. Undersea Networks: LS Marine Solution and SK Broadband are setting up an emergency repair system for the 10,500-kilometer SJC2 cable linking seven Asian countries. Public-Sector Robotics: South Korea plans to deploy more than 1,700 AI robots across public agencies next year, giving domestic makers real-world testing grounds.

Chip Economy: South Korea’s GDP grew 1% in the third quarter, powered by semiconductors, as Samsung and SK hynix shares surged on renewed AI optimism. The Bank of Korea warned that a slowdown in AI spending could put up to $100 billion in chip exports at risk. AI Research: Korean researchers say a new robot-memory architecture improved task success by 24 points, suggesting better memory—not just larger language models—could boost performance. Cybersecurity: Lazarus hackers reportedly exploited South Korean security software to deliver malware using post-quantum encryption, highlighting risks in widely used tools. AI Workforce: SK’s new two-year, non-degree AI program drew about 4,000 applicants for an information session planned for 130 people. Nuclear Technology: Hyundai Engineering signed an agreement with U.S. firm NANO Nuclear to help advance a microreactor project at the University of Illinois and explore future deployments.

Chip-Led Economy: South Korea’s GDP grew 1.0% in the third quarter, beating forecasts on strong chip exports and investment, but household spending fell. The Bank of Korea warned exports could come in $50 billion to $100 billion below earlier forecasts if U.S. AI spending slows, trimming 2027 growth by 0.4 percentage points. Energy Storage: LG Energy Solution signed a non-binding deal targeting 2 GWh of battery storage supplies to Energix projects in Europe and North America over two years. Consumer Tech: Samsung faces a tentative 20 billion won fine after regulators said it advertised Galaxy devices’ gaming performance without disclosing software limits that could slow games. Clean-Tech Research: Korea Institute of Energy Research scientists raised catalyst utilization to 82% with a method that deposits active material selectively, potentially reducing waste. AI and Jobs: The BOK says chip-led growth and AI are weakening job prospects for young people, pushing more into temporary and daily work as stable entry-level hiring lags.

AI Ecosystem: Chinese models underpinned 49.3% of AI models released by South Korea-based Hugging Face developers from January to August, a study found. Korean models accounted for 14.9%, highlighting the challenge for local developers to build on homegrown tools. Chip Race: Samsung reportedly shipped 12-layer HBM4 memory to Nvidia in February and plans 8-layer versions for 2027. Separately, Samsung says its Exynos 2700 outperforms a rival flagship processor by 20%, while SK hynix is advancing its U.S. AI-memory plant. Cybersecurity: Police arrested a hacking group accused of using AI to breach 60 companies; reports say it stole millions of records and demanded just $210 in ransom. Battery Research: Hanbat National University researchers found that deliberately disordering a cobalt-free lithium-rich cathode improved capacity and stability. It retained about 90% of its initial capacity after 50 charge cycles without losing voltage.

AI Cybercrime: Seoul police arrested a 32-year-old accused of using generative AI to hack more than 90 organizations, steal 8.2 million records and extort victims. Six alleged accomplices are also under investigation. Chip Race: Leaked benchmarks suggest Samsung’s upcoming Exynos 2700 could outperform Qualcomm’s latest flagship processor in some tests, but the figures have not been independently verified. Battery Materials: L&F says it has begun South Korea’s first mass production of lithium iron phosphate cathode materials, with annual capacity of 30,000 tonnes, diversifying a supply chain dominated by Chinese makers. AI Infrastructure: LS Eco Energy plans a Vietnam factory for ultracapacitors used in AI data centers, targeting production in 2027. South Korea will also provide 200 GPUs to 15 university labs for AI research. Smart TV Privacy: A researcher alleges Samsung TVs collect viewing and sound-event data for targeted advertising; the claims have not been independently confirmed.

AI Research: South Korea will provide 200 GPUs to 15 university labs from next year to support research in fields including semiconductors, biotechnology and space. AI Independence: A report says nearly half of new Korean AI services rely on Chinese foundation models, raising questions about local control of core technology. Chipmaking: Merck has opened a South Korean molybdenum facility to supply materials for next-generation chip production. Cybersecurity: South Korea raised its alert over a critical PHP flaw as attacks targeted vulnerable websites. Industrial Tech: LG’s new heat-pump system at a Daegu paper mill recycles waste heat, with projected annual energy-bill savings of 2.5 billion won. Smart Shipbuilding: HD Hyundai and U.S. partner Kiewit plan to build a smart shipyard on the Gulf Coast, targeting operations by 2029.

AI Readiness: South Korea has joined the top tier of AI-ready economies, alongside Japan, according to a new BCG report citing domestic model development and investment in computing capacity. Chip Policy: Hopes for a semiconductor-sector exemption from the 52-hour workweek have stalled; President Lee has directed officials to revise existing rules instead of pursuing a special law. Advanced Materials: Merck is adding a South Korean facility for a molybdenum precursor used in advanced chipmaking, aiming to strengthen local supply and meet AI-driven demand. Storage Chips: SK hynix is developing SSD controllers with more than 100 compact processors to handle data transfers with lower power use and chip area than general-purpose CPUs. Shipbuilding: HD Hyundai and U.S. contractor Kiewit plan smart shipyards in Texas and California, targeting operations in 2029. Foldables: Samsung is set to unveil the China-exclusive Galaxy W27 on Oct. 29, with a blue-and-gold design.