AGP Executive Report

AI Infrastructure Deals: Nvidia CEO Jensen Huang’s Seoul visit is turning into a major AI supply-and-build push, with SK Group, SK hynix, Naver, Doosan and others lining up cooperation on gigawatt-scale AI cloud and memory for data centers, while Korea’s tech ministry moves to secure thousands of Nvidia GPUs for a state AI project. Semiconductor & Exports: Korea’s chip exports surged in early June, helping lift the market after a tech sell-off, even as investors stayed jittery over Middle East uncertainty. Smart Logistics: LG CNS and LX Pantos signed an MoU to deploy humanoid-driven automation in logistics, aiming to automate warehouse flows from inbound to outbound. Automotive Hygiene Tech: Hyundai and Kia unveiled Plasma Care UVC, a passenger-safe UV sanitization system designed to disinfect car interiors while people are onboard. Privacy & E-commerce: Coupang faces Korea’s record privacy penalty—624.7 billion won—after regulators found a massive data breach affecting tens of millions of users. Energy Cooperation: Korea and the US hosted an energy business forum in Washington to expand bilateral cooperation across power, nuclear and heavy industry projects. Shipping Resilience: Another South Korean LNG carrier successfully exited the Strait of Hormuz as firms manage routes amid escalating tensions. Workforce Signals: Korea’s employment fell for the first time in 17 months, with manufacturing and construction job losses linked to the prolonged Middle East fallout.

AI & Semiconductors: Nvidia CEO Jensen Huang’s Seoul visit turned into a major South Korea AI infrastructure push, with the tech ministry securing thousands of GPUs for a state AI project, SK hynix signing a multi-year memory partnership, and SK Telecom/Naver/Doosan teaming up on gigawatt-scale AI cloud and data centers—while questions linger about the real cost of the AI boom. EU–Korea Trade: The EU and South Korea signed a digital trade agreement in Brussels, aiming to make e-contracts and e-signatures legally enforceable, boost cross-border data flows, and protect consumers—an upgrade to the existing free trade framework. Markets & Supply Chains: South Korea’s KOSPI slid sharply as margin calls forced selling and circuit breakers halted trading twice, with heavy weighting in Samsung and SK hynix amplifying stress; globally, AI-stock selloffs and Iran-linked oil volatility kept investors jumpy. Energy & Geopolitics: Renewed US-Iran strikes lifted oil prices and added uncertainty for Asia markets, while Seoul’s economy officials said recovery is holding and summit diplomacy will be used to create new growth engines. Industry Deals Abroad: Cambodia’s envoy invited a top South Korean jewelry designer to Phnom Penh to explore partnerships and manufacturing, including gemstone processing and export training. Healthcare Policy: South Korea’s hypertension control success drew global attention as a potential playbook for other countries tackling non-communicable disease burdens.

AI Deal Surge in Seoul: Nvidia CEO Jensen Huang met South Korea’s tech heavyweights to deepen AI infrastructure ties, including a state AI GPU plan (9,704 GPUs, 2,016 Vera Rubin units), SK Hynix memory partnerships, and SK Telecom–Naver–Doosan plans for gigawatt-scale AI cloud buildout—while Samsung also announced a groupwide AI transformation using external gen-AI tools. Semiconductor Investment Watch: Samsung said it spent 89.9 trillion won on capex and R&D in 2025, underscoring how chip upcycles are powered by sustained spending. Market Mood: South Korea’s Kospi slid about 6% amid renewed AI-stock jitters and Middle East risk, as investors weighed whether the tech selloff is a shakeout or a longer downturn. Labor Tension: Kakao’s union staged the company’s first-ever strike over bonus and profit-sharing demands. Hydrogen Project Milestone: Utility Global signed its first South Korea commercial H2Gen engineering agreement in Daejeon, targeting fuel-cell-grade hydrogen for hydrogen trams. Energy Geopolitics: Oil prices and global markets reacted to fresh US-Iran strikes near the Strait of Hormuz, keeping supply-disruption fears alive.

