Nvidia CEO Jensen Huang, heart, speaks throughout the firm’s GeForce Gamer Pageant in Seoul, Oct. 30. From left are Hyundai Motor Group Government Chair Chung Euisun, Huang and Samsung Electronics Government Chairman Lee Jae-yong. Yonhap
Korea’s synthetic intelligence (AI) push met a decisive second in 2025 as world alliances, nationwide coverage and {hardware} demand aligned to create noteworthy momentum.
Nvidia and OpenAI deepened cooperation with Korea, unveiling plans for large-scale AI infrastructure backed by the federal government and native conglomerates. On the similar time, the federal government elevated sovereign AI to a core nationwide technique by sharply rising budgets, and the Nationwide Meeting handed a complete AI framework regulation set to take impact subsequent 12 months, making Korea the primary nation to implement such insurance policies.
Firms have moved past growing language fashions to develop real-world functions of AI, whereas the {hardware} sector is having fun with a reminiscence supercycle pushed by surging information heart demand. The increase has created provide bottlenecks not solely in AI-specific high-bandwidth reminiscence (HBM) but additionally in typical reminiscence semiconductors.
President Lee Jae Myung poses with attendees of a gathering with OpenAI CEO Sam Altman, fourth from left, on the presidential workplace in Seoul, Oct. 1. From third from left are Samsung Electronics Government Chairman Lee Jae-yong, Altman, President Lee and SK Group Chairman Chey Tae-won. Courtesy of presidential workplace
Deepening ties with world AI giants
Nvidia is positioned on the heart of Korea’s efforts to safe enough AI accelerators. In October, Nvidia CEO Jensen Huang visited Korea for 2025 Asia-Pacific Financial Cooperation conferences, and introduced a plan to produce 260,000 Nvidia Blackwell graphics processing items (GPUs) for the federal government, Samsung Electronics, SK Group, Hyundai Motor Group and Naver.
With the Nvidia GPUs, Samsung, SK and Hyundai Motor plan to empower their manufacturing capabilities with AI factories and digital twin applied sciences. Digital twin is a expertise mirroring real-world entities in a digital setting. Naver will develop the capability of its hyperscale information facilities whereas enhancing bodily AI functions. The federal government plans to deploy the GPUs to help AI improvement throughout corporations and industries, develop sovereign AI basis fashions and construct a nationwide computing heart.
OpenAI CEO Sam Altman additionally visited Korea a number of occasions this 12 months, which resulted in Samsung and SK becoming a member of the Stargate challenge, a $500 billion three way partnership for AI infrastructure within the U.S. As a part of their partnerships, Samsung Electronics and SK hynix will every provide reminiscence chips to satisfy OpenAI’s chip calls for — about 900,000 wafers’ value of high-performance dynamic random-access reminiscence (DRAM) every month.
The deepening ties with Nvidia and OpenAI mark a turning level for Korea’s AI technique. By anchoring its AI ambitions in partnerships with main world gamers, Korea is shifting extra decisively to safe AI infrastructure competitiveness amid intensifying world competitors.
AI Primary Regulation
In January, Korea enacted the Framework Act on the Growth of AI and the Creation of a Basis for Belief, which is about to take impact on Jan. 22 subsequent 12 months, making the nation the primary on this planet to enact such a coverage.
Designed to advertise and regulate the home AI business, the act defines high-risk AI programs; introduces obligations associated to security, transparency and accountability; and establishes a governance framework overlaying areas corresponding to information use, human oversight and legal responsibility.
The act, extensively known as the AI Primary Regulation, is predicted to offer regulatory readability for corporations growing or deploying AI programs in Korea. That is anticipated to assist construct belief in AI applied sciences, cut back authorized uncertainty and speed up AI adoption throughout industries by setting clear guidelines on accountability and threat administration.
Nevertheless, issues have been raised over unclear definitions of high-risk AI, the issue smaller companies and startups might face in complying with the foundations, and ambiguity over labeling necessities for AI-generated content material. Business officers warn that such uncertainties may discourage innovation or gradual commercialization, notably throughout the early phases of implementation.
