South Korea Announces $34 Billion Fund to Support Strategic Industries

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South Korea has unveiled plans to establish a $34 billion policy fund aimed at providing financial support to companies operating in strategic sectors such as semiconductors and automotive manufacturing. The government’s decision is driven by escalating global competition and rising protectionist policies, particularly from the United States.

The state-run Korea Development Bank will manage the 50 trillion won fund, which will be distributed to firms in key industries over the next five years. The support will take the form of low-interest loans and investments. This initiative is part of South Korea’s broader strategy to strengthen its position in industries vital to its national economic security.

As the global landscape grows increasingly competitive, South Korea has identified 12 sectors as “national strategic technologies,” including semiconductors, future mobility, rechargeable batteries, biopharmaceuticals, aerospace, and artificial intelligence. These sectors will receive enhanced financial backing and protection to address challenges such as the fragmentation of global supply chains.

Additionally, the government’s semiconductor support package, introduced last year, will be incorporated into this new fund. In a bid to attract talent, South Korea also plans to offer “top-tier” visas and permanent residency to skilled foreign workers with experience in global firms, making it easier for them to join the country’s advanced technology sectors.

Avride Partners with Hyundai to Expand Robotaxi Fleet

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Self-driving technology startup Avride has announced a strategic partnership with Hyundai Motor Co to expand its fleet of robotaxis. Under the deal, Avride will incorporate 100 Hyundai IONIQ 5 cars into its fleet this year, with plans to grow further by 2026 as the company seeks to enhance its autonomous vehicle services and expand into new regions.

Avride, based in Texas, is joining a growing group of companies advancing autonomous vehicle technology and expanding their fleet of robotaxis. This includes Tesla, which is preparing to launch its own autonomous ride-hailing service in California and Texas, and Alphabet’s Waymo, which recently rolled out its robotaxi service on Uber’s platform in Austin.

As part of the partnership, Avride’s IONIQ 5 cars will be retrofitted with the company’s self-driving technology and used exclusively on Uber’s platform in Dallas, Texas. These vehicles will be manufactured at Hyundai’s Metaplant facility in Georgia, and the two companies also aim to explore autonomous delivery services using Avride’s technology.

Avride’s connection with Hyundai is not new, as the startup was previously part of Russian company Yandex’s self-driving division and has collaborated with Hyundai’s automotive supply unit in the past to develop systems for autonomous vehicles.

Sony and Suntory Stockpile Inventory as Japan Faces Potential U.S. Tariff Threat

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Japanese companies Sony and Suntory are taking proactive steps to safeguard against potential tariffs imposed by the U.S., building up stockpiles of products in the country. These moves come as President Donald Trump has hinted at further tariffs, specifically targeting Japan, after imposing new trade barriers on Mexico and China—key low-cost production hubs for Japanese industries such as automotive manufacturing.

The ongoing uncertainty regarding U.S. trade policies is exacerbated by Japan’s heavy reliance on exports, particularly to the United States, which has become increasingly vulnerable to tariff measures. The latest potential threat for Japan Inc. has already prompted some companies to adjust production strategies. For instance, Honda has moved some of its production to the U.S., and Japan Display, a major supplier of LCD screens to the automotive sector, is also considering shifting some of its production to the U.S.

Sony, a key player in the electronics and gaming industries, confirmed that it has been preparing for tariffs by stockpiling inventory in the U.S. A similar strategy has been employed by Suntory, a global drinks maker, which shipped tequila from its Mexican brands to the U.S. to avoid tariffs. Suntory is also looking at shifting its sales strategy by selling more American whiskey in the U.S.

Other companies, such as Alps Alpine and Murata Manufacturing, are adjusting their supply chains to avoid the impact of tariffs, with Alps considering moving production back to Japan, while Murata is diversifying its production across China, Japan, and Thailand.

The trade uncertainty has spurred over 300 Japanese companies to consider entering the U.S. market, reflecting growing concerns about tariffs and the shifting trade environment. According to a survey by Japan’s export-promotion agency, many companies are planning to set up U.S. operations to insulate themselves from escalating trade tensions.