AI Infrastructure Deals: Nvidia CEO Jensen Huang used a Seoul stop to lock in new AI partnerships with SK Hynix, SK Telecom, Naver and Doosan, while the South Korean tech ministry plans a state AI project using thousands of Nvidia GPUs—pushing Korea deeper into “AI factory” build-outs. Semiconductor Supply Chain: The memory race stays front and center as SK hynix signs multi-year work on advanced memory for AI data centers, and Samsung weighs further packaging moves. Clean Energy Manufacturing: Hanwha Qcells began producing solar cells in the U.S., unveiling a fully onshore, integrated supply chain plant in Georgia. Shipping & Energy Logistics: BGN ordered two more dual-fuel LPG carriers from HD Hyundai Heavy Industries, and Kuwait offered crude oil to Asian refiners for the first time since the Iran war began. Healthcare Research: KRIBB researchers identified a key protein mechanism behind colorectal cancer drug resistance to 5-FU, pointing to a strategy to restore sensitivity. Markets & Risk Mood: Global stocks bounced as oil eased on a temporary Iran-Israel halt, but AI-led sell-offs still rattled tech-heavy trading.

AI & Semiconductors Rally: South Korea’s KOSPI snapped back more than 8% to reclaim the 8,000 mark as chip stocks rebounded on AI optimism and a temporary Israel-Iran ceasefire, with exchange volatility controls triggered during the surge. FX Watch: The Financial Supervisory Service is stepping up talks with banks, brokerages and insurers to curb won volatility as foreign outflows and higher US-rate expectations keep pressure on the currency. Policy Push for Growth: President Lee Jae-myung laid out “irreplaceable Korea” goals for his second year, with major emphasis on AI competitiveness alongside semiconductors and faster delivery of large investment projects. AI Infrastructure Deals: Nvidia’s Seoul push is deepening partnerships with Korean giants, including multi-year memory and joint R&D plans with SK hynix and a gigawatt-scale AI cloud direction with SK Telecom. Construction Automation: GS E&C and Daedong Robotics signed an MoU to pilot AI field robots at construction sites, targeting material transport and repetitive labor tasks. Retail Compliance: South Korea’s fair trade watchdog fined Coupang 500 million won over misleading discount ads for paid membership subscribers. Energy & Industry Projects: Technip Energies won a €1bn+ EPCIC role for Mozambique’s Coral Norte FLNG project in partnership with JGC and Samsung Heavy Industries. Trade Agreement: South Korea’s economic and trade cooperation pact with Jordan took effect, setting a framework for investment, tourism, agriculture and environment cooperation.

AI Infrastructure Push: Nvidia’s Jensen Huang rolled out a new wave of AI deals in South Korea, including a “gigawatt-scale” AI data center build with SK Telecom (first facility targeted for 2027) and broader partnerships with Naver, LG Group, Hyundai and Doosan, while also teaming with SK hynix to co-develop next-gen memory for “AI factories.” Semiconductor Supply Pressure: SK hynix and Nvidia confirmed a multiyear technology partnership aimed at keeping advanced memory supply in step with AI buildouts, as the memory shortage is expected to last “for quite a few years.” Market Mood: After a tech-led sell-off that hit Korea’s KOSPI hard, Wall Street rebounded on Monday as AI stocks recovered and oil eased from overnight peaks, underscoring how sensitive South Korea’s chip-heavy market remains to global rates and energy shocks. Crypto Crackdown: South Korean police raided Bithumb over alleged influence peddling tied to lawmaker Kim Byung-gi’s son’s hiring, adding pressure to the country’s fast-moving crypto oversight. Defense & Industry: Seoul’s nuclear-powered submarine plan drew fresh attention as the IAEA chief said safeguards discussions are underway and should address proliferation concerns, while the U.S. approved JDAM kit sales to expand South Korea’s precision-strike options.

