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Korean Industrial Insight No. 21 of AI, Semiconductors, Batteries, Electric vehicles, and Bio

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2026-02-02

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Ⅰ. AI INDUSTRY TRENDS

1. The World’s First ‘AI Framework Act’ Comes into Full Effect on the 22nd: A ‘Premature Start’

South Korea will fully enforce the “Framework Act on the Development of Artificial Intelligence and the Establishment of a Trust-Based Environment” (AI Framework Act) starting on the 22nd. While this comprehensive AI legislation is the second following the European Union (EU), South Korea is the first country to implement it in full. However, concerns remain about its incomplete aspects, signaling the need for further institutional improvements.
The Ministry of Science and ICT announced on the 21st that the AI Framework Act, which establishes legal governance for AI, promotes industrial activation and infrastructure development, and ensures safety and trust, will take effect on the 22nd.
The AI Framework Act emphasizes industry promotion over regulation. It provides the legal foundation for the National AI Strategy Committee—the nation’s AI policy control tower, constructs and supports AI research and development (R&D) and training data, encourages the adoption and utilization of AI technologies along with real-world validation bases, fosters international cooperation and market expansion overseas, and designates AI cluster zones.
The Ministry explained that under the principle of minimum necessary regulation, the law minimizes obligations and sanctions on AI operators, while broadly supporting measures to promote the AI industry.
Regulatory provisions focus primarily on transparency obligations, safety obligations, and high-impact AI. The framework mandates the AI operators to disclose when outputs are generated by AI. For outputs such as animations or webtoons that are easily distinguishable from real images unlike deepfake materials, subtle watermarks that are invisible to the naked eye may be applied.
These transparency obligations apply to operators of generative AI models, including developers like Google and OpenAI and service providers using these models. This does not apply to general users of AI outputs.
Safety obligations aim to prevent significant social harm from highly developed AI potentially becoming uncontrollable. Operators of ultra-high-performance AI systems—defined as those involving cumulative training computations exceeding 10^26 floating-point operations (FLOPs)—must identify, evaluate, and mitigate risks throughout the AI lifecycle and establish risk management systems to monitor and respond to AI-related safety incidents. Currently, the government states that no AI models worldwide meet this threshold.
High-impact AI refers to systems that significantly affect or potentially jeopardize human life, physical safety, or fundamental rights. Operators of such systems are required to implement risk management and user protection measures. Determination of high-impact AI considers whether the system is used in any of ten legally designated sectors—including energy, drinking water, healthcare, nuclear power, criminal investigations, recruitment, loan screening, transportation, public services, and education—along with the severity of risks and the extent of human involvement.
A Ministry official clarified that AI recommendations for recruitment are not classified as high-impact AI if final decisions are made by human personnel. Autonomous driving systems at level 4 or above were cited as an example in the transportation sector. The government also anticipates that currently there are very few AI systems classified as high-impact.

Violations of duties under the AI Framework Act may incur fines up to KRW 30 million, but regulatory enforcement will be deferred for at least one year to minimize business disruption.
Industry stakeholders have raised concerns about ambiguous criteria related to high-impact AI and transparency obligations, fearing excessive burdens. In response, the government will operate an “AI Framework Act Support Desk” to handle corporate inquiries.
There is also skepticism regarding the regulation of foreign AI services such as ‘Grok,’ which recently generated controversy over child deepfake content. The government explained that individual illegal dissemination of deepfake content is addressed under existing laws including the Information and Communications Network Act and the Sexual Violence Punishment Act.
Starting next month, the government plans to establish a “Regulatory Improvement Research Group” comprising industry, civil society, and academia to identify and propose enhancements to the AI regulatory framework.

