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South Korea's semiconductor industry, led by Samsung Electronics and SK Hynix, is experiencing a significant boom driven by surging global demand for high-performance AI memory chips, resulting in record quarterly profits. This focus, however, is straining supplies for more common memory chips used in consumer electronics, with companies warning of potential shortages and Apple noting rising costs. Concurrently, Hyundai Motor is aggressively expanding into robotics and autonomous vehicles, including deploying humanoid robots and launching a robotaxi service, even as its core automotive business faces challenges with declining operating profit and missed sales targets.
The most significant development was the announcement of a 25% tariff increase on imports from South Korea, framed as a response to delays in a trade deal and insufficient Korean investment in the United States. South Korean officials are downplaying the immediate impact, particularly on semiconductors, and intend to negotiate. Separately, major investors in the e-commerce firm Coupang have notified the South Korean government of their intent to file an international arbitration claim, alleging unfair regulatory treatment, and have sought a U.S. investigation. The U.S. continues to pressure South Korea to formally ratify an existing trade agreement, threatening further tariffs. In economic assessments, the IMF revised its growth forecast for South Korea upward but warned of financial system vulnerability due to its large holdings of dollar-denominated assets.
4 topics | 73 sources
Samsung Electronics announced record quarterly operating profits, which more than tripled, driven by soaring demand for memory chips used in artificial intelligence systems. The company and its rival SK hynix are now preparing to compete in the next generation of these high-performance chips, called HBM4. This intense focus on producing chips for AI is creating a shortage for other devices. Both Samsung and SK hynix have warned that supplies for memory chips used in personal computers and smartphones are being squeezed as manufacturers prioritize AI products. Apple has also noted that rising memory costs are starting to affect its business.
Hyundai Motor reported a 19.5% drop in operating profit for 2025, even though it sold a record number of vehicles. The company also missed its sales targets for the year. At the same time, Hyundai is making a major push into robotics. It hired a former Tesla executive who worked on the Optimus humanoid robot as an adviser for Boston Dynamics, a robotics company it owns. Hyundai also showed off its Atlas humanoid robot at the CES tech show and is preparing to launch its Ioniq 5 robotaxi. The company's union in South Korea has warned that these robot plans could threaten human jobs.
South Korean semiconductor company SK hynix has become the country's most profitable company, driven by strong demand for its AI chips. The company also announced plans to invest nearly $13 billion to build a new chip packaging plant in South Korea. Separately, South Korea's government reported that strong chip exports boosted the country's overall export figures in January. The government also stated it is working to minimize the impact of a new 25% U.S. tariff on advanced computing chips and has agreed with Italy to increase cooperation in the fields of artificial intelligence and semiconductors.
Scott Bessent, a prominent investor, has commented on the value of the South Korean currency, the won. He stated that the recent depreciation of the won is not consistent with South Korea's strong underlying economic fundamentals, suggesting the currency is undervalued.
3 topics | 79 sources
Jan 28
US pressures South Korea to ratify trade deal, threatens tariff hikesThe United States is pressuring South Korea to ratify a trade agreement, with US officials expressing disappointment and stating there will be no deal until it is ratified. President Donald Trump has specifically threatened to raise US tariffs on imports from South Korea to 25 percent, citing delays in South Korean investment in the United States as justification for the move.
Jan 23
US investors in Coupang threaten legal action against South KoreaAmerican investors in the South Korean e-commerce giant Coupang have formally notified the South Korean government that they intend to file an international arbitration claim. They argue that South Korea's regulatory actions against Coupang are unfair and have also requested that the US government investigate the matter. This move has drawn a strong protest from South Korean civic groups, who object to the US investors' request for a US government probe. A US politician has also warned South Korea against what they call unfair treatment of Coupang and other American tech companies operating there.