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South Korea

South Korea records strong growth on AI boom; Global interest in bilateral ties surges

South Korea's economy posts record growth driven by AI chip demand, while NVIDIA CEO Jensen Huang's visit sparks major investor interest and strengthens regional relations. Separately, a Philippine police arrest resolves a long-standing case involving a South Korean businessman's 2016 killing.

Why it matters

Nvidia's deepening commitment underscores South Korea's pivotal role in the global AI supply chain through its memory-chip giants Samsung and SK hynix, reinforcing the HBM boom that has driven Korean equity markets and exports. Huang's charm offensive—and his push into robotics R&D—signals where the next phase of AI hardware competition is headed, with Korea positioned as a manufacturing and engineering hub. A potential Xi visit to Pyongyang, if confirmed, would mark a significant recalibration of China-North Korea ties amid broader Northeast Asian tensions.

Sources

Country basics

Population
51.2M
Capital
Seoul
Currency
KRW
Head of state
Lee Jae Myung
Government
republic

South Korea occupies the southern Korean Peninsula and remains technically at war with North Korea, separated by the heavily fortified Demilitarized Zone — the central security fault line of its foreign policy. It is a consolidated presidential democracy, currently led by President Lee Jae Myung of the Democratic Party, and anchors its strategy on a longstanding alliance with the United States while navigating a complex relationship with China (its largest trading partner) and a historically fraught but strategically important partnership with Japan. As a major middle power and member of the G20 and OECD, Seoul balances economic integration with regional powers against deterrence of Pyongyang, with domestic politics often polarized between progressive engagement-leaning and conservative hardline approaches to the North.

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