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Korean Industrial Insight No. 11 of AI, Semiconductors, Batteries and Electric vehicles |
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2025-04-02 |
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Ⅰ. AI INDUSTRY TRENDS
1. Korean Government Invests KRW 3.4 Trillion in AI, Semiconductors, Advanced Bio, and Quantum Technology to Boost Economic Dynamism
- Focuses on three game-changer sectors and key industries
- 75 trillion won in policy finance for new industries
- Increasing skilled workforce in AI, semiconductors, and shipbuilding through core manpower training
The South Korean government will invest 3.4 trillion won in the so-called three game-changer sectors: artificial intelligence (AI) and semiconductors, advanced bio, and quantum technology development. In addition to these areas, the government will also allocate policy finance amounting to 75.4 trillion won to support new industries, including aerospace and the cultivation of unicorn ventures.
The Korean government has discussed the implementation plan for New Growth 4.0 this year and reviewed the current state of infrastructure development for this initiative. Launched in December 2022, the New Growth 4.0 project aims to enhance economic dynamism in response to challenges such as slowing economic growth, intensifying technological competition, and the pursuit of latecomers.
The government has decided to accelerate the implementation of existing projects this year, considering changes in the global industrial and trade environment. Focus will be placed on three key game-changer sectors, along with strategic industries such as semiconductors, secondary batteries, displays, and shipbuilding and shipping. Additionally, the government plans to expedite the drafting and revision of laws through inter-agency collaboration and strengthen the management of collaborative projects.
The government will primarily focus on several initiatives within the three key game-changer sectors, including: ▲establishing a national AI computing center, ▲developing subordinate regulations for the Basic AI Act, ▲creating a medical technology system that can immediately enter the market, ▲formulating an innovation strategy for a Korean-style biohealth cluster, ▲enacting the Digital Healthcare Act, ▲launching the Quantum Strategy Committee, and ▲preparing a comprehensive five-year plan related to quantum technologies.
In examining the strategic industry projects, the government plans to implement several initiatives in the semiconductor sector, including the refinement of follow-up regulations for the Special Semiconductor Act and the development of infrastructure for semiconductor clusters, such as power supply, water resources, and transportation. In the secondary battery sector, support will be provided for next-generation battery technology development, while expanding policy financing to promote private investment and pursuing the drafting and revision of laws to establish a circular economy ecosystem. In the display sector, efforts will focus on supporting the development of organic light-emitting diode (OLED) technology, securing key technologies for inorganic light-emitting diodes (iLED), and achieving self-sufficiency in essential materials, components, and equipment.
The Korean government is also actively supporting future promising industries. In the field of Urban Air Mobility (UAM), it will identify specialized urban aviation models and initiate urban demonstration projects. In the aerospace sector, the fourth launch of the Nuri rocket is scheduled for November, and the government will begin phase two of the lunar exploration project. The development of the Korean Positioning System (KPS) will continue as well. This year, the government will also confirm six additional carbon-neutral cities and work on refining regulations for unmanned delivery using robotic drones. Additionally, it will enhance efforts to promote Korean culture by establishing three new gourmet belts, expanding financial support of 520 billion won across five content sectors, and strengthening support for securing large overseas construction projects.
To facilitate these efforts, the government will provide infrastructure support. Firstly, it will increase the technology investment fund for the three key game-changer sectors from 2.7 trillion won to 3.4 trillion won, representing a 27.1% increase. In the AI sector, the focus will be on developing core technologies at each stage of the value chain, with significant investment directed towards innovative technologies such as digital bio and synthetic biology. In the quantum sector, the government will initiate large flagship projects and establish collaborative quantum research hubs involving industry, academia, and research institutes. Additionally, the Quantum Strategy Committee will be launched, and a comprehensive five-year plan will be developed.
The government will also expand innovative challenge-based research and development (R&D). This includes granting full authority to project managers, abolishing evaluation grades, facilitating the rapid acquisition of equipment, and exempting preliminary feasibility studies, thereby implementing a differentiated system and increasing investment to fully launch R&D efforts. In April of this year, the manual for the National R&D Innovation Act will be revised, and in the second half of the year, the government will begin the process of amending the innovation law.
The government will also increase global R&D funding from 1.8 trillion won to 2.2 trillion won and select two additional Global Industrial Technology Cooperation Centers. In addition to Global AI Frontier Lab, the Boston-Korea Project, and the Quantum Alliance (QUA), support will be provided for initiatives such as the joint development of seaweed biomass technology proposed by U.S. energy agencies in collaboration with South Korea.
