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  • AI Projects Overwhelm Companies Amid Administrative Burdens
    AI Projects Overwhelm Companies Amid Administrative Burdens Companies involved in or considering participation in government artificial intelligence (AI) projects are expressing concerns that they are spending more time on administrative tasks than on research and development (R&D) due to a series of calls for proposals and evaluation schedules. Each new solicitation requires the formation of new consortia and the preparation of business plans, and even after selection, companies must undergo repeated evaluations, increasing their burden.According to industry sources, the Ministry of Science and ICT's 'Everyone's AI' initiative is moving forward with a timeline that requires consortia to be formed and proposals submitted about three weeks after an information session.An official from an AI company considering participation in the Everyone's AI project stated, "After the business briefing, we have to recruit participating organizations and adjust roles within just a few weeks. Since different companies are involved in each project, forming a new consortium takes a significant amount of time."Another source pointed out that the lack of clear direction in project requirements adds to the burden on companies. "Although the project names differ, there are often no clear explanations of what differentiating factors are required. We find ourselves guessing the government's desired direction while reading the announcements multiple times to draft our proposals," the source said.The administrative procedures necessary for preparing proposals are also considerable. Last year, the public AI transformation (AX) project required over ten types of documents, including business plans, personal data self-assessment forms, and various confirmations. The business plan must detail annual performance goals and technology development plans, which takes a significant amount of time to prepare.Even after selection, the burden continues. Many projects involve a structure where subsequent support is determined through phased performance evaluations, requiring companies to simultaneously engage in technology development and evaluation preparation.Uncertainty surrounding the projects is another concern for companies. The Everyone's AI initiative is still pending confirmation of next year's government budget. The Ministry of Science and ICT plans to select two to three consortia to operate beta services and then conduct a comprehensive evaluation of performance and usage rates to decide on further support. However, it has not yet been determined whether new participants will be selected if any consortia are eliminated.A representative from the Ministry of Science and ICT explained, "With about four months remaining until the beta service, we plan to clarify the method of subsequent support while advancing the project."While companies agree on the necessity of fostering an AI ecosystem through government support, they collectively emphasize the need for clearer distinctions in roles between projects and a more predictable support system.In a situation where the number of companies capable of developing AI services and R&D personnel is limited, the simultaneous promotion of similar government projects forces the same companies and personnel to participate in multiple solicitations, leading to a dilution of their capabilities in consortium formation, proposal writing, and performance evaluation, which only increases administrative burdens.However, there are also positive assessments of the government's solicitation method. An official from an AI company that has participated in government projects noted, "Many companies have been able to enhance their technology and secure commercialization opportunities thanks to government support. While it is meaningful in terms of expanding opportunities for private sector participation, if the differentiation and operational methods between projects are improved, we can expect positive effects."* This article has been translated by AI. 2026-07-26 16:44:00
  • Genosis AI Healthcare Celebrates Graduation of 35 Experts from AI Academy
    Genosis AI Healthcare Celebrates Graduation of 35 Experts from AI Academy Genosis AI Healthcare, led by Chairman Lee Hee-won, concluded the eighth session of its AI Academy with a graduation ceremony on July 25. The program, aimed at social contribution, has trained 35 experts from various fields, including former and current hospital directors, medical professors, research institute heads, media representatives, and former vice-ministerial officials, through four practical training sessions. The ceremony was held at the International Vaccine Institute (IVI), hosted by Park Sang-cheol, chairman of the IVI Korean Support Committee, who provided the venue and lunch.The Genosis AI Academy was established in December 2022 to assist professionals and organizational leaders in utilizing generative AI in their work. The program has been conducted once or twice a month since its inception, and this eighth session