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  • Samsung and Naver Enter European Sovereign AI Market Through MistralAI
    Samsung and Naver Enter European Sovereign AI Market Through MistralAI Samsung Electronics and Naver have jointly entered the European sovereign artificial intelligence (AI) market through the French company MistralAI. This move is seen as a significant addition to the global AI competition, traditionally dominated by the U.S. and China, with South Korean companies establishing a third pillar centered in Europe.According to the IT industry on September 9, Samsung Electronics and Naver Cloud formed a partnership with MistralAI during a Korea-France business roundtable held at the Élysée Palace in Paris on September 8.Samsung Electronics signed an investment agreement with MistralAI under the name of Vice President Lee Jong-myung, while Naver agreed to explore joint global market entry strategies based on their partnership targeting the sovereign AI market.The investment led by Samsung Electronics is part of MistralAI's Series D funding round, raising €3 billion (approximately 4.7 trillion won). This is the largest equity investment ever secured by a European tech company, pushing MistralAI's valuation beyond €21 billion (about 33 trillion won). Samsung led the round in collaboration with the EU's ScaleUp Europe Fund and existing investor PSG Equity, with new investors Advent and the Grand Duchy of Luxembourg joining, while ASML, NVIDIA, and Salesforce Ventures participated as existing investors.Samsung's investment goes beyond mere equity acquisition. MistralAI is expanding its business scope beyond model and inference services to include its own computing infrastructure. As a supplier of semiconductors and memory, Samsung stands to benefit directly as demand for AI infrastructure in Europe grows. Analysts in the investment banking sector suggest that this round is more of a strategic investment aimed at securing semiconductor demand due to the expansion of AI infrastructure in Europe rather than just a financial investment.Naver's approach differs from that of Samsung. Naver Cloud had already established a comprehensive partnership with MistralAI in the manufacturing AI sector on July 8. This recent agreement extends their collaboration beyond manufacturing to encompass the entire global sovereign AI business. MistralAI has built a strong reference base with major European manufacturers such as Airbus, BMW, and ASML, and Naver plans to integrate its cloud infrastructure with these references to achieve success in domestic manufacturing before expanding into global markets.When viewed together, the two agreements reveal a dual-track strategy for South Korean companies entering Europe, focusing on capital and business. Samsung's strategy involves securing access to MistralAI's growth and semiconductor demand through equity investment, while Naver aims to transplant proven industrial AI use cases validated in Europe into domestic and international markets through cloud and infrastructure collaboration. This structure allows for simultaneous entry into the European market through different axes of semiconductor hardware and cloud software with the same partner.MistralAI is recognized as a leading independent supplier representing Europe in the AI model market, which has been dominated by U.S. tech giants like OpenAI and Google, as well as Chinese companies like Alibaba. With Samsung and Naver combining their capital and business interests with MistralAI, South Korea is positioning itself to expand its own collaborative axis outside the U.S.-China-centric AI competition, leveraging its semiconductor and infrastructure competitiveness.Lee Jong-ho, a professor at Seoul National University and former Minister of Science and ICT, stated, “It is very appropriate for South Korea to collaborate with a leading European company to effectively compete in the AI sector without necessarily excluding or countering the U.S. and China. The important thing is to establish a third-tier AI capability.” 2026-09-09 16:16:00
  • Families of Missing Koreans in Nepal Demand Search Resumption from KDRT