The government will also provide focused policy financing to new industries that lack private financing. A total of 75.4 trillion won in policy financing will be supplied through institutions such as the Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Technology Finance Corporation. This includes ▲37.2 trillion won for nurturing advanced strategic industries like semiconductors and AI, ▲21.5 trillion won for supporting promising future industries such as aerospace and quantum technology, and ▲16.7 trillion won for fostering unicorn ventures.
The Korean government will also implement tailored financial support based on corporate growth. A total of 197 startups will be selected to receive 600 million won in commercialization funds over three years. The top 10% of companies will be selected to receive up to 1 billion won in commercialization funding over two years, along with support for participation in global investor relations (IR) events. Furthermore, the government plans to increase global fund resources by 1 trillion won to introduce outstanding startups to leading global investors.
The government also aims to cultivate key talent in new and strategic industries. In the AI sector, 550 young professionals in AI and software will be trained through non-regular innovation education tailored to industry demands. In the quantum field, the goal is to train 540 doctoral candidates by 2032. In the semiconductor sector, practical manpower will be nurtured through semiconductor academies (800 participants), training programs for employees of small and medium-sized enterprises and job seekers (2,675 participants), and system semiconductor design training centers (1,280 participants). The shipping sector similarly aims to train 1,000 personnel for production processes and another 1,000 for technical roles.
The Korean government will also establish a new information portal for the three key game-changer sectors to enhance awareness and provide knowledge about new technologies and businesses. This portal will provide integrated access to specialized policy information, the latest trends, and research reports related to the three game-changer sectors from relevant ministries, public institutions, and government-funded research organizations. Additionally, an international forum focused on the three game-changer initiatives is planned to be held for the first time at the end of this year to share current issues.
2. Korean Government to Help AI Startups' Entry into U.S. East Coast… Application Open Until 11th Next Month
- Government announces AI & digital business partnership program
- Applications start on the 21st… 10 companies to be selected for participation in the first half of the year
On the 20th, the Ministry of Science and ICT (MSIT) has announced a call for applications for its "AI and Digital Business Partnership" program, designed to support the expansion of Korean AI and digital startups into the US East Coast market. The application period for the first half of the year is now open.
The AI and Digital Business Partnership program is designed to empower Korean AI and digital startups to establish infrastructure and networking opportunities in New York, which accounts for 62% of global AI investment. The application period is open from March 21st to April 11th.
In September of last year, MSIT established the Global AI Frontier Lab at New York University (NYU) to facilitate collaborative AI research. This lab will now serve as a key support base for domestic startups.
Furthermore, on February 24th, NIPA (National IT Industry Promotion Agency), IITP (Institute of Information & communications Technology Planning & Evaluation), and NYU signed a Memorandum of Understanding (MOU). This agreement enables Korean AI and digital startups to utilize the facilities and equipment within the Frontier Lab and participate in accelerator programs.
Selected companies will have the opportunity to participate in customized training programs at NYU Stern School of Business, specifically designed for U.S. East Coast market entry. The program also offers access to a range of NYU's resources, including webinars with industry experts, partner identification and matching services, and one-on-one mentorship from NYU faculty and industry professionals.
The program also includes support for office space within the Frontier Lab and partial funding for overseas expansion-related expenses. Furthermore, technical seminars featuring both Korean and U.S. digital companies will be organized to facilitate knowledge sharing on AI and digital technology trends and foster robust collaboration.
The program aims to select 10 companies for the first half of the year. AI and AI Transformation (AX) digital innovation companies must meet specific criteria for U.S. market entry, including having at least one dedicated staff member with fluent English communication skills.
3. AI Textbook Adoption Rates: Elementary Schools Lead, Followed by Middle and High Schools… Grade 4 English Tops
- AI Textbook Adoption Nears 30% in Elementary Schools, 23-24% in High Schools (Grade 1)
- National AI Textbook Adoption at 32.4%... Wide Regional Gaps: Daegu 98.1% vs. Sejong 9.5%
AI digital textbooks are being adopted at a relatively higher rate in elementary schools compared to middle and high schools.
To encourage greater utilization of AI textbooks in schools, the educational authorities plan to provide guidance this week to metropolitan and provincial offices of education, as well as individual schools, regarding the procedures for additional applications for the second semester.
As of the first semester of 2025, 1,813 elementary schools have adopted AI textbooks for mathematics, and 1,843 schools for English in the 3rd grade. This represents 28.6% and 29.1% respectively of the total 6,339 schools.
For elementary 4th graders, 1,854 schools (29.2% adoption rate) have adopted AI textbooks for mathematics, and 1,879 schools (29.6%) for English.