marks another successful graduation. It operates as a social contribution initiative rather than a profit-driven business, gaining popularity among participants over time.Since the first session, the program has been led by Vice Chairman Kang Si-cheol of Genosis AI Healthcare. The eighth session consisted of four classes where participants learned practical skills such as writing, report preparation, and multimedia production using various generative AI tools, including Claude, Gemini, Genspark, Grok, and Suno. The hands-on approach allowed participants to apply AI in their actual work, producing tangible results. Notably, the process of creating papers and presentation materials using over 200 skills developed by Vice Chairman Kang in Claude Co-Work drew significant attention.This session included notable participants such as Park Sang-cheol, head of the Genosis AI Healthcare Research Center and chairman of the IVI Korean Support Committee; Park Kwang-sung, emeritus professor at Chonnam National University Medical School; Lee Myung-cheol, chairman of the Korea Pasteur Institute; Kwon Soon-yong, emeritus professor at Catholic University of Korea Seoul St. Mary's Hospital; Park Jong-hoon, professor at Korea University Medical School; Lee Hyun-seok, director of Seoul Medical Center; and Lim Kyu-sung, senior researcher at Genosis AI Research Institute.Chairman Lee Hee-won stated, "The eighth session has successfully concluded. I sincerely congratulate the participants for sharing new knowledge and insights, joining the new wave of AI healthcare." He added, "This is not just a training program but a meaningful starting point for creating future changes together."Vice Chairman Kang Si-cheol expressed, "Having experts from various fields directly utilize AI and experience its potential is the fastest way to enhance our society's AI capabilities. I feel the greatest sense of fulfillment when I see participants producing results through hands-on practice."Participants responded positively as well. One participant remarked, "In this AI era, I can grasp trends in the related industry and effectively apply the techniques I've learned to my work." Another participant shared, "Thanks to the efficient use of our short weekend time, it feels like a new world has opened up." A graduate who traveled from Gwangju stated, "The valuable lectures made the long journey worthwhile."Genosis AI Healthcare plans to continue sharing educational materials and the latest information with graduates while expanding its AI training programs for professionals as part of its social contribution efforts. 2026-07-26 16:44:00
  • When merits break: Will cockroach movement test Asias youths?
    When merits break: Will cockroach movement test Asia's youths? SEOUL, July 26 (AJP) - The most remarkable thing about India's Cockroach movement is not that it forced the resignation of a cabinet minister. It is that it began with an insult. When a senior judge reportedly dismissed unemployed young Indians as "cockroaches" and "parasites," Generation Z did something previous generations rarely attempted. Instead of rejecting the slur, they adopted it, transforming a satirical Instagram page into a nationwide movement that ultimately compelled Prime Minister Narendra Modi's government to sacrifice Education Minister Dharmendra Pradhan over a scandal involving leaked entrance examinations. The movement amassed about 22 million Instagram followers, underscoring how quickly a satirical page could become national political infrastructure. It also exposed a stark generational imbalance: roughly 40 percent of India's population is under 40, while only about 10 percent of members of parliament fall within that age group. The episode may appear uniquely Indian. It is not. Across Asia, an uncomfortable question is emerging among younger generations: What happens when education no longer guarantees opportunity? The answer increasingly shapes politics as much as economics. For decades, much of Asia operated under a remarkably similar social contract. Study hard. Pass increasingly competitive examinations. Enter a good university. Secure a stable job. Join the middle class. That formula powered Japan's postwar miracle, South Korea's industrial rise, Singapore's technocratic success and, more recently, China's and India's expanding middle classes. Meritocracy became Asia's development model Parents accepted intense educational competition because they believed the reward justified the sacrifice. Governments invested heavily in schools because education produced economic growth. Young people tolerated extraordinary academic pressure because they believed examinations were fair. That faith is beginning to erode. India's medical entrance examination scandal merely exposed the deepest fault line. The cancelled National Eligibility cum Entrance Test, or NEET, affected about 2 million candidates seeking admission to medical colleges. The paper leak was also linked by protest organizers to more than a dozen student deaths by suicide, turning an administrative scandal into a national reckoning over the cost of competitive education. Millions