    Families of Missing Koreans in Nepal Demand Search Resumption from KDRT As nine South Koreans remain unaccounted for following severe flooding in Nepal, their families held a press conference on September 9, urging the Korea Disaster Relief Team (KDRT) to resume search efforts. The KDRT announced the previous day that it had no plans for search activities that morning, citing the Nepalese authorities' transition to a search-and-rescue conclusion phase.The families criticized the KDRT, stating, "They did not even fulfill the promised 10-day mission period before withdrawing early." They further accused the KDRT of declaring the search over under the guise of safety, without conducting any substantial ground searches.While the KDRT requested the Nepalese military to conduct ground searches in areas of interest, the military has consistently denied these requests. However, the Nepalese authorities shifted their stance, allowing seven KDRT members to conduct aerial drone searches and ground searches around the powerhouse, Yellow Bridge, and the main camp area the day before. Despite this, the ground search in the areas of interest was limited to just one day.Meanwhile, the KDRT, which was dispatched to the region on September 2, successfully rescued one Chinese survivor but has yet to locate any missing South Koreans. The KDRT's mission is set to expire on September 11, with no plans for an extension reported as of now. 2026-09-09 16:16:00
  • Hite Jinro to End Operations at Iksan Plant, Consolidate Production in Jeonju
    Hite Jinro to End Operations at Iksan Plant, Consolidate Production in Jeonju Hite Jinro will cease production at its Iksan plant in North Jeolla Province and consolidate operations at its Jeonju facility. This decision comes amid a decline in alcohol consumption and aims to streamline production by closing an aging facility and enhancing the efficiency of existing operations. According to a report filed with the Financial Supervisory Service on September 9, Hite Jinro has decided to end production and operations at the Iksan plant on October 16. The company stated that this move is part of efforts to optimize production operations, taking into account the aging of the plant and equipment as well as operational conditions. Established in 1957 as the former Bobae Soju plant, the Iksan facility has been a production hub for PET soju products, including distilled spirits. The Jeonju plant primarily produces beer brands such as Hite, Terra, and Kelly. Last year, the Iksan plant generated sales of 42.1 billion won, which represents 1.68% of Hite Jinro's total consolidated revenue of 2.4986 trillion won. Hite Jinro indicated that production volumes from the Iksan plant will be transferred to the Jeonju facility, ensuring no impact on product production and supply. Production equipment will also be gradually relocated to the Jeonju plant. Employees from the Iksan facility will be transferred to the Jeonju plant to maintain employment. A Hite Jinro official stated, "After a comprehensive review of the production conditions at the Iksan plant and future production competitiveness, we decided to halt operations and consolidate production functions at the Jeonju plant." When the Iksan plant was established, the surrounding area was primarily agricultural land on the outskirts of the city, but it has since transformed into a residential area with large apartment complexes. According to Hite Jinro, this transition has led to ongoing noise complaints, and the aging facilities and lack of storage space have made it difficult to expand production capabilities. Hite Jinro believes that consolidating production functions at the Jeonju plant, which has the necessary production facilities and infrastructure, will be more efficient. A company representative noted, "We expect to enhance production efficiency and establish a stable production base by utilizing existing production facilities and infrastructure." This restructuring of production sites aligns with Hite Jinro's recent efforts to improve cost efficiency. The company's consolidated revenue for the second quarter of this year was 618.6 billion won, a 4.3% decrease from the same period last year, while operating profit rose by 0.7% to 64.9 billion won. The company explained that despite a contraction in the alcohol market, it has defended profitability through cost efficiency and sound management. By business segment, there was a significant disparity in performance between soju and beer. In the second quarter, soju sales increased by 0.1% to 382.7 billion won, with operating profit rising by 18.4% to 58.2 billion won. In contrast, beer sales fell by 15.3% to 176.3 billion won, and operating profit dropped by 29.2% to 8.3 billion won. Overall sales for the first half of the year totaled 1.2094 trillion won, with operating profit down 4% to 120.9 billion won compared to the same period last year. * This article has been translated by AI. 2026-09-09 16:12:00
  • ETF Market Slows as Stock Prices Decline, Listings Halve