In the first grade of middle school, out of a total of 3,285 schools, 857 have adopted AI textbooks for mathematics and 885 for English, resulting in adoption rates of 26.1% and 26.9%, respectively.
Among the 2,380 high schools, 567 (23.8%) have chosen to use AI textbooks for mathematics and 581 (24.4%) for English in the first grade.
The adoption rates for mathematics were in the order of 4th grade elementary (29.2%), 3rd grade elementary (28.6%), 1st grade middle school (26.1%), and 1st grade high school (23.8%). Similarly, for English, the highest adoption rate was observed in 4th grade elementary (29.6%), followed by 3rd grade elementary (29.1%), 1st grade middle school (26.9%), and 1st grade high school (24.4%).
The relatively higher adoption rates in elementary schools are interpreted as being due to the comparatively lower pressure of internal assessments and college entrance exams compared to middle and high schools.
However, an official from the Ministry of Education stated, "Considering the changes in the timing and scope of AI textbook implementation and the relatively small differences in adoption rates across school levels, we do not view these discrepancies as significant."
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. Korea to Inject Additional KRW 120 Billion into Semiconductor Ecosystem Fund, Aiming to Strengthen Competitiveness
- Policy Finance Support Council chaired by the Deputy Commissioner of the FSC
- Korea Establishes KRW 100 Billion Fund to Foster SMR Development
The Korean government is injecting 120 billion won in new funding into the 'Semiconductor Ecosystem Fund' this year, previously a primarily private sector initiative, bringing the total managed assets to 320 billion won.
On the 26th, the government, led by Financial Services Commission Deputy Commissioner Kim So-young, convened the 10th Policy Finance Support Council meeting at the Front1 Conference Room in Mapo, Seoul. The meeting focused on reviewing the status of early execution of policy financing and announcing operational strategies for government-funded investment funds targeting specific industries, including semiconductor materials, parts, and equipment, and nuclear power.
The Policy Finance Support Council is a collaborative body launched in late 2022, bringing together relevant government ministries and policy finance institutions to enhance the efficiency of policy finance delivery. The meeting was attended by directors-general and directors from the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Environment, the Ministry of Oceans and Fisheries, the Korean Intellectual Property Office, and the Defense Acquisition Program Administration, as well as deputy heads from the Korea Development Bank, the Industrial Bank of Korea, the Korea Credit Guarantee Fund, the Korea Technology Finance Corporation, and the Export-Import Bank of Korea.
The Semiconductor Ecosystem Fund, initially announced at the 3rd Policy Finance Support Council meeting in June 2023, has been established and managed with a total of 300 billion won over a three-year period.
Following the joint inter-ministerial 'Comprehensive Support Plan for the Semiconductor Ecosystem' in June of last year, the fund evolved into a government-backed investment fund. Its scale was subsequently increased from the original 300 billion won to 1.1 trillion won, representing an augmentation of 800 billion won. With the budget for the Semiconductor Ecosystem Fund approved and finalized by the National Assembly at the end of last year, the government has earmarked 120 billion won for new funding this year.
Compared to the initial plan, an additional 25 billion won will be contributed from the public sector, with 10 billion won from the Industrial Bank of Korea, 10 billion won from the Growth Ladder Fund 2, and 5 billion won from the Korea Development Bank, increasing the total public sector contribution from 30 billion won to 55 billion won.
Deputy Commissioner Kim stated, “I express my gratitude to the Industrial Bank of Korea and the Korean Intellectual Property Office for their cooperation in investing during these challenging times. With the reduced pressure to attract private capital, I hope that the fund will be formed and invested swiftly, contributing to the enhanced competitiveness of the semiconductor ecosystem.”
2. Samsung Electronics Jeon Young-hyun Vows to Avoid HBM Missteps
"We are fully committed to ensuring that the challenges we faced last year will not be repeated with our next-generation High Bandwidth Memory (HBM), HBM4."
During the Samsung Electronics annual general meeting, Jeon Young-hyun, the head of the Device Solutions (DS) division at Samsung Electronics, stated, "We anticipate ramping up production of our 12-layer HBM3E product as early as Q2, or no later than the second half of this year, to meet customer demand." He added, "We are also steadily preparing for next-generation HBMs such as HBM4 and custom HBM solutions, according to our planned roadmap. Currently, we are actively incorporating customer feedback to enhance product competitiveness."
Following the shareholders meeting, the board of directors officially appointed vice chairman Jeon as CEO. This establishes a dual-CEO structure, with vice chairman Jeon leading the semiconductor business and vice chairman Han Jong-hee overseeing the Device eXperience (DX) division, which includes mobile and consumer electronics. Additionally, Shin Je-yoon, former chairman of South Korea's top financial regulator, was appointed as the new chairman of the board. Samsung Electronics separated the roles of chairman of the board and CEO in March 2018 to strengthen the transparency and independence of the board.