of Indian families devote years—and often enormous financial resources—to preparing for a limited number of university places because higher education remains one of the few reliable routes into the middle class. When examination papers leak, students lose confidence not only in one test but in the proposition that effort determines success. India's labor market makes that sense of betrayal sharper. The International Labour Organization's latest comprehensive employment study found that educated young people accounted for an increasingly large share of the country's unemployed, illustrating the mismatch between expanding access to education and the economy's capacity to absorb graduates. The movement was therefore not simply about testing irregularities. It was about the erosion of the promise that studying hard and competing fairly would deliver upward mobility. Story hits home in South Korea South Korea has long been considered one of Asia's quintessential meritocratic societies. Yet the same bargain is weakening there, even without the street mobilization seen in India. According to the Ministry of Data and Statistics, 48.6 percent, or about 605,000, of Koreans aged 15 to 29 who had completed their education but remained unemployed had been without work for at least one year. That was the highest proportion since comparable data began in 2009. The number out of work for at least three years reached about 241,000, or 19.4 percent, also a record. Those figures describe more than a sluggish labor market. They show the growing distance between educational completion and economic independence. Young Koreans have largely followed the formula prescribed by previous generations. They remain in education longer, collect more qualifications and compete for an increasingly narrow range of secure professional jobs. Yet the transition from university to employment is becoming slower and less predictable. Real income rose only for young people in the richest 20 percent of households, gaining 1.6 percent, while it fell across each of the remaining four income groups, according to recent data. The result suggests that family wealth is increasingly determining whether young adults can withstand prolonged job searches, pursue further qualifications or wait for desirable employment. What was once presented as a competition based on talent and effort is becoming inseparable from parental resources. The economic strain does not end with employment. For many young Koreans, housing has become effectively inaccessible without family assistance, while insecure work delays marriage, childbirth and household formation. South Korea's record-low fertility is therefore not simply a lifestyle choice or a cultural rejection of marriage. It reflects the rising cost of gaining admission to adulthood. The same tension appears in the country's financial markets. As asset prices surged, young retail investors increasingly turned to leveraged exchange-traded funds and margin borrowing in an attempt to close a wealth gap that wages alone could no longer bridge. More than 1.16 million people completed the basic education course required to trade leveraged exchange-traded funds in the first half of this year, about 19 times the number a year earlier. A further 690,000 completed additional training for single-stock leveraged ETFs between April and June. This is meritocracy's financial afterlife: when education and work fail to deliver mobility quickly enough, speculation begins to look like a rational shortcut. South Korea's youth crisis also sits within a broader social contradiction. The country ranks among the world's longest-lived societies, with life expectancy reaching 83.7 years, yet it continues to record the highest suicide rate in the Organization for Economic Cooperation and Development. In 2023, 24.8 people per 100,000 died by suicide, more than double the OECD average of 10.9. The comparison should not be used to reduce suicide to academic or employment pressure alone. But it does illustrate the heavy psychological cost that can accompany an intensely competitive society when conventional routes to security begin to narrow. India's Cockroach movement is a loud expression of frustration. South Korea's version has often been quieter: withdrawal from job searches, delayed family formation, leveraged investment and disengagement from the milestones that once defined adulthood. Different economies, same frustration The symptoms vary across the region. China's young people popularized "lying flat" and later "letting it rot" amid weak graduate employment and slowing economic momentum. Japan's prolonged stagnation produced a "lost generation," many of whom moved between temporary and insecure jobs despite strong educational backgrounds. South Korea's "N-po generation" came to describe young people giving up dating, marriage, childbirth, home ownership and other ambitions as living costs outpaced wages. India's Cockroach generation is the latest and most politically explosive manifestation of the same phenomenon. The promise that education automatically delivers prosperity is no longer