AI Infrastructure Push: Nvidia and SK Group are expanding their chip alliance into “AI factories,” with SK Telecom set to run a large-scale AI infrastructure platform in South Korea, while Nvidia also struck multi-year deals with SK Hynix and other Korean partners to secure memory supply for AI data centers. Physical AI & Robotics: Nvidia and LG Group agreed to build an AI factory ecosystem spanning robotics, autonomous driving, AI data centers and mobility, and Hyundai also met Nvidia to discuss physical AI use in real-world robotics. Cloud Rollout: SK Telecom and Nvidia plan a large AI cloud platform, targeting the first facility to go live in 2027. Policy & Economy: President Lee Jae Myung nominated Han Seong-sook as South Korea’s next prime minister, and said the government will launch a major AI-driven investment initiative funded by chip tax windfalls. Local Friction: Data centers are becoming a political flashpoint as residents push back against projects near apartments, with disputes and complaints surfacing in Seoul’s Geumcheon-gu. Markets & Energy: Global risk-off hit tech-heavy Korea’s Kospi hard amid Iran-Israel tensions that sent Brent above $97 and raised rate-hike fears.

AI Chip Race: Nvidia CEO Jensen Huang is set to unveil a deeper cooperation plan with SK Group and SK hynix, with SK hynix DRAM expected to power Nvidia’s Vera data-center CPU, while Huang warns the memory shortage could last “for several years,” keeping Korea’s AI hardware momentum in focus. Semiconductor Supply Chain: The SK–Nvidia talks come as Korea’s chip makers face tight upstream capacity from wafers to packaging, turning partnerships into a survival strategy for data-center demand. Energy Transition for Rural Korea: South Korea is expanding community-owned “solar income villages,” letting residents run solar sites on underused land to fund local life and support carbon neutrality. Tax & Digital Government: South Korea’s National Tax Service signed three agreements with Liberia’s revenue authority to boost tax information exchange, offshore evasion recovery, and digital transformation. Trade & Industry Links: Serbia and South Korea have completed negotiations toward a free trade agreement, while an Uzbekistan–Korea investment forum in Tashkent will spotlight cooperation in industry, infrastructure, construction, transport, digital tech, and finance. Geopolitics With Industrial Impact: North Korea reiterates its nuclear “line of no retreat” ahead of Xi Jinping’s Pyongyang visit, underscoring ongoing sanctions-busting risks that can ripple into regional trade and energy flows.

Energy Markets: Oil prices eased as traders saw US-Iran tensions as less likely to flare, while LNG prices in northeast Asia rose on stronger China/India demand and supply risks; Inflation Watch: South Korea’s inflation jumped to 3.1% in May, driven by fuel costs (petrol +23.1%, diesel +33.3%); FX & Flows: The won briefly broke 1,560 per dollar, hitting the weakest since 2009 as foreign selling and a stronger dollar overwhelmed export strength; Markets: Foreign investors extended KOSPI selling, while retail investors sold over 1 trillion won of overseas stocks in early June; Semiconductor Growth: OECD data put South Korea at 1.7% real GDP growth in Q1, led by semiconductor exports; AI & Data Centers: LG Uplus unveiled an AI data center strategy for KRW 5 trillion in orders by 2030, and Nvidia CEO Jensen Huang pushed robotics and AI partnerships during his Seoul trip; Trade/Industry Diplomacy: South Korea’s industry minister plans energy and industrial cooperation talks across Kazakhstan and the Middle East, plus nuclear project progress in the Czech Republic; K-Culture & Tourism: Korea’s embassy-led K-Vibe Festival in Nepal highlighted K-beauty and cuisine, while a Seoul BJJ event drew record participation.

AI Chip & Memory Supply Chain: Nvidia CEO Jensen Huang returned to Seoul and signaled “surprises” while meeting Samsung, SK Hynix and Hyundai, as the market digested Broadcom’s weaker AI outlook that dragged KOSPI more than 5% and sent the won to a crisis low. Data Center Power Infrastructure: Gaon Cable’s U.S. unit completed a full-stack power deal, winning grid cables and bus duct work for AI data centers, adding to a Meta-linked bus duct contract worth about 4 trillion won. Semiconductor Market Mood: LG Display pushed gaming OLED targets to ~20% of large-OLED shipments, while Micron shares slid on AI-chip selloff fears despite long-term memory demand optimism. Energy & LNG Tightness: Fitch cut the global growth forecast to 2.4%, blaming the oil shock from US-Iran tensions; LNG markets also face tighter supply balances as summer demand and storage competition loom. Crypto Regulation Shift: South Korea’s regulator moved to ease proposed crypto transfer reporting rules for large transfers, even as local bitcoin pricing hit its deepest discount since 2021. Defense/Shipbuilding Watch: North Korea showcased a nuclear-capable 5,000-ton destroyer after a botched launch, underscoring naval modernization.