2. The Bank of Korea Unveils Proprietary AI ‘BOKI’ in Collaboration with Naver

- First among central banks worldwide
- Joint AX conference with Naver showcases financial and economic specialized AI ‘BOKI’
The Bank of Korea (BOK) publicly introduced on the 21st an AI application specialized in the financial and economic sectors, developed independently through a public-private partnership with Naver.
In a joint AI Transformation (AX) conference held at the BOK Conference Hall in Jung-gu, Seoul, BOK and Naver unveiled ‘BOKI’ (Bank Of Korea Intelligence), a sovereign AI system.
BOKI is built on the Bank’s internal network (on-premise), marking a global first among central banks.
Under this project, Naver provided cloud infrastructure and a large-scale language model (LLM), while BOK directly developed AI applications tailored specifically for financial and economic use.
Since 2020, the BOK has focused on enhancing investigation and research capabilities utilizing advanced digital technologies such as AI and machine learning, alongside establishing data governance frameworks to strengthen its digital competencies.
The BOKI development commenced in earnest in 2024, involving the digitization of internal materials, the installation of Naver’s HyperCLOVA X model, and the development of various AI service applications.
BOKI services comprise five key pillars directly related to core Bank operations, with plans for further segmentation and expansion according to specific business areas.
Specifically, BOKI includes BOKI.ra (Research Assistant) that answers user queries based on diverse research data, BOKI.ca (Compliance Assistant) that provides accurate, evidence-based, and tailored responses grounded in internal regulations and guidelines.
Also, BOKI.da (Document Assistant) designed for summarization, comparative analysis, and Q&A of user-uploaded documents, BIDAS.ai (BOK Integrated Data Analytics System + BOKI) that facilitates data search and suggests analytic approaches via natural language, and BOKI.tr (Translator) which translates Bank-published materials.
In his welcoming remarks, the Governor of the BOK stressed the need for sovereign AI capable of deeply understanding Korea’s financial and economic history, institutions, and cultural particularities. He emphasized that collaborating with domestic company Naver to develop AI will serve as a catalyst for further invigorating Korea’s AI industry through public-private cooperation.
The Governor also noted that approximately 1.4 million internal documents have been standardized into a format understandable by AI during the preparation for AI adoption. He highlighted that the planned completion of network separation improvements in March will greatly enhance the scope and performance of AI applications.
The BOK expects that BOKI will dramatically accelerate operational workflows and is committed to expanding public services as well as actively sharing experiences with related institutions.
A BOK official described the BOKI project as a model case of sovereign AI achieved through public-private partnership that not only improves overall operational efficiency but also contributes significantly to Korea’s AI ecosystem development.

3. Lee Jae-myung Administration Reverses Nuclear Policy Amid AI-Driven Power Demand Surge. Considers Additional Reactors Beyond Planned Two

- Two new reactors scheduled for completion in 2037 and 2038; Climate Minister keeps door open for further expansion
- Pressure to reduce coal and gas use combined with skyrocketing power demand from AI and semiconductor sectors shapes energy policy shift
The Lee Jae-myung administration has decisively moved away from the previous Moon Jae-in government’s “nuclear phase-out” stance by opting to fully implement the 11th Basic Plan for Electricity Supply and Demand (BPE) as originally proposed, which includes the construction of two new nuclear power plants.
This move represents a significant policy reversal of President Lee’s earlier skepticism toward nuclear energy, signaling a pragmatic U-turn recognizing nuclear power as an indispensable baseload source to meet soaring electricity demands driven by industries such as artificial intelligence (AI) and semiconductors, while also pursuing carbon neutrality.
On the 26th, Kim Sung-hwan, Minister of Climate, Energy, and Environment, announced at a briefing held at the Sejong Government Complex that the government would proceed with building two large-scale nuclear reactors and one small modular reactor (SMR) as outlined in the current BPE.
Notably, the administration is keeping options open to consider additional reactor construction in the forthcoming 12th BPE, shifting the nation’s energy strategy toward a “two-track” system emphasizing both nuclear power and renewable energy.
The Ministry of Climate cited public engagement efforts, including two policy forums held in December last year and earlier this month (7th), as well as two nationwide opinion surveys reflecting citizens’ views. According to the results, renewable energy and nuclear power were ranked highest as sources warranting expansion, with over 80% of respondents supporting nuclear power’s necessity and more than 60% supporting the construction of new nuclear plants.
This official endorsement contrasts with President Lee’s earlier remarks expressing reservations about new nuclear projects, where he commented that nuclear power would be viable only if suitable sites were available and safety assured, while suggesting doubts over its practical viability, sparking speculation that the government might not fully follow through on the 11th BPE.


Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS

1. Kospi Index Surpasses 5000, Driven Primarily by Semiconductors

- The Korea Exchange achieves the milestone of 5000 points after 70 years since its establishment.
- Clear concentration on semiconductors and AI; large-cap stocks like Samsung Electronics drive the market rally.
- Export semiconductor share hits a all-time high of 24.4%, sparking concerns about a ‘Taiwan-style economy.’
- High exchange rate around 1,400 won per US dollar and sluggish traditional manufacturing create multiple challenges.
- Securities analysts warn of severe sector concentration, emphasizing the need to overcome the gap between the index and fundamentals.
The Kospi index surged past the historic 5000 mark, hitting an all-time high. Year-to-date, the Kospi has climbed roughly 20%, outpacing many major global stock markets.
However, financial analysts highlight that this rally is heavily concentrated in specific sectors, notably semiconductors and AI-related stocks. Despite the index’s record highs, excluding major semiconductor players, the broader market’s upward momentum appears less robust.
◇ Kospi index increase rate remains 7% range without semiconductor; sectoral divergence widens
The recent surge has been primarily propelled by the semiconductor sector. Samsung Electronics and SK Hynix now account for about 36% of the Kospi’s total market capitalization—a record share. While the Kospi index increased by nearly 20%, stocks outside these two key firms rose by a more modest single-digit rate of approximately 9%.
An examination of individual stock performance reveals a contrasting picture: during the same period, 427 stocks rose whereas 493 declined, meaning the number of falling stocks exceeded gainers by 66.
Earnings forecasts also diverge by sector. Upward revisions for operating profit estimates at Samsung Electronics and SK Hynix have supported the index's ascent. Conversely, projected earnings for non-semiconductor companies have generally been adjusted downward.
In terms of market flows, the concentration trend continues. According to the Korea Exchange, foreign investors have net purchased 2.62 trillion won in the Kospi since the beginning of the year until the 21st, while net selling of 585 billion won was recorded in the Kosdaq market.

2. Semiconductor Exports Surge. January 1 to 20 Export Value Reaches USD 36.4 Billion

- Trade with both the U.S. and China increases
- January exports hit highest ever for the first 20 days, semiconductor exports up 70% year-on-year
- Imports reach USD 37 billion, with exports to China and the U.S. increasing by 30.2% and 19.3%, respectively
Exports and imports both rose in January, driven by increased trade with key partners including the United States and China. Notably, semiconductor exports soared by 70% compared to the previous year.
According to the Korea Customs Service on the 21st, between January 1 and 20, exports totaled USD 36.4 billion, an increase of 14.9% (USD 4.72 billion) year-on-year, while imports amounted to USD 37 billion, up 4.2% (USD 1.48 billion).
This export figure for the first 20 days of January surpasses the previous record of USD 34.6 billion set in 2022, marking the highest performance on record. The trade balance for the period recorded a USD 600 million deficit.
By product category, exports recorded notable growth in semiconductors (70.2%), petroleum products (17.6%), wireless communication devices (47.6%), and computer peripherals (41.2%). In contrast, exports declined in passenger cars (10.8%), ships (18.1%), and automotive parts (11.8%).
The substantial increase in semiconductor exports lifted their share of total exports to 29.5%, up 9.6%.
Exports increased to major trade partners including China (30.2%), the United States (19.3%), Vietnam (25.3%), and Taiwan (57.1%), while exports to the European Union (14.8%) and Japan (13.3%) declined.
On the import side, year-on-year growth occurred in semiconductors (13.1%), semiconductor manufacturing equipment (42.3%), and precision instruments (14.1%). Imports of crude oil (10.7%), gas (23.1%), machinery (0.7%), and petroleum products (7.3%) decreased.
Imports rose from countries such as China (3.1%), the United States (5.3%), the European Union (26.6%), and Australia (15.9%), but declined from Japan (0.1%) and Saudi Arabia (25.1%).