self-evident. A generation raised online The Cockroach movement also differs from earlier youth protests because it belongs entirely to the digital age. The movement was organized not through student unions or political parties but through memes, livestreams, Instagram reels and viral videos. Protesters documented demonstrations, interviewed one another and turned internet jokes into political slogans. Its self-mocking recruitment material listed qualifications such as being "unemployed," "lazy," "chronically online" and able to "rant professionally." The humor was not incidental. It allowed young Indians to turn labels normally used to shame them into a shared political identity. It also made the campaign legible to millions who might never attend a party rally or read a political manifesto. Unlike previous protest movements, social media was not merely a communication tool. It became the movement's headquarters, broadcasting network and recruitment office at once. Merit in the age of AI The challenge is becoming more acute as artificial intelligence begins reshaping entry-level employment. Asia's younger generation is being told simultaneously to acquire more advanced skills and to prepare for the possibility that many of the cognitive tasks associated with graduate employment will be automated. That creates a new contradiction. A university degree remains expensive and socially expected, but its economic premium is becoming less certain. Young people are asked to invest more in education even as employers gain technological alternatives to hiring them. This does not mean AI will simply eliminate graduate work. It does mean that governments can no longer rely on expanding education alone as a youth policy. They must also produce credible routes from education into employment, housing and economic independence. Replacing one Indian minister will not repair an examination system, and Korea's youth employment data will not be reversed by a single jobs program. The deeper issue is institutional trust. Young people may accept fierce competition when the rules appear fair and the rewards attainable. They become alienated when success increasingly depends on leaked papers, family wealth, asset ownership or access to shrinking professional networks. For half a century, Asian governments persuaded families that relentless investment in education would produce rising prosperity. That promise helped build modern Asia. The danger now is not simply that the return on education is weakening. It is that younger generations are beginning to believe the competition itself has been rigged. 2026-07-26 16:42:14
  • AI Initiatives Flooding In, Companies Strain Under Repeated Support
    AI Initiatives Flooding In, Companies Strain Under Repeated Support The Ministry of Science and ICT is launching a series of artificial intelligence (AI) initiatives with different goals and roles, yet participation remains concentrated among existing major AI companies, leading to a repetitive structure where the same firms compete across various projects.The 'Everyone's AI' initiative, promoted by the ministry, has officially attracted participation from Kakao and LG Uplus. Other AI specialists, including Upstage, Liner, and Eastsoft, are also exploring participation either independently or in consortiums. Naver, SK Telecom (SKT), and KT are also considering involvement in related projects.In contrast to previous government AI initiatives, the current candidates are largely returning participants rather than new entrants. The companies mentioned as potential participants in Everyone's AI include Kakao, Naver, SKT, KT, Upstage, and Conan Technology. These firms had previously served as lead organizations for the independent AI foundation model (Dopamo) initiative last year. More than half of the candidates for Everyone's AI overlap with those that supported Dopamo.Last year, a total of 15 companies and institutions applied to be lead organizations for the Dopamo initiative. Among them, five teams, including Naver Cloud, Upstage, SKT, NC AI, and LG AI Research Institute, were selected as the initial elite teams. Companies and institutions that did not make it into the elite team later attempted to participate in the specialized AI foundation model (Teukpamo) initiative. Lunit and the Korea Advanced Institute of Science and Technology (KAIST) were chosen as the final lead organizations in the medical and bio sectors, both of which had previously applied for Dopamo but were not selected as elite teams.The repeated participation of these companies can be attributed to the limited number of domestic firms capable of developing large-scale AI models and services. To participate in government projects, companies must possess capabilities such as operating graphics processing units (GPUs), specialized personnel, experience in large model development, and the ability to form consortiums.Lee Seung-hyun, an evangelist at Liner and former director of the AI Platform Innovation Bureau at the Digital Platform Government Committee, stated, "Only companies with GPU capabilities, research personnel, and experience in large