During the 'Dialogue with Shareholders' held immediately after the shareholder meeting, the executive team repeatedly expressed their commitment to meeting expectations, stating, “We will not disappoint you again.” The dialogue included a full turnout of executives from all business units, including vice chairman Jeon, vice chairman Han Jong-hee, Roh Tae-moon the president and head of Samsung Electronics' Mobile eXperience (MX) division, Han Jin-man the head of the foundry business, Song Jae-hyuk the DS division CTO and head of the semiconductor R&D Center, and Yong Seok-woo the head of the Visual Display (VD) business. They answered the shareholders' challenging questions directly.
In response to a question regarding the supply status to Nvidia, Samsung's largest HBM customer, vice chairman Jeon stated, “We acknowledge that we missed the initial market opportunity due to a delayed understanding of the HBM trend. However, we have established a foundation for organizational restructuring and technological development.” He added, “We anticipate a significant increase in the supply of our 12-layer HBM3E product this year compared to last year, which should allow us to establish a stronger position in the market.” Regarding the overall memory market conditions for DRAM and NAND flash, he noted, “We foresee improved performance in the second half of the year, driven by increased investments in Artificial Intelligence (AI) and customer inventory depletion.
Shareholders raised several questions regarding the foundry (semiconductor contract manufacturing) and system semiconductor businesses, which have been experiencing substantial losses. A key concern was the widening gap with TSMC, the world's leading foundry. Han Jin-man, president of the foundry business since the end of last year, stated, “I have been working to understand both our internal technological development status and how we are perceived by external customers.” He added, “I believe that Samsung foundry is still competitive, and our primary goal is to achieve profitability in the shortest possible timeframe.”
President Han highlighted Samsung's ability to provide comprehensive semiconductor services, including foundry, memory, and packaging, as a key competitive advantage. He stated, “Samsung is the only company in the world that can provide both foundry and memory services simultaneously,” adding, “We intend to intensify collaboration with the memory business unit.” He also emphasized that Samsung will enhance its competitiveness in advanced processes of 1-2 nanometers, including further developing the Gate-All-Around (GAA) technology, which Samsung first commercialized in the industry in 2022.
Park Yong-in, president of the system LSI business, which designs system semiconductors such as Application Processors (APs) and image sensors, the 'brains' of smartphones, stated, “With the advent of the AI era, the importance of image sensors that can see and learn like humans is growing.” He added, “We will prepare for the AI era by developing and enhancing image sensors that can capture what is invisible to the naked eye, as well as security chips and power management semiconductors.”
In response to shareholders' concerns about China catching up to Samsung in various areas, including semiconductors, smartphones, and consumer electronics, the management team collectively emphasized their commitment to maintaining a 'technological lead' to outpace the competition. Regarding the market penetration of Chinese DRAM manufacturers like ChangXin Memory Technologies (CXMT), vice chairman Jeon stated, “Chinese companies still lack the technological capabilities and are primarily focused on low-end products like DDR4.” He added, “We will prepare for the competition by accelerating the development of advanced semiconductors and reducing power consumption, thereby differentiating ourselves through technological innovation.”
3. Hyundai Mobis Speeds Up In-House Development of Automotive Semiconductors, Expanding Mass Production Successes
- Hyundai Mobis to expand mass production of in-house designed automotive semiconductors through foundry
- R&D achievements increased in just 5 years after acquisition of Hyundai AUTRON
- Hyundai Mobis to establish specialized research hub in Silicon Valley this year
Hyundai Mobis is increasing the number of successful production cases for its in-house designed automotive semiconductors, five years after acquiring the semiconductor business from Hyundai AUTRON in 2020. The strategy is to enhance the competitiveness of controllers and core components by incorporating directly designed semiconductors.
Hyundai Mobis announced on the 18th that it will begin mass production this year after completing R&D and reliability verification for semiconductors used in core components such as electrification, electronics, and lamps. While Hyundai AUTRON previously focused on developing drive system semiconductors for internal combustion engines, Hyundai Mobis has expanded the scope of semiconductor R&D to include major order items.
Key semiconductors set for mass production this year include a power integrated chip that combines power control functions for electric vehicles, and lamp driver semiconductors. The company is also accelerating the development of next-generation products for the battery management IC already being supplied. These battery management IC monitor the charging status of electric vehicles and contribute to safety.