    ETF Market Slows as Stock Prices Decline, Listings Halve The excitement surrounding new exchange-traded fund (ETF) launches has cooled. In the first half of the year, the KOSPI index surpassed the 9,000 mark, leading to a surge in new ETF listings. However, as the stock market has recently dropped nearly 30% from its peak, the pace of new listings has significantly slowed.As of September 9, the Korea Exchange reported a total of 1,168 domestic ETF listings, a modest increase of 2.73% (32 funds) from 1,136 on June 8. This is a stark contrast to the 5.97% (64 funds) increase seen from March to June, indicating a marked slowdown in new listings.This trend is attributed to the sluggish stock market. With increased volatility and dwindling trading volumes, new ETFs are struggling to attract capital, leading to a stagnant market. The stagnation has also impacted the overall growth of the ETF market. The total market capitalization of ETFs, which was approximately 470.125 trillion won on June 8, has decreased to about 456.063 trillion won as of September 9, a drop of 14.621 trillion won (2.99%) over three months. During the same period, the total number of outstanding shares fell from approximately 31.127 billion to 29.396 billion, a decrease of 5.84%, confirming a trend of capital outflow from the market.There has been a wave of delistings of unpopular and small-scale ETFs. So far this year, 22 ETFs have entered the delisting process. Notably, in the last three months alone, 13 funds, including 'PLUS Global AI Infrastructure,' 'TIME U.S. Dividend Dow Jones Active,' and 'VITA MZ Consumption Active,' have been removed. The decline in trading volumes due to the market downturn has made it increasingly difficult for 'mini ETFs' with assets under 5 billion won to cover liquidity provider fees and listing maintenance costs, prompting fund managers to undertake voluntary restructuring.Industry insiders expect this trend of slowing listings to continue until the stock market direction becomes clearer. A representative from an asset management firm noted, "The process from ETF planning to listing review typically takes 2 to 3 months. However, with the recent increase in market volatility, fund managers are focusing on risk management rather than aggressively launching new products. A strategy centered on selecting and concentrating on high-quality representative products is likely to prevail." 2026-09-09 16:04:00
  • KOSPI Recovers 7000 Points After 34 Trading Days, Boosted by AI and Semiconductor Stocks
    KOSPI Recovers 7000 Points After 34 Trading Days, Boosted by AI and Semiconductor Stocks The KOSPI index has reclaimed the 7000-point mark for the first time since July 23, recovering after 34 trading days. On September 9, the index closed at 7051.64, up 1.40% from the previous trading day, driven by gains in artificial intelligence (AI) and semiconductor stocks. Despite external challenges such as rising oil prices from the Middle East and increasing U.S. Treasury yields, institutional investors' net buying of over 900 billion won absorbed significant selling from individual investors.According to the Korea Exchange, individual and foreign investors sold a net 2.4971 trillion won and 170.2 billion won, respectively, while institutions purchased a net 900.5 billion won. The KOSDAQ also rose, closing 2.28% higher at 830.37.Semiconductor stocks led the market's rise, with the Philadelphia Semiconductor Index (SOX) increasing by 1.3% overnight, marking its fourth consecutive day of gains. SK Hynix saw a 3.51% increase, fueled by ongoing expectations for AI growth and memory demand, which also benefited companies like Samsung Electro-Mechanics, which rose by 2.48% as part of the AI infrastructure value chain.According to Kang Jin-hyuk, a researcher at Shinhan Investment Corp, "As top-down and bottom-up factors are in a tug-of-war, we saw a rebound in buying following the previous day's decline, alongside strong performance in AI infrastructure. The momentum from GPT-6 Astra's memory continues, leading to strength in the AI value chain centered around Samsung Electronics and SK Hynix."The upward trend that began in semiconductors spread across various sectors. Stocks in secondary batteries, such as Samsung SDI (up 8.30%) and LG Energy Solution (up 6.46%), gained on expectations of benefiting from U.S. measures against Chinese battery companies. Additionally, Hanwha Ocean's announcement of being selected as the preferred bidder for a 680 billion won Thai frigate project boosted shipbuilding stocks, while rising oil prices led to gains in refining and chemical stocks like SK Innovation (up 11.23%) and S-Oil (up 4.08%).Market analysts believe that despite ongoing external uncertainties, the performance and demand momentum of AI-related stocks will provide upward momentum for the domestic stock market. They are particularly focused on whether the KOSPI can stabilize above the 7000-point level as sector-specific positive news leads to a rotation of investments.Lee Kyung-min, a researcher at Daishin Securities, stated, "Despite unstable external conditions, the growth potential and demand momentum of AI have acted as upward pressure on related sectors. The rotation of investments based on sector-specific positive news has led to a differentiated market performance."In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1336.1 won, down 9.5 won from the previous trading day.* This article has been translated by AI. 2026-09-09 16:04:00