3. 2025 Semiconductor Exports Account for Nearly 25%, Surpassing Passenger Cars by Double

South Korea’s semiconductor exports accounted for nearly 25% of the nation’s total exports last year, leading the country’s export growth. The export volume of semiconductors exceeded twice that of passenger cars, the second-largest export item.
According to the Korea Customs Service’s report, “2025 Korea Export-Import Statistics,” released on the 26th, last year’s total exports reached USD 704.9 billion, marking a 3.8% increase from the previous year and surpassing the 700 billion USD milestone for the first time. Imports totaled USD 631.8 billion with little change, resulting in a trade surplus of USD 77.7 billion—the largest since 2017.
Semiconductors were the core driver of export growth. Semiconductor exports reached USD 175.3 billion in 2025, up 21.9% year-on-year, achieving record highs for two consecutive years. Their share of total exports was 24.7%, more than double the second-ranked export item, passenger cars, which stood at USD 68.5 billion.
In imports, semiconductors also topped the list with USD 77.5 billion, surpassing crude oil. The government attributed these trends to structural shifts in trade driven by the transition into the AI era.
Among major export items, passenger car exports grew by 0.3% from the previous year despite uncertainties such as U.S. tariff policies, supported by increased shipments to the European Union and Canada. Conversely, exports of steel products and petroleum declined by 4.5% and 9.4%, respectively.
The top five export categories, such as semiconductors, passenger cars, steel products, petroleum products, and ships, accounted for 51.7% of total exports.
The export market also showed clear signs of diversification. Last year, South Korea exported to 210 countries, with exports rising in 121 countries. While exports to China and the United States fell by 1.7% and 3.8%, respectively, growth in exports to the EU (3.0%), Vietnam (7.6%), and Taiwan (44%), offset the overall declines. Exports to Southeast Asia particularly surged by 12.8% year-on-year.


Ⅲ. BATTERY INDUSTRY TREND

1. LG Energy Solution Begins Production of Next-Generation Sodium-Ion Battery, First in Korea

- LG Energy Solution is set to begin production of sodium-ion batteries this year.
Industry attention is focused on whether LG Energy Solution can reshape the sodium-ion battery market, which is currently dominated by China.
According to the industry on the 20th, LG Energy Solution is planning to establish a pilot production line for sodium-ion batteries at its Nanjing facility in China. This pilot line aims to validate mass production feasibility by simulating large-scale manufacturing.
Following research and development conducted at its technology research center in Daejeon, LG Energy Solution produces prototype A-samples at its “mother factory” in Ochang, Chungbuk. The B-samples (near-final products) and C-samples (mass-production-ready products) will then be manufactured at the Nanjing plant.
It is understood that the pilot line for sodium-ion batteries will be set up at the Nanjing factory, reflecting the strategic move to leverage China’s strong supply chain of cathode materials and other key components, since China leads this market segment.
LG Energy Solution is expected to complete the pilot line construction and begin sample production within this year, which is anticipated to accelerate the commercialization of next-generation batteries.
Sodium-ion batteries use sodium as a raw material instead of lithium, which is classified as a scarce resource. Sodium reserves are more than 1,000 times abundant compared to lithium, offering easier procurement and better cost competitiveness. Additionally, sodium-ion batteries exhibit less performance degradation at low temperatures and enhanced thermal stability at high temperatures.
Currently, China dominates the sodium-ion battery market. Chinese firm HiNa Battery Technology unveiled the first electric vehicle prototype equipped with sodium-ion batteries in 2023, while companies such as CATL and Farasis have also achieved development success. Notably, CATL announced plans last year to mass-produce its second-generation sodium-ion battery “Naxtra,” capable of driving 520 kilometers after a 5-minute charge.
In South Korea, sodium-ion batteries have yet to reach commercialization. Companies including LG Energy Solution, Samsung SDI, and SK On are currently in the research and development phase.
LG Energy Solution is focusing its next-generation battery development efforts on solid-state, lithium-sulfur, bipolar, and sodium-ion battery technologies.