Hyundai Mobis has been dedicated to R&D in automotive semiconductors for the past several years as a core technology to lead future mobility. To this end, Hyundai Mobis is reportedly operating a separate Semiconductor Business Unit and has secured approximately 300 specialized personnel.
The reason Hyundai Mobis is pursuing the in-house development of automotive semiconductors is due to the rapid electrification of the mobility industry. According to a global research firm, currently mass-produced vehicles contain as many as 3,000 semiconductors. As autonomous driving and electrification technologies are increasingly applied, the required quantity is also rapidly increasing.
Hyundai Mobis is also working with major companies, partners, and research institutions to improve its ability to respond to semiconductor supply and demand. The company aims to contribute to the competitiveness of finished vehicles and the stability of the supply chain by establishing a domestic automotive semiconductor ecosystem.
Since acquiring Hyundai AUTRON, Hyundai Mobis has reorganized its portfolio, clarifying its R&D direction towards focused investment in two areas: power semiconductors and system semiconductors.
First, Hyundai Mobis aims to complete the electrification value chain through the internalization of power semiconductor design. Power semiconductors improve the driving range and performance of electric vehicles. Currently, Hyundai Mobis is mass-producing "power modules," which are larger units that integrate multiple power semiconductors and add cooling functions.
Hyundai Mobis plans to have a complete lineup of EV powertrains, ranging from power semiconductors and power modules to inverters, motors, and PE systems. Since power semiconductors are a key factor in determining performance and cost, internalizing them will enhance the competitiveness of next generation drive systems.
System semiconductors are those that perform various functions such as power, drive, communication, sensing, and networking. As the number of controllers required to implement autonomous driving and software defined vehicles (SDVs) increases, semiconductors are emerging as a key component for competitiveness.
Hyundai Mobis plans to strengthen its independent semiconductor design capabilities for strategic system semiconductor products, while also improving supply chain responsiveness by establishing a separate ecosystem for other semiconductors. As a parts supplier, the company's strategy is to expand the range of customized new technologies it can offer to customers by having the capability to design hardware, software, and even semiconductors in a one-stop manner.
In accordance with its mid- to long-term semiconductor R&D strategy, Hyundai Mobis is focusing its R&D capabilities with the goal of mass-producing silicon-based high-power semiconductors in the coming year, and next-generation battery management ICs and silicon carbide-based power semiconductors in 2028 and 2029, respectively.
This year, Hyundai Mobis will strengthen collaboration with global semiconductor companies and establish a specialized research hub in Silicon Valley, USA, to secure outstanding talent from overseas. The Silicon Valley research hub will be operated on a two-track system along with the domestic research institute. Semiconductor design technologies tailored to local conditions will be developed in both domestic and overseas locations.
Ⅲ. BATTERY INDUSTRY TREND
1. SK On Secures KRW 15 Trillion Battery Supply Deal with Nissan
- 6-year contract to power 1 Million Electric Vehicles
- First partnership with Japanese company amid demand slowdown
- Production at North American plant to expand supply sources
SK On has entered into a significant electric vehicle (EV) battery supply contract with the Japanese automaker Nissan. This marks SK On's first agreement with a Japanese automaker, under which the company will supply batteries for approximately 1 million mid-sized EVs over the next six years.
On the 19th, SK On announced that it has signed a battery supply contract with Nissan. The agreement entails the supply of high-performance, high-nickel pouch cell batteries totaling 99.4 GWh to Nissan over a six-year period from 2028 to 2033.
This marks the first time SK On securing a Japanese automaker as a client. Given the current EV chasm (demand slowdown), the acquisition of a new client is particularly significant. SK On, which already counts Hyundai Motor Group, Ford, Volkswagen, and Daimler among its customers, has now added another major client. While the specific contract amount with Nissan has not been disclosed, industry estimates suggest that the total contract amount could exceed 15 trillion won, considering the supply volume.
Nissan plans to integrate SK On batteries into four next-generation EV models intended for the North American market, which will be produced at its Canton, Mississippi plant. As one of Japan’s three major automotive manufacturers alongside Toyota and Honda, Nissan launched the world's first mass-produced EV, ‘LEAF,’ in 2010. Last year, the company expressed its commitment to transitioning to EVs by announcing that 16 out of 30 new models set to be released globally over the next three years will be electric. Starting in 2028, Nissan will produce two SUV models and two sedan models in the U.S. market.
SK On also plans to produce the batteries to be supplied to Nissan in North America. This contract is viewed positively as it expands SK On's supply base in the region. The company is already operating its own plant in Georgia and is in the process of constructing four new facilities in Georgia, Kentucky, and Tennessee through joint ventures. Once all four plants are constructed, SK On's maximum battery production capacity in the U.S. will increase to 180 GWh.