  • KOSPI tops 7,000 as fiber trade lifts Seoul and Tokyo
    KOSPI tops 7,000 as fiber trade lifts Seoul and Tokyo SEOUL, September 09 (AJP) - A fiber-optic supply contract signed in the United States reshaped trading across Northeast Asia on Wednesday, lifting cable and wire makers in both Seoul and Tokyo. The rally carried South Korea's benchmark KOSPI to its first close above 7,000 since July 23. The KOSPI rose 97.12 points to 7,051.64, a gain of 1.4 percent. The KOSDAQ, South Korea's secondary board for smaller and technology-focused companies, climbed 18.49 points to 830.37, up 2.3 percent. Retail investors sold the whole way up. Individuals unloaded a net 2.2875 trillion won ($1.71 billion) on the main board. Foreign investors turned seller for the first time in five sessions, shedding 435.0 billion won ($325.5 million) to snap a four-session buying run that had underpinned September's recovery. Institutions bought a net 941.7 billion won ($704.7 million). The trigger came from outside all three markets. U.S. glassmaker Corning said it had signed a long-term optical fiber supply agreement with Verizon, according to Japanese market wire Fisco. The deal covers more than 80 million miles of high-density fiber from 2027 through 2032, a multi-year order worth billions of dollars. Corning shares rose 7.5 percent in New York. Tokyo moved first. Furukawa Electric, Japan's second-largest wire and cable maker and a supplier of data-center fiber, jumped 12.6 percent to 4,129 yen. Gaon Cable rose 16.7 percent to 265,000 won ($198.3), on expectations for bus duct and power distribution cable used inside artificial intelligence data centers. Electrical products led KOSPI sectors, up 7.2 percent. The same trade ran through Shanghai in its rawest form. The Shanghai Composite added 17.43 points to 3,957.98, up 0.4 percent, with copper producers leading. Jiangxi Copper gained 2.0 percent to 49.49 yuan and Zijin Mining 1.7 percent to 34.42 yuan. Copper settled at $14,737.00 a metric ton on Sept. 8, up $197.00. Underneath the cable bid, South Korea's memory chips did the heavy index lifting, and they did it unevenly. SK hynix rose 3.5 percent to 1,856,000 won ($1,388.8). It touched 1,883,000 won intraday. Samsung Electronics did not move at all, closing unchanged at 269,500 won ($201.7). That gap is the session's quiet signal. Traders read the day's chip bid as high-bandwidth memory demand rather than a broad memory upcycle, and SK hynix is the direct expression of it. Batteries provided the other leg. SK innovation surged 11.2 percent to 153,500 won ($114.9), its fourth double-digit move in seven sessions, with the secondary battery production theme up 8.7 percent. Tokyo did not hold its gains. The Nikkei 225 was up 0.4 percent at the morning close before fading to end down 126.55 points at 65,142.78, a loss of 0.2 percent. Rising oil and caution ahead of U.S. inflation data offset the cable rally. SoftBank Group rose 3.9 percent to 6,810 yen and trading house Mitsubishi Corp. 2.3 percent to 5,038 yen. The won firmed against the dollar, quoted at 1,336.40 by Hana Bank at 3:37 p.m., 5.10 won stronger than the previous session. AJP Takeaways: - KOSPI closes above 7,000 for first time since July 23, rising 1.4 percent as cable, AI infrastructure, memory chip and battery shares rally. - Corning’s long-term fiber deal with Verizon sparks a Northeast Asia cable trade, lifting Furukawa Electric in Tokyo and Gaon Cable in Seoul on AI data-center demand hopes. - SK hynix leads the chip move while foreign investors sell, signaling selective HBM demand and leaving the durability of the rally tied to domestic buying, U.S. inflation data and oil prices. 2026-09-09 16:01:39
  • Jang Dong-hyuk Calls for Special Investigation into Jeju Missing Persons Case
    Jang Dong-hyuk Calls for Special Investigation into Jeju Missing Persons Case Jang Dong-hyuk, the leader of the People Power Party, urged on September 9 to initiate discussions on the introduction of a special prosecutor to investigate the 'false conclusion' of the Jeju missing persons case. With the abolition of the prosecution office just over 20 days away, he emphasized the need for legislative efforts to restore supplementary investigation powers amid concerns over a gap in police investigation authority.Speaking at a forum on 'Public Safety and Control of Police Investigation Authority' hosted by his party's policy committee, Jang stated, "In 24 days, the prosecution office will disappear in South Korea, leaving the safety and lives of the public solely in the hands of the police."He explained, "The principle of our criminal justice system is that the prosecution reviews police investigations. This is the best way to protect citizens