SK hynix Plans US ADR Listing, Bets 40 Trillion Won on AI Facilities

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "AI-based customized news recommendation and summary service" developed with support from the Korea Press Foundation. It selects and provides six customized news items tailored to each reader type.

1. US 'AI Isolationism' Spares No Ally...Without Independent Models, Risk of Becoming a Digital Colony

- Key Summary: As the United States blocked even its ally Japan from accessing Anthropic's cutting-edge security AI 'Mythos,' AI export controls have been elevated to a means of strategic asset management that transcends diplomatic relations. While SoftBank Group Chairman Masayoshi Son warned it is "the worst crisis since the arrival of the black ships," the UK National Cyber Security Centre (NCSC) estimated that cyber incidents involving critical infrastructure exceeded 200 cases over the year through May this year, of which about 75% were linked to state actors such as Russia, China and Iran. Korea is also expanding cybersecurity cooperation with OpenAI, Anthropic and others, but the right to use cutting-edge AI can be restricted at any time according to US security judgments, highlighting the need to secure independent AI capabilities. In response, Naver has established a dedicated organization for defense AI transformation (AX) and is developing a defense-specialized AI model based on HyperCLOVA X, while the government is also pushing an independent AI foundation model project and the construction of a defense AI platform.

2. SK hynix Secures Up to $20 Billion Amid High Exchange Rate...Bets 40 Trillion Won on AI Facility Investment This Year

- Key Summary: SK hynix is expected to list American depositary receipts (ADRs) on the US stock market and raise up to $20 billion (about 30 trillion won), as early as the end of next month after a review by the US Securities and Exchange Commission (SEC). Leveraging a high exchange rate regime in which the won-dollar rate exceeds the 1,530 won level, the funds raised will be concentrated on capital expenditure approaching 40 trillion won this year, including next-generation DRAM process conversion, expansion of high-bandwidth memory (HBM), and the introduction of extreme ultraviolet (EUV) equipment. The first fab at the Yongin semiconductor cluster will begin phase-two framework construction in August, targeting partial operation early next year, and 19 trillion won will be invested in the Package & Test (P&T) 7 plant in Cheongju, North Chungcheong Province. In addition, overseas base investments for expanding the global AI ecosystem are proceeding simultaneously, including $3.87 billion (about 6 trillion won) for an advanced packaging plant in Indiana and $10 billion (about 15 trillion won) allocated as initial investment funds for establishing an AI company entity in the US.

3. OpenAI Signs World's Largest ChatGPT Enterprise Supply Contract with Samsung Electronics

- Key Summary: OpenAI signed a contract to supply ChatGPT Enterprise and AI coding tool Codex to Samsung Electronics, the largest AI contract OpenAI has signed with any company worldwide. All of Samsung Electronics' domestic employees and global employees in the Device eXperience (DX) division will be able to perform knowledge-based tasks such as information analysis, document creation and data interpretation through ChatGPT, and use Codex to turn ideas into actual software and automation processes. ChatGPT Enterprise provides enterprise-customized features such as data protection, access permission management and security controls, and the number of Codex's weekly active users in Korea has increased nearly 800% since February this year. Meanwhile, OpenAI and Samsung Electronics are continuing their cooperative relationship regarding the supply of advanced memory semiconductors needed to build next-generation AI infrastructure.

4. OpenAI Enters Public Sector Including KOTEC...Google Also Joins B2B Order Competition

- Key Summary: Anthropic is pursuing Seoul in-region (data processing within domestic servers) support, taking aim at regulated industries such as finance and healthcare. As electronic financial supervision regulations and electronic medical record management standards restrict the physical location of cloud servers used by financial firms and medical institutions to within the country, Seoul in-region support is read as a strategy to leave no gap across the Korean B2B (business-to-business) market by clearing the most demanding regulatory barriers. OpenAI, which entered Korea first, has signed partner contracts with major system integration (SI) firms such as Samsung SDS, LG (003550.KS) CNS, and SK AX, and supplies enterprise ChatGPT to LG Electronics (066570.KS), GS E&C (006360.KS), Krafton (259960.KS) and Hana Tour (039130.KS), while expanding into the public sector by signing memorandums of understanding (MOU) with Korea Water Resources Corporation and the Korea Technology Finance Corporation. Google has joined the B2B order competition, securing Samsung Electronics, KakaoBank (323410.KS) and CJ (001040.KS) Olive Young as clients with Gemini Enterprise.

5. SK Energy's AX Accelerates...AI Judges 'Crude Oil Profitability and Equipment Anomalies'

- Key Summary: SK Energy is participating as a leading flagship factory in the 'Ulsan AX (AI transformation) demonstration industrial complex construction project' of the Ministry of Trade, Industry and Energy and the Korea Industrial Complex Corporation, pursuing AI-based process innovation at Ulsan Complex (Ulsan CLX), Korea's first oil refinery. Ulsan CLX spans 2.5 million pyeong, about three times the area of Yeouido, where production bases of SK Energy, SK Enmove, SK Geocentric and others are concentrated, and predicting equipment anomalies caused by external environmental exposure and securing aging skilled workers were key challenges. SK Energy provides more than 100 billion items of process, equipment and safety management data secured during its digital transformation (DX) process to support the development of petrochemical-specialized vertical AI solutions, including △automation of profitability judgment by crude oil type △advance detection of equipment anomalies and response instructions △video analysis-based worker safety monitoring. Verification of actual process application is scheduled during next year when solution development is completed, with a structure to later spread across the entire Ulsan and Mipo national industrial complexes.

6. Triple-Burdened KEPCO Issues Even '2-Year-4-Month' Bonds Amid High Interest Rates

- Key Summary: Korea Electric Power Corporation (KEPCO) has launched an unusual fundraising drive against surging interest rates, issuing non-standard corporate bonds with maturities of 2 years and 4 months and 2 years and 10 months, worth 500 billion won and 700 billion won respectively. The yield on KEPCO's 3-year bonds soared from 3.169% at the beginning of this year to 4.247% early this month, jumping 1.1 percentage points in just over six months, marking the highest level in 2 years and 7 months since November 2023. KEPCO has frozen electricity rates for 17 consecutive quarters, with liquefied natural gas (LNG) stemming from the war in Iran.