According to market research firm SNE Research, SK On's global EV battery usage was 39.0 GWh last year. With this new contract, the company has secured an additional supply amounting to approximately 40% of its annual battery usage. Nissan is also expected to accelerate its electrification efforts by securing a stable battery supply source in the key North American market.
Lee Seok-hee, CEO of SK On, stated, "Our technological capabilities and competitiveness have been recognized once again." He added, "We will actively leverage our production capabilities and expertise in the key North American market to support our partners in their successful transition to electric vehicles."
2. Samsung SDI Aims to Complete Development of Next-Gen P7 Prismatic Battery This Year
At the general meeting of shareholders, Samsung SDI announced its commitment to completing the development of its next-generation premium prismatic battery, P7, this year. Furthermore, the company will enhance its competitiveness in the premium market by launching the 46-phi battery starting in Q1. Regarding the capital increase, Samsung SDI stated that it would thoroughly explain the rationale to the financial authorities.
Samsung SDI CEO Choi Joo-sun attended the 55th Annual General Meeting of Shareholders held at the Eliena Hotel in Gangnam-gu, Seoul this morning.
At the meeting, all four agenda items were approved, including: ▲approval of the financial statements, ▲the appointment of Choi Joo-sun as an inside director, ▲approval of the director compensation limit, and ▲certain amendments to the articles of incorporation. Mr. Choi was officially appointed as a new inside director.
Prior to his appointment as CEO of Samsung SDI at the end of last year, Mr. Choi held various key positions, including Head of DRAM Development at Samsung Electronics' Memory Business, Head of the Americas division at DS, and CEO of Samsung Display.
The director compensation limit was set at 10 billion won. Samsung SDI stated that 5.5 billion won was utilized from the previous year's limit of 12 billion won. This year's limit has been reduced by 2 billion won compared to last year, taking into account the uncertain domestic and international business environment.
Regarding the decision to implement a capital increase, the company stated, “We believe it is crucial to secure a robust financial structure in order to operate and grow the business in a stable manner. We are committed to continuous technological innovation and building global production capabilities to prepare for the upcoming super cycle.”
The company outlined three key strategies: strengthening technological competitiveness, expanding sales and orders, and driving cost innovation. CEO Choi emphasized, “We are committed to achieving our vision of ‘realizing a sustainable and eco-friendly future society through unparalleled technological capabilities’ and enhancing shareholder value through this.”
Following the general meeting, when asked about the Financial Supervisory Service (FSS) designating Samsung SDI's capital increase as its top priority for review, Mr. Choi responded, “We will ensure that the rationale behind the capital increase is clearly explained to the financial authorities.”
In response to the question, 'How are you communicating with the Trump administration regarding the IRA?', the company stated, “We have personnel in Washington who are communicating on our behalf. We are working diligently to address the situation effectively.”
Furthermore, Samsung SDI has implemented an electronic voting system and introduced online live streaming of its shareholder meetings since 2021. As part of its ESG management efforts, the company has also replaced postal mailings with electronic notices and enabled shareholders to view dividend information on the company's website and mobile devices.
3. Next-Gen Battery with 1000km Range on a Single Charge. Solution to Prevent Explosions Found
- UNIST and international research team present strategy to suppress oxygen gas generation in over-lithiated cathode materials
A solution to prevent explosions in next-generation, long-range electric vehicle (EV) batteries, capable of traveling 1000km on a single charge, has been discovered.
A research team led by Professor Hyun-Wook Lee at the Ulsan National Institute of Science and Technology (UNIST) has identified the cause of oxygen release in over-lithiated materials, a new type of battery anode material, and presented design principles for materials that can address this issue on the 18th.
Over-lithiated materials theoretically offer the potential to store 30-70% more energy in batteries through high-voltage charging (above 4.5V). This translates to a potential driving range of up to 1000km on a single charge for EVs. However, the practical application of these materials has been hindered by the risk of explosion. During high-voltage charging, oxygen (O-2) trapped within the material oxidizes and is released as a gas (O2), creating a significant safety hazard.
The research team analyzed that oxygen gas is released due to partial structural deformation caused by oxygen oxidation around 4.25V. To address this, they proposed a electrode material design method that fundamentally prevents this oxygen oxidation. This strategy involves substituting a portion of the transition metals in the over-lithiated material with transition metal elements that have lower electronegativity.
The electronegativity difference between the two metal elements results in electrons concentrating around the element with higher electronegativity. This, in turn, increases the number of available electrons in the transition metal, preventing oxygen from oxidizing. Conversely, when the transition metal lacks sufficient available electrons, oxygen donates its electrons and oxidizes, leading to its release in gaseous form.