model development can participate in government AI projects, which naturally narrows the pool of participating firms. While there are many AI companies in the U.S., only a few, such as OpenAI, Google, and Anthropic, actually lead the market."He added, "Dopamo, Teukpamo, and Everyone's AI are not separate initiatives but rather a structure that connects foundational model development to industrial application and service expansion. As AI competition shifts from individual models to service and ecosystem competition, it is essential to nurture multiple areas together."The Ministry of Science and ICT maintains that despite the apparent similarities between these initiatives, their policy objectives and evaluation criteria differ. For instance, Dopamo supports the development of general-purpose foundational models, while Teukpamo focuses on developing specialized AI models for specific industries such as healthcare and law.The public AI transition (AX) aims to convert public services across various ministries to AI-based systems, while Everyone's AI focuses on building a platform that connects these AI services for public use. Each policy goal differs, from foundational model development to the expansion of services for the public.However, it is noted that there is a need to assess the selection results and the effectiveness of support to prevent the structure of repeated funding for certain companies from becoming entrenched.Cho Seong-bae, a professor at Yonsei University and former member of the National AI Commission, remarked, "While government initiatives clearly provide opportunities for companies, it is necessary to examine how broadly these opportunities are distributed. There may be concerns about the recurring selection of companies receiving government support."* This article has been translated by AI. 2026-07-26 16:40:00
  • AI Initiatives Surge, Straining Companies
    AI Initiatives Surge, Straining Companies South Korea's government, which has declared itself one of the top three nations in artificial intelligence (AI), is pursuing numerous related initiatives. However, more than half of these projects are being conducted in a survival format, leading to increased fatigue among companies. While the government aims to draw public interest, critics argue that the focus on survival-style competitions detracts from meaningful engagement in AI development.According to industry sources, since the start of Yoon Suk Yeol's administration, the Ministry of Science and ICT has initiated at least nine competitive AI R&D, service, and contest projects.Among these, five projects are explicitly designed to reduce the number of participating teams through a phased evaluation process after initial support. These include the Independent AI Foundation Model (IndepAI), AX Innovative Company Creative Technology Development, AI Global Big Tech Cultivation, AI Humanoid, and K-Cloud Technology Development. Three projects are conditional support types, depending on whether they meet specific criteria, and one is a contest format.A notable compressed project is the 'IndepAI,' first announced in July of last year. Five elite teams, including Naver Cloud, SK Telecom, LG AI Research, Upstage, and NC AI, participated. Naver Cloud and NC AI were eliminated, while Motif Technologies joined the second phase evaluation through an additional application. The final results of the second phase evaluation will be announced next month.In September of last year, the 'Specialized Foundation Model Project' for the medical and bio sectors and the 'Public AX Project' supporting AI in the public sector were launched. In January, the 'AX Innovative Company Creative Technology Development' and 'AI Global Big Tech Cultivation' projects began, and recently, a call for proposals for 'Everyone's AI,' aimed at creating AI services for all citizens, is underway.The goals of these projects vary, focusing on general models, specialized models, and public service development. However, the support for graphics processing units (GPUs), consortium formation, and phased evaluation processes are similar. As a result, while the content of the projects differs slightly, the same companies are often involved. Companies participating in multiple projects must prepare similar project proposals and respond to evaluation performance verification.Small AI companies, which often lack sufficient personnel and funding, face increased pressure as they must manage both technology development and evaluation responses. The Ministry of Science and ICT maintains that a competitive approach is optimal given the limited budget and the need to concentrate GPU resources on competitive firms.A ministry official stated, "In a situation where resources such as budget, GPUs, and research personnel are limited, selecting capable project operators through competition is unavoidable. The government's role is to bear the risks until a market is established, after which private entities can grow through competition." 2026-07-26 16:40:00
  • Review of Ray-Ban Meta: Comfortable Wear, AI Challenges in Korean