In response, the federal government is now making efforts to make clear these requirements by way of enforcement decrees and by coordinating between business, authorities and civic teams. Authorities are additionally contemplating grace durations for penalties, together with administrative fines, to permit corporations time to adapt as soon as the regulation takes impact.
Members of the Presidential Council on Nationwide Synthetic Intelligence Technique minimize a cake in celebration of the primary 100 days of the council’s launch in Seoul, Dec. 15. Yonhap
Sovereign AI
An emblem for corporations taking part within the authorities’s challenge to develop Korea’s proprietary synthetic intelligence basis mannequin / Courtesy of Ministry of Science and ICT
With the beginning of the Lee Jae Myung administration in June, Korea has recognized AI as a prime coverage precedence, setting an formidable purpose of turning into one of many world’s prime three AI powers primarily based on AI sovereignty. Lee appointed AI skilled Bae Kyung-hoon as minister of science and ICT and elevated the put up to the extent of deputy prime minister, granting broader authority over AI, semiconductors and digital insurance policies.
The president additionally launched the Presidential Council on Nationwide AI Technique to oversee the federal government’s plans to construct a belt of nationwide AI computing facilities, energy technology services and associated infrastructure, whereas fostering development in companies and industries targeted on neural processing items and non-GPU AI accelerators.
As a part of the push for AI sovereignty, the federal government earmarked 10.1 trillion gained ($6.94 billion) within the nationwide finances for AI, roughly tripling this 12 months’s degree, and launched a challenge to develop a proprietary basis mannequin by way of a aggressive program involving the nation’s main AI mannequin builders.
Via these measures, the federal government seeks to place AI as a strategic nationwide asset, whereas reducing the nation’s reliance on overseas tech corporations.
A robotic arm picks up an object throughout the 2025 Robotic World exhibition at KINTEX in Goyang, Gyeonggi Province, Nov. 5. Yonhap
Actual-world functions and agentic AI
The home AI business has skilled a speedy shift in focus this 12 months, shifting away from growing giant or small language fashions and towards making use of AI to real-world use circumstances.
Main conglomerates have already launched AI chatbots for inside data administration and buyer response, whereas automating workplace doc processing, information evaluation and demand forecasting throughout their operations.
AI can be more and more being utilized in promoting and content material manufacturing, whereas advances in translation and interpretation applied sciences are enabling corporations to develop providers for world prospects. Though nonetheless at an early stage, agentic AI programs are additionally rising, executing numerous duties on behalf of customers corresponding to reserving eating places or lodges and finishing funds.
In manufacturing, bodily AI — the place intelligence is embedded instantly into manufacturing programs — has grow to be one of the consultant software areas, with AI deployed for real-time course of anomaly detection and automatic high quality inspection on manufacturing traces. Mixed with advances in robotics, corporations are accelerating efforts towards broader manufacturing automation.
A high-bandwidth reminiscence 4 chip is displayed at SK hynix’s sales space on the SEDEX 2025 exhibition in Seoul, Oct. 22. Yonhap
Reminiscence supercycle
The speedy growth in AI providers resulted in exponential development of demand for information facilities powered by AI accelerators and reminiscence chips, triggering a supercycle.
The uptrend has been notably centered on HBM, with reminiscence chip makers corresponding to Samsung Electronics and SK hynix struggling to maintain tempo with demand even whereas working manufacturing at full capability.
This provide bottleneck has pushed HBM costs greater, with the businesses reportedly elevating the provision costs of HBM3E chips by about 20 %. On condition that the 2 reminiscence giants are set to start mass manufacturing of next-generation HBM4 subsequent 12 months, the truth that costs for present technology merchandise stay excessive is taken into account uncommon.
As reminiscence makers focus their manufacturing capability on HBMs, costs of general-purpose DRAM merchandise have additionally risen. In accordance with market tracker TrendForce, contract costs for DRAM surged about 420 % this 12 months, leaping from $3.75 in January to $19.50 in November.
The influence is predicted to spill over into the costs of different computing units, corresponding to smartphones.
Analysts are nearly sure that each Samsung Electronics and SK hynix will get pleasure from strong earnings in coming months. In the meantime, the market’s consideration is now shifting towards how the AI pattern will profit different chips, corresponding to low-power reminiscence, application-specific built-in circuits, system semiconductors and NAND flash reminiscence.