2. SK On Resolves Silicon Anode Challenge in Solid-State Batteries, Publishes Findings in International Journal

- Developed new binder material enhancing performance stability and reducing manufacturing costs
SK On has made a breakthrough in overcoming the critical performance degradation issue that has impeded the commercialization of silicon anode solid-state batteries.
SK On, in collaboration with Professors Jung Yoonseok and Kim Junghoon of Yonsei University, announced on the 15th, that it has developed a new binder material optimized for silicon anodes called “electron-conductive polymer (PPMA).” This new binder simultaneously achieves electrical conductivity and adhesion, resolving structural safety issues inherent in conventional silicon anode solid-state batteries.
The findings were published on the 5th last month in the prestigious international journal Nature Communications. Peer reviewers highlighted the study’s significance in extending the application of conductive polymer binders—previously restricted to liquid electrolyte batteries—to stable use within solid-state battery environments, thereby broadening their application scope.
SK On successfully operated silicon anode solid-state batteries using the new binder under pressure conditions approaching commercialization standards. This milestone marks a meaningful advancement beyond laboratory-scale prototypes, validating the technology in high-energy-density pouch batteries under realistic electric vehicle conditions. Notably, the battery maintained stable initial capacity without degradation after hundreds of charge-discharge cycles.
Silicon anodes are regarded as critical materials for next-generation high energy density batteries, offering theoretical capacities approximately ten times higher than graphite. However, commercialization has been challenged by volume changes exceeding 300% during charge-discharge cycles. This expansion and contraction cause particle contact loss and increased internal resistance, degrading not only energy density and capacity but also longevity, output, and efficiency.
Solid-state batteries rely on electrical conduction exclusively through contact between solid electrode particles. Once disrupted, restoration is difficult. To address this, increased use of adhesive binders or the application of high pressure has been typical. However, commonly used binders such as polyvinylidene fluoride (PVDF) are highly insulating, limiting electrode performance improvements as binder quantity increases.
SK On and Yonsei researchers identified that performance decline under low-pressure conditions was primarily due to inhibited electron movement within the electrode, not lithium-ion transport. Accordingly, the newly developed PPMA material is engineered to establish reliable electron pathways throughout the electrode while strengthening silicon particle bonding.
The new binder also simplifies processing and enhances production efficiency. Unlike prior techniques requiring special solvents and high pressure, PPMA enables water-based processing, reducing environmental impact and manufacturing costs. Moreover, the required pressure is decreased by over 80%.

3. Samsung SDI Strengthens Robot Alliance, Developing Atlas Battery

- Hyundai Motor is the sole joint developer
- Considering the application of solid-state batteries
Samsung SDI is enhancing its partnership with Hyundai Motor Group by introducing solid-state batteries for robots, solidifying their ‘robot alliance.’ Both companies are positioning AI robots as a key growth area and accelerating the joint development of batteries specialized for robotics.
According to industry sources on the 25th, Hyundai Motor Group has identified Samsung SDI as its main partner to develop batteries for Atlas. An industry insider explained, “Samsung SDI is the sole partner of Hyundai Motor Group for robot battery development.”
Batteries for robots face more demanding technical requirements than those for electric vehicles. Due to the robot’s structure, there is limited space for batteries, yet the energy density must be high to support its motions and ensure safety. Additionally, battery weight must be kept low to allow robotic mobility.
Samsung SDI and Hyundai Motor Group aim to create batteries optimized for these conditions through broad technology cooperation. In February last year, the two companies signed a memorandum of understanding for developing robot-specific batteries, continuing efforts to tailor Samsung SDI’s cylindrical battery technology for the Atlas robot.
Notably, Samsung SDI is reportedly considering applying its solid-state battery, targeted for mass production next year, to Atlas. At the upcoming ‘InterBattery 2026,’ Korea’s largest battery exhibition in March, Samsung SDI and Hyundai Motor Group plan to jointly showcase their robot and robot battery technologies.
Samsung will also demonstrate future societal applications using Hyundai’s autonomous mobility platform, ‘MOBED,’ and reveal progress on solid-state battery development tailored for robotics.
Unlike electric vehicles, where batteries account for a significant portion of costs, robots have a battery cost share below 5%, making it easier to commercialize high-performance but relatively pricier solid-state batteries in the robotics sector. Samsung SDI supplies batteries not only for MOBED but also for Hyundai’s service robot ‘DAL-e.’
As collaboration strengthens, the industry anticipates that the global humanoid competition will center on ‘Atlas (Hyundai Motor Group–Samsung SDI) vs. Optimus (Tesla–LG Energy Solution).’ Market research firm Fortune Business Insights projects the world humanoid robot market will grow from USD 2.43 billion in 2023 to USD 66 billion by 2032.


Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS

1. Korea’s Electric Vehicle Sales Surpass 200,000 Units for the First Time, Led by China-Made Tesla Model Y

South Korea’s electric vehicle (EV) sales exceeded 200,000 units for the first time, signaling a full recovery from a temporary slowdown in demand. The Tesla Model Y dominated individual model sales, recording 53,970 units, marking a remarkable 169.2% increase compared to the previous year.
According to data released on the 20th by the Korea Automobile & Mobility Association (KAMA), newly registered EVs in South Korea for 2025 reached 220,177 units, marking a 50.1% growth and setting a new all-time high.
Kia maintained its lead by launching four new models (EV4, EV5, EV9GT, and PV5), yet Tesla demonstrated remarkable growth. Compared to 2024, Tesla’s sales increasing by 101.3%, while Kia’s grew by 45.2%, illustrating a significant divergence in growth rates.
Tesla’s China-made Model Y, introduced as the complete redesign ‘Juniper,’ sold 59,893 units last year, surpassing Hyundai’s 55,461 units in sales.
The top ten EV sellers in South Korea included Hyundai, Kia, Tesla, KGM, BMW, Mercedes-Benz, Volkswagen, and Polestar.

Jung Myung-hoon, head of research at KAMA, attributed the sales growth to the government’s early disbursement of EV subsidies, a diverse range of new model launches, and intense promotional activities.
The domestic and imported EV segments showed contrasting trends last year.
South Korean brands’ market share declined by 6.8% to 57.2%, while imported EVs increased their share to 42.8%. This growth in imports continued a rising trend from 29.2% in 2023 to 36% in 2024.
KAMA noted that the success of Chinese brands like BYD contributed significantly to the expanding imported EV market. However, it emphasized the need for preferential subsidy policies for domestically produced EV models from manufacturers such as Hyundai, Kia, and Renault Korea to accelerate Korea’s electrification transition centered on domestic automakers.

2. Kia Motors Lowers Barriers to Electric Vehicle Adoption with Enhanced Customer Support

- Comprehensive initiatives to ease burdens of EV usage
- Strengthened financial incentives, expanded maintenance workforce, and increased benefits for repeat buyers
Kia Motors is intensifying its support for customers to drive the expansion of South Korea’s EV market by reducing overall barriers throughout the EV ownership lifecycle. The initiative aims to boost accessibility by alleviating concerns at every stage—from purchase to use and eventual replacement.
On the 22nd, Kia announced plans to enhance tangible benefits across the entire cycle for both prospective and existing EV customers.
Key financial offerings have been significantly reinforced. Kia now offers ultra-low interest installment plans close to 0% and residual value-guaranteed deferred payment options for the EV3 and EV4 models. These programs reduce upfront and monthly payment burdens, enabling some models to be accessible with monthly payments in the high 100,000 won range.
Kia has also lowered the price entry threshold for the EV5 Standard model, which opened for orders on the same day, and adjusted prices of the EV5 Long Range and EV6 models downward by several million won each. With applicable tax benefits and subsidies, certain models’ effective purchase prices are expected to fall into the mid-30 million won range.
To lessen concerns during ownership, Kia plans to expand its specialized EV maintenance personnel and increase the nationwide coverage of service centers capable of performing partial repairs on high-voltage batteries.
In response to the used EV market, Kia is advancing its existing ‘Used EV Quality Grading System’ and substantially boosting benefits for customers who repurchase EVs. These efforts aim to reduce residual value anxiety and lower the barriers to EV replacement, fostering a virtuous cycle in the market.
A Kia official stated, “We are enhancing customer benefits throughout the entire EV ownership journey to encourage repeat adoption. We remain committed to actively promoting the widespread adoption of electric vehicles in South Korea.”