Dr. Minho Kim, the first author of the study and a current postdoctoral researcher at UCLA, explained, “Previous research primarily focused on stabilizing oxidized oxygen to prevent its release as a gas. In contrast, this study differentiates itself by focusing on preventing the oxidation of oxygen itself.”
Furthermore, this change in electron density, can increase the charging voltage through the inductive effect, leading to higher energy density. Since energy density is proportional to both the number of available electrons and the charging voltage, this transition metal substitution strategy allows for the storage of more energy per unit weight of the battery. This principle is similar to a dam, where the more water it holds and the greater the height of the drop, the more energy can be stored.
The research team experimentally verified the oxygen oxidation suppression effect of the transition metal substitution strategy. Accelerator-based X-ray analysis revealed a significant reduction in oxygen gas generation when a portion of ruthenium was replaced with nickel. Furthermore, Density Functional Theory (DFT) calculations theoretically demonstrated the occurrence of charge redistribution.
This research was a collaborative effort involving Professor Dong-Hwa Seo of the Korea Advanced Institute of Science and Technology (KAIST), Chung-Ang University, the Pohang Accelerator Laboratory, Professor Yuzhang Li of UCLA, UC Berkeley, and Lawrence Berkeley National Laboratory. Professor Haesung Jang of Chung-Ang University (co-first author) led the accelerator-based X-ray analysis, and Dr. Eunryeol Lee of Lawrence Berkeley National Laboratory (co-first author) led the DFT theoretical calculations.
Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS
1. Hyundai CEO Muñoz Unveils $90 Billion Investment Plan in Developing 21 New EV Models
- Hyundai to produce Ioniq 5 & 9 in Georgia, U.S.
- Hybrid models coming
- Focus on Casper electric in Europe
- Establishing complete knock down facility in Saudi Arabia
- Hyundai declares breakthrough amidst tariff wars and challenges
Amidst persistent global economic slowdown and an EV market chasm, Hyundai Motor's CEO Jose Muñoz has articulated a commitment to seizing opportunities within crisis by expanding global market share and diversifying product offerings, including electric vehicles. This declaration signifies a direct approach to overcoming both internal and external challenges, including recent tariff disputes originating in the United States and intensified competition stemming from the overseas expansion of Chinese New Energy Vehicle (NEV) manufacturers.
At the 57th Annual General Meeting of Shareholders, Hyundai Motor's CEO Muñoz outlined five key strategic priorities for the year: ▲market share expansion through region-specific optimization strategies, ▲reinforcing leadership in the EV sector, ▲continuous innovation in products and services, ▲expanding strategic collaboration through global partnerships, and ▲cultivating a ‘global one team’ organizational culture.
CEO Muñoz stated, "In the United States, we plan to produce the Ioniq 5 and Ioniq 9 at the Hyundai Motor Group Metaplant America (HMGMA) in Georgia. By establishing a mixed-model production system, we will also add hybrid (HEV) models to our production lineup. Through our localization strategy in the U.S., we will flexibly respond to any policy changes." He further added, "In Europe, we will launch EV models such as the Casper Electric. We also aim to actively target the Middle Eastern market by establishing a Complete Knock-Down (CKD) production base in Saudi Arabia in collaboration with local partners."
CEO Muñoz emphasized, "Above all, we will steadily expand the Ioniq lineup this year to generate greater economies of scale." Hyundai Motor is pursuing its 'Strategy 2030,' which involves investing $90 billion over the next decade to develop 21 new electric vehicle models and expand its hybrid model lineup from the current 7 to 14. Muñoz explained, "Hyundai Motor will lead the 'electrification transition' this year by launching 10 new products, including the new Palisade ICE and HEV models, as well as a successor model to the hydrogen-powered Nexo."
CEO Muñoz also revealed the company's commitment to continued investment in the development of new technologies, including Extended Range Electric Vehicles (EREV), Software Defined Vehicles (SDV), and improvements in electric vehicle battery performance. Furthermore, he expressed his dedication to fostering a corporate culture that prioritizes product quality and safety above all else.
2. BYD's EV Sales Stalled for Two Months in Korea Due to Subsidy Delays
- Failure to meet new standards causes subsidy calculation delay
- Delayed sales could lead to depletion of local government subsidy budgets
Chinese electric vehicle manufacturer BYD is experiencing delays in its sales operations within the South Korean market. Despite having entered the market two months ago, the company has yet to meet the necessary requirements to qualify for EV subsidies. This situation contrasts with competitors who have already commenced sales, potentially leading to a weaker-than-anticipated performance for BYD this year if the subsidy approval process continues to be prolonged.