Semiconductors & AI Markets: US chip sell-off deepened as investors cooled AI-fueled valuations after stronger jobs data, with Nvidia and other major chipmakers taking sharp hits—an external reminder that Korea’s chip rally can swing fast. Nvidia in Korea: Nvidia CEO Jensen Huang kicked off a high-profile Seoul visit with Korean business leaders and esports star Faker, even gifting a signed RTX 5090, underscoring Nvidia’s push into Korea’s gaming and robotics growth themes. Memory Chips: China’s CXMT and YMTC moved closer to listings, signaling longer-term competitive pressure on Samsung and SK hynix as AI demand lifts the whole memory cycle. Defense & Shipbuilding: North Korea ordered a 10,000-ton destroyer and “underwater secret weapons” ahead of Xi Jinping’s visit, while also conducting navigation tests and calling for faster fleet modernization. Industrial Safety: Hanwha Aerospace held the first funeral for a worker killed in a deadly factory blast, as the company faces renewed scrutiny after prior incidents. Trade Policy: South Korea’s government is pressing ahead with efforts to join RCEP, aiming to plug into the world’s largest trade bloc. Crypto Regulation: South Korea launched criminal investigation into Polymarket bettors, adding to the country’s tightening stance on digital-asset-related activity. Consumer/Brand Risk: A Starbucks Korea “Tank Day” backlash shows how fast retail marketing missteps can trigger public backlash and government-level fallout.

Nvidia’s Seoul Push for Robotics: Jensen Huang arrived in South Korea promising “some surprises” and betting robotics will be the next major growth sector, while meeting esports star Faker at T1’s gaming cafe—an effort to deepen Nvidia’s AI-to-robotics partnerships with local tech heavyweights. Semiconductor Pay & Labor Tension: Samsung Electronics’ AI-driven profit surge is colliding with worker demands, as the company agreed to expand chipmaking bonuses to avert a potential strike, highlighting how AI windfalls are being negotiated on the factory floor. Samsung Vietnam Expansion: Samsung plans to invest up to $4 billion in a Vietnam chip-testing plant near Hanoi, targeting legacy DRAM and NAND demand from AI data centers and creating thousands of jobs. Crypto Compliance Softened: South Korea’s financial authorities scrapped a plan for automatic suspicious-transaction reporting on cross-border crypto transfers above 10 million won, easing compliance pressure on exchanges and small firms. Markets Jolt on AI/Geopolitics: Global tech weakness hit semiconductors hard and dragged South Korea’s Kospi, as investors weighed AI sentiment fatigue and Middle East uncertainty alongside shifting oil prices. Energy Security & Shipping Risk: Reports say the US is quietly guiding some commercial vessels through the Strait of Hormuz to reduce disruption, underscoring how logistics and energy flows remain tightly linked to regional conflict.

AI & Semiconductors: Nvidia CEO Jensen Huang landed in Seoul and signaled “surprises,” pitching Korea as the next R&D and robotics testbed while meeting Samsung, SK, Hyundai, LG and Naver; the visit also underscores how the AI memory boom is reshaping Korea’s industrial stack. Chip Supply Chain: Air Liquide won a nearly €200m long-term deal to build and run a nitrogen unit for SK hynix’s new HBM packaging/testing fab in Cheongju, aiming for late-2027 output. Display Manufacturing: Samsung Display is building a pilot Micro LED smartwatch display line at its Asan campus, with mass-production investment under consideration for next year. Markets & FX: KOSPI slid nearly 4% as AI-linked profit-taking hit tech shares, while the government said it’s taking “extra vigilance” over won-dollar volatility. Energy Security: KOGAS said LNG import diversification is cutting Middle East dependence, with Canada-linked supply helping push the share below 18% this year. Trade & Diplomacy: South Korea and Canada expanded cooperation on energy, critical minerals and strategic industries, targeting major economic impact. Industrial Finance: Banks and fintech firms discussed partnerships for potential won-backed stablecoins, including KB-Kookmin and Toss. Regional Geopolitics: China announced Xi Jinping will visit North Korea June 8-9, the first trip in seven years, as Beijing seeks to reassert influence.