from crime and prevent wrongful victimization." He criticized, saying, "If the prosecution is dismantled on October 2 and supplementary investigation powers are abolished, the police will be able to conceal cases at will."Jang also pointed out the potential for inadequate investigations due to the expanded police investigation authority. He noted, "The number of cases closed without prosecution by the police increased from approximately 389,000 in 2021 to 596,000 last year, a rise of about 50%. The number of cases sent to the prosecution due to victims' appeals has more than doubled," asserting that this indicates the police misjudged one out of every ten closed cases.He expressed concern regarding the ongoing investigation into the 'false conclusion' of the Jeju missing persons case, stating, "I worry whether this investigation can be completed within 24 days," referring to the recent searches conducted by the Jeju District Prosecutors' Office at the National Police Agency and local police stations.Jang called for the introduction of a special prosecutor, saying, "The National Assembly should begin discussions on the introduction of a special prosecutor to clarify the case, even if the prosecution cannot complete the investigation within 24 days. If any other evidence is found during the search, we must uncover the truth through a special prosecutor."He added, "I will fight to protect the public from inadequate police investigations and gaps in control, ensuring that the voices of wronged victims are not buried and that effective measures are implemented." Lim I-ja, chair of the policy committee, also stated, "We will actively pursue the legislative and institutional measures necessary to restore the direct supplementary investigation powers of prosecutors."Additionally, Jang continued his criticism of the Lee Jae-myung administration, stating, "The government of Moon Jae-in and Lee Jae-myung, which granted investigation authority to the police and abolished the prosecution's investigative command, is the true culprit in this case. This government has ultimately abandoned the lives, safety, and property of the people."* This article has been translated by AI. 2026-09-09 16:00:10
  • Mirae Asset Securities Product Strategy Focuses on Stability and Diversification
    Mirae Asset Securities' Product Strategy Focuses on Stability and Diversification 박희찬 대표가 올해 새로 맡은 상품지원부문은 증권사 상품 라인업을 구성하는 일종의 상품기획자(MD) 역할을 담당한다. 외부 운용사에서 다양한 금융상품을 공급받아 고객에게 제공할 상품을 선별하고, 판매 채널과 모바일트레이딩시스템(MTS)에 어떤 상품을 배치할지 결정한다. ETF 역시 주요 대상이다.국내 최대 증권사인 미래에셋증권이 고객들에게 선보이는 상품 구성은 최근 많이 달라졌다. 박 대표는 "인공지능(AI)·반도체 등 특정 성장 테마를 중심으로 한 상품 전략 대신 인덱스와 분산투자 중심으로 상품 라인업을 재편하고 있다"고 설명했다. 그는 "예전에는 AI나 반도체 같은 테마를 많이 강조했다면 지금은 안정성에 좀 더 무게를 두고 있다"며 "주식 안에서도 개별 테마보다는 인덱스를 선호한다"고 덧붙였다. ETF 투자 전략과 관련해서도 특정 테마보다 S&P500이나 나스닥 등 주요 지수를 추종하는 상품에 대한 관심이 커지고 있다고 그는 전했다. 국내 주식 비중을 완전히 줄이기보다는 국내 주식 ETF와 펀드 라인업을 유지하면서 해외 상품과 함께 분산하는 방식이다. 고객들의 투자 행태도 달라지고 있다. 펀드보다 ETF에 대한 선호가 높아지고 있으며, 해외 투자 역시 확대되는 추세다. 박 대표는 "해외 주식, 특히 미국 지수 상품에 대한 관심이 높아지고 있다"고 말했다. 미래에셋증권은 고객의 단기적인 매매를 유도하기보다 장기적인 자산 성장을 상품 전략의 중심에 두고 있다. 목표수익률에 도달하면 자산을 청산하고 다시 투자하도록 설계된 일부 타깃전환형 상품에 대해서도 장기 투자 관점에서 신중하게 접근하고 있다. 박 대표는 이 같은 전략을 설정한 이유에 대해 "시장이 빠르게 상승해 목표수익률을 일찍 달성하면 고객이 상품에서 빠져나왔다가 다시 들어가는 과정에서 시장 수익을 놓칠 수 있기 때문"이라고 설명했다.* This article has been translated by AI. 2026-09-09 16:00:00
  • Government Introduces Guidelines to Mitigate Trauma in Disaster Reporting
    Government Introduces Guidelines to Mitigate Trauma in Disaster Reporting Sensational images from disaster scenes and the recurring portrayal of grieving families have raised concerns about the media's role in exacerbating trauma for victims and the public. In response, the government has introduced guidelines aimed at fostering a safer culture of disaster reporting. On September 9, the Ministry of Health and Welfare and the National Mental Health Center announced the results of their research on enhancing disaster reporting monitoring tools and developing a checklist. This initiative aims to implement the 'Disaster Reporting Guidelines for Trauma Prevention,' established in 2022, in real-world reporting scenarios, expanding the focus to include coverage during memorial periods. The research team analyzed coverage of major disasters, including the 2024 12·29 passenger plane crash, the 2025 massive wildfires in Gyeongbuk, Gyeongnam, and Ulsan, and the 2022 Itaewon tragedy. They found that the sensational nature of reporting varies over time but remains a consistent issue. Immediately following disasters, reports often feature 'graphic expressions and shocking scenes' (up to 30.6%) without filters. In contrast, during memorial periods, scenes of grieving families (up to 50%) replace these images, causing additional harm to victims and triggering trauma for the public. Focus group interviews revealed that families directly