    Review of Ray-Ban Meta: Comfortable Wear, AI Challenges in Korean "Hey Meta, look and describe this." When I issued the voice command while wearing the glasses, Meta's AI, formerly known as Facebook, described the scenery in front of me within seconds. It recognized not only the food on the table but also the clutter on the drawer, relaying the information audibly. This is the world of smart glasses, where I see alongside artificial intelligence.Starting July 22, South Korea's three major telecom companies, including SK Telecom, began selling Meta's AI glasses, the Ray-Ban Meta.The Ray-Ban Meta is a product co-developed by Meta and global eyewear company EssilorLuxottica. The product features Ray-Ban's iconic styles: Wayfarer, Skyler, and Headliner, and boasts a battery life of up to eight hours.While slightly heavier than regular glasses, they are comfortable for extended wear. After pairing with a smartphone via a dedicated app, users can take photos and videos using a small capture button located on the arm of the glasses. A touchpad on the arm allows users to swipe through music or adjust the volume.Notably impressive is the camera performance, capable of capturing 12MP photos and 3K Ultra HD videos. The clarity is remarkable for a wearable device, making it ideal for travel, vlogging, and everyday documentation. Photos can be transferred directly to a smartphone via Wi-Fi, and uploading to the cloud is also possible.In terms of AI functionality, it responded naturally to English commands, but recognition of Korean voice commands was less effective. To use Korean, additional data needed to be downloaded, but errors prevented access. In English, I was able to converse with the AI while walking, asking real-time questions and translating Japanese signs or menus.The three telecom companies plan to accelerate the expansion of their AI device lineup, starting with the Ray-Ban Meta. SK Telecom has begun sales through its official online store and offline locations. KT has already started selling online and will expand to general dealerships nationwide starting August 3. LG Uplus has also begun selling the Ray-Ban Meta and plans to expand its lineup of wearable devices, introducing products linked to communication services.* This article has been translated by AI. 2026-07-26 16:36:00
  • Housing Prices Diverge in Seoul and Dongtan, Gyeonggi Province
    Housing Prices Diverge in Seoul and Dongtan, Gyeonggi Province Housing prices in Seoul have seen a slight slowdown this month, while the northern districts continue to rise. In contrast, Dongtan in Hwaseong, Gyeonggi Province, recorded a price increase of over 6%, marking the highest rise in the country, indicating a mixed trend in housing prices across the metropolitan area.According to KB Real Estate's report on national housing price trends released on July 26, as of July 13, the average sale price of apartments in Seoul increased by 1.05% compared to the previous month. Although this is a decrease of 0.02 percentage points from last month’s 1.07%, the growth remains in the 1% range.The rise in northern Seoul has been particularly notable, with Jungnang-gu (2.08%) and Gangbuk-gu (2.01%) both exceeding 2%. Other districts such as Seongbuk-gu (1.85%), Nowon-gu (1.60%), Gangseo-gu (1.59%), Seodaemun-gu (1.54%), and Dongdaemun-gu (1.44%) also reported significant increases.In Gyeonggi Province, the upward trend has accelerated. Apartment prices in the province rose by 0.87%, a notable increase from last month’s 0.65%.Specifically, Dongtan in Hwaseong saw a remarkable increase of 6.25%, achieving the highest growth rate nationwide. This follows a 4.16% rise last month, setting a new record for the area.Other areas in Gyeonggi Province also showed strong growth, including Suwon Yeongtong-gu (3.06%), Gwangmyeong (2.52%), Guri (2.29%), Yongin Suji-gu (1.94%), Hanam (1.74%), and Seongnam Jungwon-gu (1.70%).In Incheon, prices turned around from a decrease of -0.09% last month to an increase of 0.04% this month. Nationwide, apartment sale prices rose by 0.41%, an increase from last month’s 0.33%, marking two consecutive months of growth.The high-end apartment market also continued its recovery. The KB Leading Apartment 50 index, reflecting changes in the top 50 apartments by market capitalization, rose by 0.38% compared to the previous month, a larger increase than last month’s 0.14%. Since the end of the tax exemption for multiple homeowners on May 9, prices for high-end apartment complexes have shown a rising trend for two consecutive months.Jeonse prices also maintained an upward trajectory. The average jeonse price for apartments in Seoul increased by 1.34%, slightly down from last month’s 1.43%. Significant increases were noted in Gangdong-gu (2.45%), Seongbuk-gu (2.37%), Jungnang-gu (2.25%), Geumcheon-gu (2.19%), Gangbuk-gu (2.14%), Nowon-gu (1.89%), and Gwangjin-gu (1.68%).Both Gyeonggi Province (0.86%) and Incheon (0.32%) also experienced increases in jeonse prices, with the national average rising by 0.53%.Including apartments, multi-family homes, and single-family homes, the national housing sale price increased by 0.29% compared to the previous