North Korea Nuclear Expansion: Kim Jong Un visited a newly operational nuclear material production factory and ordered an “exponential” ramp-up, saying weapons-grade output has more than doubled in five years, with plans to accelerate both the scale and technology of its arsenal. Aviation Connectivity: South Korea and China agreed to expand flight rights for the first time in seven years, adding weekly passenger and cargo frequencies to boost tourism and business links. Semiconductor Supply Chain & Energy: Samsung’s Vietnam unit signed its first direct Power Purchase Agreement, taking 70GWh of solar power, while Soulbrain RASA secured a Texas Semiconductor Innovation Fund grant to build a U.S. phosphoric acid facility for chip manufacturing. AI & Markets Mood: Fitch warned global growth will slow further in 2026 as the oil shock from the U.S.-Iran conflict keeps inflation pressure elevated, though tech and semiconductor demand offers some support for South Korea. Talent & Research: South Korea expanded its Top-Tier Visa to include professors and science/technology researchers, aiming to pull in high-end expertise for labs and universities. Webtoon Crackdown: The culture ministry vowed to pursue webtoon piracy offenders “to the very end,” targeting illegal platform operators even as enforcement faces domain and server shifting. Crypto Infrastructure Move: Cosmos Labs bought Mintscan and launched a Seoul subsidiary to consolidate key parts of its network under one operator.

AI & Chips: Nvidia CEO Jensen Huang is set to arrive in Seoul and meet Korea’s top business leaders, with talks expected to cover AI data centers, robotics, physical AI, and HBM memory. Semiconductor Supply Chain: SK Group Chairman Chey Tae-won expands ties with TSMC and Nvidia-linked partners, aiming to broaden next-gen HBM and advanced packaging cooperation as AI demand strains global supply. Manufacturing & Defense Safety: Hanwha Aerospace halts production across major sites and faces police/labor raids after a deadly Daejeon explosion that killed five workers, spotlighting industrial safety and defense production continuity. Trade Policy Shock: The US proposes 12.5% forced-labor tariffs on 54 economies including South Korea, while Seoul’s industry minister says the Korea-US tariff cap won’t exceed 15%. Energy & Industry: Hyundai Motor Group, Nvidia, and South Korea’s science ministry discuss an AI technology center candidate in North Jeolla’s Saemangeum, tying AI compute to renewable power. Finance & Digital Assets: Korea Investment & Securities takes a strategic stake in Coinone as tokenization of stocks and bonds moves closer to mainstream finance. Cybersecurity: Anthropic expands Project Glasswing to more organizations, including South Korea, to scan for software vulnerabilities using Claude Mythos Preview. North Korea: Kim Jong-un unveils a new nuclear material production facility and vows “exponential” expansion, raising regional security stakes. Consumer Tech: LG Electronics launches an ultra-low-power “LG E-Paper Display” for commercial spaces, starting in South Korea before wider rollout. SME Survival: Woori Bank warns Korea’s founder-led SMEs face a succession crisis, with many aging owners lacking heirs—especially in manufacturing outside Seoul.

Trade Shock: The Trump administration proposed new Section 301 tariffs tied to “forced labor” findings, with an extra 10% on imports from 60 economies’ first group (including Canada, EU, Mexico, and others) and up to 12.5% on the rest, including South Korea—sparking pushback from trading partners and raising compliance risk for exporters. Energy Security: With Middle East shipping uncertainty lingering, South Korea is diversifying—tripling Canadian crude imports and boosting LNG purchases—while global oil prices swing on Hormuz-related fears. Nuclear Cooperation: Seoul and Washington held inaugural talks on expanding uranium enrichment and reprocessing rights for civilian purposes, alongside a separate track for nuclear-powered submarines. Industrial Safety: A deadly explosion at Hanwha Aerospace’s Daejeon plant killed five and injured two, prompting production halts and an investigation. Semiconductor Momentum: AI-driven demand continues to lift Korea’s chip complex and market sentiment, while election-linked stocks show weaker trading as investors chase tech leaders. Power Projects: Kepco secured a $1.4bn Saudi cogeneration contract with Aramco, supporting further export opportunities for Korean firms.