3. Samsung Display Strengthens Automotive Display Business by Supplying Three OLED Panels to China’s Electric Vehicle Brand

Samsung Display announced on the 21st that it will supply three types of OLED (organic light-emitting diode) panels for SUV (sport utility vehicle) vehicles of ‘Zeekr,’ a leading Chinese electric vehicle brand.
Zeekr is a premium EV brand under China’s Geely Automobile. Since the second half of last year, Samsung Display has been supplying three OLED panels for Zeekr’s large SUV, the ‘9X’: a 16-inch dashboard display (Center Information Display, CID), a 16-inch passenger-side display (Public Information Display, PID), and a 17-inch rear-seat entertainment display (Rear Seat Entertainment, RSE). The CID and PID, which span from the driver’s side to the passenger side, feature thin bezels, creating the effect of a single, seamless display.
The 17-inch rear-seat entertainment display (RSE) is the world’s first co-developed product by Samsung Display and Zeekr, mounted on the ceiling of the vehicle. This display can move forward and backward up to 88cm. Samsung Display highlighted that this innovation transforms the SUV’s interior into a premium cinema experience.
Yongsuk Choi, Executive of Automotive Sales at Samsung Display, stated, “We will continue to launch high-performance products that offer differentiated value, strengthening partnerships with global automakers and leading the growth of the automotive OLED market.”


Ⅴ. BIO INDUSTRY TRENDS

1. Samsung Biologics Surpasses Operating Profit of KRW 2 Trillion, First in Korea’s Bio-Pharma Industry

- Annual sales surpass KRW 4.5 trillion with full operation of Plant 1 to 3 and ramp-up of 4th plant
- Samsung Biologics records KRW 2 trillion operating profit for the first time in the Industry, in only 2 years since it recorded KRW 1 trillion
- Q4 sales soar 35% to KRW 1.29 trillion
- This year’s sales expected to grow 15–20%, strengthening pure CDMO model
Samsung Biologics reported achieving an operating profit exceeding 2 trillion won for the first time in Korea’s bio･pharmaceutical sector last year, alongside annual sales surpassing 4.5 trillion won and exhibiting over 30% year-on-year growth.
In an official disclosure on the 21st, Samsung Biologics recorded that annual sales reached 4.557 trillion won, with operating profit totaling 2.069 trillion won for the previous year.
This strong performance resulted from the ramp-up of its fourth plant, steady full-scale operations at plants one through three, and favorable exchange rate effects. Compared to the prior year, sales increased by 1.06 trillion won (30%), and operating profit expanded by 747.8 billion won (57%).
The company also achieved the upper end of its earlier annual sales forecast of 25–30%, demonstrating consistent growth momentum and operational excellence.
Notably, this milestone came only two years after surpassing the 1 trillion won operating profit mark in 2023, reaffirming Samsung Biologics’ expanding profitability trajectory.
Alongside its robust financial results, Samsung Biologics has continued to strengthen its business foundations through strategic investments, including the acquisition of the Rockville facility in the United States, securing a site for its third biocampus, launching ‘Samsung Organoid,’ and completing the fifth plant.
In the fourth quarter alone, the company posted sales of 1.2857 trillion won, a 35% increase year-on-year, while operating profit rose by 213.6 billion won to 528.3 billion won, supported by increased production capacity thanks to the full operation of all four plants.
Looking ahead, Samsung Biologics anticipates continued solid growth driven by its pure CDMO (Contract Development and Manufacturing Organization) business model, forecasting a 15–20% increase in sales for 2026 compared to the previous year.
This outlook does not yet include anticipated contributions from the Rockville plant acquisition, with updated projections to be provided once the acquisition is finalized.
Financially, the company reported assets of 11.0607 trillion won, equity capital of 7.4511 trillion won, and liabilities of 3.6096 trillion won. It maintains a stable financial structure with a debt ratio of 48.4% and a borrowing ratio of 12.3%.
Customer-centric management has driven strong order growth, with annual new orders reaching 6 trillion won last year. Since its founding, the company has secured 107 contracts in contract manufacturing (CMO) and 164 in contract development (CDO), totaling cumulative orders valued at USD 21.2 billion (approximately 31.147 trillion won).
To support future growth, the company has clarified its pure CDMO framework and begun full-scale operations at its new 180,000-liter capacity fifth plant. Including the Rockville facility, total global production capacity is expected to expand to 845,000 liters.
In terms of portfolio enhancement, Samsung Biologics secured land for its third biocampus in Songdo, Incheon, and finalized investment plans totaling approximately 7 trillion won through 2034. Additionally, its launch of Samsung Organoid marks a strategic expansion beyond CDMO into contract research organization (CRO) services.
The U.S. Rockville facility acquisition establishes Samsung Biologics’ first manufacturing base in the United States, equipped to support diverse antibody drug production needs, from clinical to commercial stages. Furthermore, the opening of a sales office in Tokyo enhances connectivity with clients in Japan and other Asian markets.
Samsung Biologics also leads sustainability efforts as the chair of the supply chain sector within the UK Royal-led Sustainable Markets Initiative (SMI) Health Systems Task Force. It has achieved top 10% ranking in the corporate sustainability assessment by S&P Global and demonstrated outstanding performance in prominent ESG evaluations, including EcoVadis and the Carbon Disclosure Project (CDP).