According to sources within the automotive industry on the 16th, BYD Korea has recently posted an apology letter on its website addressing the delays in the delivery of its vehicles. Despite having initiated pre-orders for the ATTO 3, its first compact SUV model in the South Korean market, on January 16th, BYD has yet to commence deliveries to customers.
While the ATTO 3 successfully completed the certification processes with the Ministry of Trade, Industry and Energy, the Ministry of Environment, and the Ministry of Land, Infrastructure and Transport last year, the vehicle is pending final approvals. Specifically, it is awaiting the Ministry of Environment's calculation of EV subsidies and registration as an environmentally friendly vehicle by the Ministry of Trade, Industry and Energy, both of which are prerequisites for commencing deliveries.
Starting this year, the Ministry of Environment has mandated that manufacturers must equip vehicles with battery State of Charge (SoC) information to qualify for EV subsidies, a requirement that BYD has not yet implemented. While BYD has submitted a letter of commitment to provide battery charging information within one year, the Ministry of Environment has reportedly requested additional data to facilitate the subsidy calculation process.
With deliveries delayed for over two months since the commencement of pre-orders, customer dissatisfaction is growing. BYD has attempted to appease customers by offering a charging benefit valued at 300,000 won upon vehicle delivery. However, recent reports indicate an increase in both complaints and inquiries regarding potential contract cancellations.
The delivery delays have diminished initial expectations that BYD would generate significant momentum in the South Korean market. In contrast, Hyundai, Kia, and Tesla have already completed the subsidy calculation process and initiated sales starting last month. While subsidy calculations typically conclude in February, this year the process was expedited, with the subsidy amounts finalized in January, one month earlier than usual.
Last month, Kia recorded sales of 2,045 units of the EV3 and 859 units of the EV6, respectively. Hyundai also sold 1,357 units of the IONIQ 5, a competing model to the ATTO 3. Led by its flagship Model Y (2,040 units), Tesla achieved total sales of 2,222 units last month.
Industry analysts anticipate that it will be difficult for BYD to meet the Ministry of Environment's standards within this month. If the subsidy calculation is finalized by the end of next month, actual sales could commence in May. This would place BYD three months behind major competitors such as Hyundai and Kia, who initiated sales in February.
Since BYD's entry into the South Korean market, Hyundai and Kia have increased their discount offerings on EVs. Hyundai has implemented a 1 million won discount on the IONIQ 5 and IONIQ 6, and the sales price for the IONIQ 9, a large SUV launched this year, has been set at a lower-than-expected range of 60 million won. Kia has also applied discounts of up to 2.5 million won on models such as the Niro EV and EV6.
An automotive industry official stated, "EV sales are typically highest immediately following subsidy confirmation, making first-quarter performance crucial for the entire year. Even if BYD receives subsidy approval and commences sales belatedly, there is a high probability that a significant portion of the EV subsidy budgets allocated by local governments will have already been depleted by that time."
3. Hyundai Engineering Selected as Subsidized EV Charging Station Provider for Third Consecutive Year
- Operates approximately 7,100 chargers nationwide... Targeting global market expansion
Hyundai Engineering announced on the 26th that it has been selected as the '2025 operator for electric vehicle slow charging facility subsidies' by the Ministry of Environment for three consecutive years.
This initiative, undertaken by the Ministry of Environment to promote the widespread adoption of EVs, provides subsidies based on the number of installations and charger specifications when constructing public slow-charging facilities in residential buildings, workplaces, and large parking lots.
The Ministry of Environment annually selects project execution institutions based on an evaluation of operators with capabilities spanning from charging facility installation to post-management. The assessment considers indicators such as operational status, business management, user convenience, project execution, maintenance, chargers, and charging services.
Hyundai Engineering has been selected as a project execution institution for three consecutive years since 2023, in recognition of its installation and operational management capabilities in EV charging facilities.
Hyundai Engineering has established a dedicated team and is expanding its business in various areas, including construction and installation, operation, and maintenance services. To date, it operates approximately 7,100 chargers nationwide. The company also plans to establish EV charging infrastructure in overseas markets, including North America, Indonesia, India, and Europe.
A related official of Hyundai Engineering stated, "Being selected for three consecutive years demonstrates our proven capabilities in EV charging facility construction and operation. We plan to promote a stable Electric Vehicle Charging (EVC) business through portfolio diversification, including expanding domestic EV charging infrastructure, electric vehicle charging operator (CPO) business, EV bus infrastructure development, and home charger installations."
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Korean Industrial Insight No.13 of AI, Semiconductors, Batteries and Electric vehicles in Chinese
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