month. Apartments (0.41%) and multi-family homes (0.12%) saw increases, while single-family homes remained stable at 0.00%. The national average jeonse price rose by 0.34%, with Seoul (0.81%), Gyeonggi Province (0.66%), and Incheon (0.21%) all continuing their upward trends.Expectations for the market have somewhat diminished. The national sale price outlook index fell by 0.2 points to 107.8, while the Seoul sale price outlook index dropped by 1.3 points to 124.0. The Seoul index had risen for three consecutive months before experiencing a slight decline this month.Meanwhile, the median sale price of apartments in the 11 districts of Gangnam, Seoul, was recorded at 1.625 billion won, with a median jeonse price of 708.33 million won. The average jeonse price was 811.04 million won.The price gap between the top 20% and bottom 20% of apartments, indicated by Seoul's quintile ratio, stood at 6.4, marking a decline for five consecutive months. This is attributed to the relatively strong price increases in areas with a concentration of mid- to low-priced apartments.Additionally, the rise in jeonse prices in Seoul appears to be spreading to Gyeonggi Province. According to KB Real Estate, jeonse prices increased in Dongtan, Hwaseong (0.70%), Guri (0.64%), Gwangmyeong (0.52%), and Hanam (0.44%). This trend is believed to be influenced by the demand for jeonse from those moving from Seoul and the waiting demand for purchases in areas with good accessibility to Seoul.* This article has been translated by AI. 2026-07-26 16:28:00
  • South Korean Companies Accelerate Investments in U.S. Amid AI Boom
    South Korean Companies Accelerate Investments in U.S. Amid AI Boom South Korean companies are reportedly accelerating investments and acquisitions in U.S. firms, fueled by a boom in artificial intelligence (AI).The Financial Times (FT) reported on July 24 that South Korean companies, bolstered by increased cash reserves from the AI surge, are actively pursuing investments and acquisitions in the U.S. to secure advanced technologies and avoid tariff burdens imposed by the Trump administration.According to data from South Korea's Ministry of Economy and Finance cited by FT, direct investment by South Korean companies in the U.S. reached $10.2 billion in the first quarter of this year, more than double the amount from the same period last year. This marks the largest investment in five years. Last year's total direct investment in the U.S. also increased by about 15% to $25.7 billion.Sushil Bhatia, head of M&A for Goldman Sachs in the Asia-Pacific region (excluding Japan), stated, "AI is fundamentally changing the way M&A transactions are conducted globally. If the U.S. is the center of innovation, then South Korea is at the heart of that in Asia." He added, "South Korea is well-positioned to invest in suitable companies across the supply chain, backed by abundant capital."This investment surge is led by Samsung Electronics and SK Hynix, which are considered the biggest beneficiaries of AI infrastructure development. The stock prices of both companies have more than tripled over the past year, and their combined operating profit is expected to reach a record $400 billion this year.Last month, Samsung participated in a $100 million investment in AI data center cooling technology firm Jutacore. In the previous year, it also invested $750 million in AI semiconductor startup Groq.SK Hynix announced plans in January to invest $10 billion in U.S. innovative companies and collaborate with them. Last year, it participated in a $120 million investment in U.S. startup Abecena, which develops optical connection technology to enhance energy efficiency in AI systems.South Korean companies are also continuing to acquire U.S. tech firms. Samsung agreed to acquire the U.S. healthcare platform Xealth last year, while Doosan Robotics acquired an 89.6% stake in U.S. automation firm ONExia in Pennsylvania in 2025.Investment activities are not limited to semiconductors. Financial industry insiders report that South Korean companies in shipbuilding, robotics, biotech, and advanced manufacturing are also considering acquisitions of local firms to address geopolitical risks and enter the U.S. market.Jang Tae-won, co-head of North Asia M&A at JP Morgan, noted, "Just a few years ago, cash-rich Chinese companies were aggressively acquiring Western assets at a premium. However, as U.S.-China relations have changed, Chinese firms are now effectively excluded from acquiring major U.S. assets."He added, "Now is the golden era for South Korean companies in U.S. M&A, driven by strong cash flow, the need for supply chain reshoring, and demands for market access, prompting them to pursue larger and transformative deals."* This article has been translated by AI. 2026-07-26 16:28:00
  • Lee Jae-yong Meets Sam Altman to Strengthen AI Infrastructure Cooperation, Anticipates Ten Years Without a Downturn for K-Semiconductors