2. SK Bioscience Accelerates Development of Next-Generation Ebola Vaccine

- With CEPI and MSD funding
SK Bioscience announced on the 22nd that it is accelerating the development of a next-generation Ebola vaccine supported by funding from the Coalition for Epidemic Preparedness Innovations (CEPI).
The move follows a funding agreement signed between MSD and CEPI aimed at developing a vaccine for the Zaire Ebolavirus. As a key development partner, SK Bioscience will receive financial support for critical projects under this collaboration. The Zaire Ebolavirus is a high-risk pathogen with a survival rate of only about 50% upon infection.
Under the agreement, CEPI will provide MSD with a total of USD 30 million. MSD will allocate these funds to support essential activities, including research and development, manufacturing process enhancements, and clinical trial vaccine production entrusted to SK Bioscience and the Hilleman Laboratories.
The Hilleman Laboratories leads the clinical development of the improved Ebola vaccine, while SK Bioscience and IDT Biologika are responsible for the enhanced vaccine manufacturing process and the related finished product development.

3. Ministry of Health and Welfare to Increase Investment in Advanced Regenerative Bio R&D

The Ministry of Health and Welfare announced it is preparing the “Second Basic Plan for Advanced Regenerative Medicine and Advanced Bio Pharmaceuticals” and has engaged with industry leaders in the advanced regenerative bio sector to gather insights.
During a roundtable held in Jung-gu, Seoul, discussions focused on the challenges faced by domestic advanced technologies, many of which have failed to reach commercialization and instead have been transferred overseas. The meeting also addressed the limited inflow of private investment into the advanced regenerative bio field.
Participants exchanged views on why, contrary to global trends, domestic advanced regenerative bio products have concentrated more on cell therapy rather than gene therapy.
Lee Hyung-hoon, the Vice Minister of Health and Welfare, emphasized, “We will continue to expand R&D investment and innovate regulatory frameworks to enable the advanced regenerative bio industry to become a global game-changer. We are committed to strengthening the entire ecosystem infrastructure, from clinical research to manufacturing and production.”
The ministry also held earlier consultations with research institutions and patient groups as part of the preparation process for the second basic plan. 　

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Korean Industrial Insight No.23 of AI, Semiconductors, Batteries, Electric vehicles, and Bio in chinese