affected by disasters cited 'unauthorized filming' and 'repeated individual contact' from reporters as more distressing than the sensational content itself. General news consumers also noted that sensational reporting leads them to avoid news altogether, diminishing public interest in accountability and effective measures. To address these issues, the National Mental Health Center plans to distribute a disaster reporting checklist. This checklist is organized into four stages: before the incident (pre-deployment), during the incident (on-site reporting), after the incident (reporting, follow-up, and recovery), with clear responsibilities assigned to on-site 'reporters,' 'desk' editors, and 'news organizations.' For example, desk editors must assess reporters' past trauma experiences and current stress levels before deployment, while reporters are required to confirm the physical and psychological state of sources and obtain prior consent for filming. Importantly, if a source exhibits signs of distress or inconsistent statements, reporters must immediately postpone their coverage. The checklist will be made available in a PDF format that is easy for on-site reporters to access via mobile messaging. Additionally, a mechanism will be established for news consumers to actively address problematic reporting. A 'request for reconsideration form' will be developed, allowing viewers or readers to identify and request corrections for sensational scenes, privacy violations, or trauma-inducing expressions. Nam Yoon-young, head of the National Mental Health Center, stated, 'As the nature of reporting changes over time after a disaster, it is essential to refine the guidelines. We hope that reporters and desk editors will utilize this checklist to prevent re-traumatization of disaster survivors during memorial periods.'* This article has been translated by AI. 2026-09-09 16:00:00
  • South Korea takes state-led route in AI race as latecomer
    South Korea takes state-led route in AI race as latecomer SEOUL, September 09 (AJP) - America's biggest technology companies are preparing to pour roughly $725 billion into artificial intelligence infrastructure this year. South Korea cannot come close to matching that private-sector firepower. So Seoul is reaching for something Silicon Valley does not need nearly as much — the state balance sheet. The government's 2027 budget bill submitted to the National Assembly on Sept. 3 lifts spending on AI and three linked mega-projects by 97.2 percent to 21.3 trillion won ($15.8 billion), equivalent to about 2.6 percent of total government expenditure of 820.9 trillion won. Their share was about 1.5 percent this year. Gartner forecasts worldwide AI spending will reach $2.59 trillion in 2026, up 47 percent from a year earlier. The four biggest U.S. hyperscalers — Amazon, Microsoft, Google and Meta — alone plan around $725 billion in capital expenditure this year, up 77 percent from 2025, according to Value Add VC's tracker. Korea's wager is different. Private AI investment in the country came to a paltry $1.78 billion in 2025, compared with $285.9 billion in the United States, according to Stanford University's 2026 AI Index. Still, Korea ranked first globally in AI patents per 100,000 people, at 14.31, and third in notable AI models released. The mismatch points to the problem Seoul is trying to solve through state-led investment. Korea has technological capability, but the pools of private capital needed to scale it remain far smaller than in the United States. The treasury is moving to fill part of that gap. The 2027 money goes beyond R&D. It includes another 10,000 high-end graphics processing units, 3.1 trillion won for physical AI and roughly 2,000 domestically produced robots to be deployed in defense, policing, firefighting, care services and agriculture. Korea has reason to believe the factory floor could be its strongest AI battlefield. It already has the world's highest industrial robot density, with 1,220 robots for every 10,000 manufacturing workers, according to the International Federation of Robotics. Singapore is second at 818, while Germany and Japan have 449 and 446, respectively. If Korea cannot match the United States in software capital or China in industrial scale, Seoul is betting that it can compete where AI meets manufacturing. China illustrates the size of the challenge. It installed 295,000 industrial robots in 2024, accounting for 54 percent of all installations worldwide, and operates roughly 2 million robots, according to the IFR. South Korea is therefore trying to combine its semiconductor and automation strengths with a government-financed AI layer. AI colleges will expand from KAIST to all four national science and technology institutes, alongside new industry-linked graduate programs. The science ministry's budget rises 24.5 percent to a