    Lee Jae-yong Meets Sam Altman to Strengthen AI Infrastructure Cooperation, Anticipates 'Ten Years Without a Downturn' for K-Semiconductors Lee Jae-yong, chairman of Samsung Electronics, and Sam Altman, CEO of OpenAI, met in the U.S. in a significant move symbolizing the restructuring of the global artificial intelligence (AI) semiconductor supply chain. As U.S.-South Korea cooperation on next-generation AI infrastructure becomes more visible, concerns about a peak-out in the domestic semiconductor industry are expected to ease considerably.According to industry sources on July 26, the collaboration between Samsung Electronics and OpenAI is expanding beyond high-bandwidth memory (HBM) and DRAM supply to encompass the entire value chain, including advanced foundry processes. To operate OpenAI's next-generation super-large AI models, high-performance memory and customized semiconductor manufacturing capabilities are essential. Samsung's turnkey solutions, which provide everything from design to production and advanced packaging, are seen as a key focus of these discussions.The meeting between Lee and Altman is part of efforts to quickly eliminate uncertainties in semiconductor supply and secure stability. For OpenAI, which needs to continue enhancing its large language models (LLMs), securing a large volume of semiconductors is a top priority. This is why there are expectations that a long-term supply agreement (LTA) between OpenAI and Samsung Electronics is imminent amid a global memory supply shortage.If a major LTA is confirmed, Samsung will secure a long-term supply source for high-value HBM and lay the groundwork for expanding orders in the foundry and advanced packaging sectors. This could create synergies by increasing the operational rates of the 2nm advanced foundry line in Pyeongtaek and the advanced packaging (AVP) process in Cheonan.There is growing optimism about an unprecedented 'ten years without a downturn' in the domestic semiconductor industry. Following the 'San Francisco AI Summit,' Samsung entered into a five-year long-term supply agreement with Broadcom and is currently negotiating with several big tech companies for advanced memory supply agreements. While initial contract periods typically last around five years, considering new line expansions, process stabilization, and next-generation chip development cycles, the collaboration is expected to last over ten years.SK Hynix is in a similar situation. Companies like NVIDIA, Microsoft, and Google are offering substantial advance payments to secure HBM production lines and are requesting increased volumes. In its first-quarter earnings report, SK Hynix stated, "Demand from customers for the next three years has already exceeded our production capacity (CAPA)," noting a surge in requests for long-term supply agreements for both sixth-generation HBM (HBM4) and seventh-generation HBM (HBM4E).Experts predict that the expansion of big tech collaborations centered around LTAs led by Samsung Electronics and SK Hynix will significantly alleviate the chronic volatility of the domestic semiconductor industry.Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, stated, "LTAs that involve large advance payments and volumes greatly enhance the profit predictability for domestic semiconductor companies," adding that this could be a decisive factor in breaking the cycle of 'chicken game' that has led to massive losses during past downturns.* This article has been translated by AI. 2026-07-26 16:16:00
  • Lee Jae-yong Meets OpenAI CEO Sam Altman at Company Headquarters
    Lee Jae-yong Meets OpenAI CEO Sam Altman at Company Headquarters Lee Jae-yong, the chairman of Samsung Electronics, met with Sam Altman, CEO of OpenAI, at the company's headquarters in San Francisco, California. The two leaders are tightening their collaboration to build a next-generation AI semiconductor supply chain. According to industry sources on July 26, Lee visited OpenAI's headquarters on July 25 (local time) for a high-level meeting with Altman. This meeting followed the postponement of Altman's planned visit to South Korea in June, prompting Lee to travel to the U.S. for the discussion. The two sides reportedly focused on expanding the supply of high-bandwidth memory (HBM) and advanced DRAM, which are crucial for operating large-scale AI models. There was significant exchange of ideas regarding stable supply measures for semiconductors, including long-term supply agreements (LTA), which had been discussed since Altman's proposed visit to South Korea. They also explored collaboration on manufacturing next-generation AI chips using foundry processes. Samsung Electronics is currently implementing a full-scale introduction of ChatGPT and the AI coding tool Codex across all its employees. There are indications that potential collaboration with OpenAI was also considered during Samsung's AI transformation (AX) process. Since establishing a strategic partnership last October, Samsung Electronics and OpenAI have continued to collaborate on expanding advanced memory supply and building next-generation AI infrastructure. Industry experts anticipate that this meeting in the U.S. will further broaden the scope of technological and supply chain cooperation between the two companies.* This article has been translated by AI. 2026-07-26 16:08:00