record 29.6 trillion won next year. Deputy Prime Minister and Science Minister Bae Kyung-hoon, who oversees 9.4 trillion won of the ministry's budget, has framed physical AI as an export strategy. Korea will "export the Republic of Korea's factories to the world" on a homegrown physical AI platform, he told a fiscal strategy meeting at the presidential compound in June. The budget push sits inside a much larger corporate investment drive unveiled by President Lee Jae Myung that month. Samsung Electronics, SK hynix and suppliers plan about 800 trillion won in new semiconductor investment, including fabrication plants in southwestern Korea, while SK Group, GS Group and Naver are backing an initial 550 trillion won buildout of AI data centers. Those sums are corporate investment rather than direct government expenditure. Seoul is seeking to accelerate them through infrastructure, policy support and public investment. "We must secure the core elements of AI faster than any other country," Lee said in announcing the three mega-project strategy. Nvidia is another part of the buildout. Chief Executive Jensen Huang said his company had agreed to supply 260,000 GPUs to the Korean government and four conglomerates, describing Korea as "the only government that has directly purchased AI chips for national R&D." The supply would push Korea's chip stock above 300,000 units from about 65,000 and feed new computing infrastructure, including a 2.41 trillion won national computing center in Haenam that broke ground in August. The model stands in sharp contrast to the United States. Washington's AI leadership has largely been financed by corporations and venture capital, with federal spending concentrated on research, procurement and strategic programs rather than attempting to replicate hyperscaler investment. Japan has taken a more interventionist approach, setting aside about 1.23 trillion yen ($8 billion) for advanced chips and AI this fiscal year, while India's five-year IndiaAI Mission totals 103.72 billion rupees ($1.09 billion). China offers the closer parallel, having long used government guidance funds and industrial policy to direct capital toward semiconductors, AI and other strategic technologies. Seoul is also extending its strategy beyond chips and robots. The Ministry of Land, Infrastructure and Transport on Wednesday presented a "K-AI City" strategy in Busan that would apply AI to building permits, municipal control rooms and other urban functions. Wonju, Cheonan-Asan, Saemangeum and Gwangju have been selected as pilot areas. Land Minister Kim Yun-duk said the program would be judged by whether it made everyday life safer rather than by the sophistication of the technology itself, promising "a people-centered AI city, where technology is not the goal itself." Money, however, may not remain Korea's biggest constraint. Electricity is emerging as another. The semiconductor factories and AI data centers planned across the country could require an additional 25 to 30 gigawatts of power, roughly equivalent to the output of 20 nuclear reactors, Reuters reported Tuesday, citing government estimates. Nuclear power currently supplies nearly a third of Korea's electricity. The initial AI data-center plan alone calls for about 8.4 GW of capacity, backed by SK, GS and Naver, with another 10 GW envisaged by 2035. Korea may therefore find that financing GPUs and factories is easier than supplying them with enough electricity. There is also a fiscal vulnerability built into Seoul's strategy. National tax revenue is forecast to jump 49.8 percent next year, with the semiconductor upcycle creating much of the fiscal room for the government's spending expansion. The global AI boom is generating extraordinary profits and tax receipts from Korea's memory-chip industry. Seoul is recycling part of that windfall into an attempt to build a broader domestic AI industry. A reversal in the memory cycle would weaken both sides of the equation at once. For now, the government is treating the race as one Korea cannot afford to sit out. Ha Jung-woo, standing vice chair of the Presidential Council on National AI Strategy since Aug. 31, described it Tuesday as "an all-out national contest that decides industry, security and growth." Unlike the United States, where companies are financing most of that contest, Korea is making the government one of its biggest early investors. AJP Takeaways - Korea nearly doubles 2027 spending on AI and three linked mega-projects to 21.3 trillion won. - Private AI investment remains a fraction of U.S. levels despite Korea's strength in patents and notable AI models. - Seoul is betting heavily on physical AI, building on the world's highest industrial robot density. - Electricity demand and reliance on the semiconductor upcycle pose longer-term risks to the state-led strategy. 2026-09-09 15:59:35