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Nvidia to Supply Over 260,000 Blackwell AI Chips to South Korea

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Nvidia, the U.S. semiconductor leader, announced it will deliver more than 260,000 of its latest Blackwell AI chips to South Korea’s government and major conglomerates, including Samsung Electronics, SK Group, Hyundai Motor Group, and Naver. The move solidifies South Korea’s position as an emerging artificial intelligence powerhouse in Asia.

The agreement follows a meeting between Nvidia CEO Jensen Huang, South Korean President Lee Jae Myung, and leading business figures on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju. While the deal’s value and delivery schedule were not disclosed, Huang highlighted that just as Korea has led in producing ships, cars, and semiconductors, it can now “export intelligence” to the world through AI.

South Korea’s government plans to use over 50,000 of the chips to enhance its AI infrastructure, while Samsung, SK Group, and Hyundai will each deploy up to 50,000 chips in smart factories and autonomous systems. Internet giant Naver will purchase 60,000 chips to boost its computing power for projects like the National AI Computing Center.

Amid ongoing U.S.-China trade tensions that have restricted Nvidia’s access to the Chinese AI chip market, the company is expanding its footprint in alternative markets such as South Korea. The partnership reinforces Nvidia’s role in driving global AI advancement, particularly in industries such as manufacturing, robotics, and autonomous driving.

South Korea Fines SK Telecom Over Massive Data Breach Affecting Millions

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South Korean authorities on Friday penalised SK Telecom, the country’s largest mobile operator, for its failure to prevent a massive data leak involving nearly 27 million pieces of user data, blaming the company for negligence and failure to meet regulatory standards.

Government Findings and Penalties

The Ministry of Science and ICT found that SK Telecom did not adequately protect USIM (universal subscriber identity module) data and violated cybersecurity regulations. The ministry’s investigation followed SK Telecom’s disclosure in April that it had been the target of a malware attack, leading to the breach.

As a result, SK Telecom faces:

  • A fine of up to 30 million won (~$22,000)

  • A requirement to implement quarterly security audits

  • Mandates for the CEO to directly oversee data governance

  • Increased investment and staffing in cybersecurity

The ministry called the situation a “wake-up call” for the nation’s broader digital infrastructure and urged stronger protections across the telecom sector.

Company Response and Compensation Measures

Following the announcement, SK Telecom said it would invest 700 billion won (~$513 million) over the next five years to bolster data protection. The company also offered:

  • A 50% discount on August subscription fees for its 24 million customers

  • Free USIM replacements to all affected users at 2,600+ retail stores

  • A public apology from CEO Ryu Young-sang, who said the company takes full responsibility for the incident

To reflect the financial impact, SK Telecom has cut its 2025 revenue forecast by 800 billion won, citing approximately 500 billion won in costs linked to the customer compensation package.

Broader Fallout and Public Concern

The breach has caused widespread alarm among SK Telecom’s 23 million active users, many of whom fear the potential theft of personal and financial information. As of late June, around 9.39 million users had replaced their USIM cards in response.

SK Group Chairman Chey Tae-won also apologised last month, vowing to take responsibility and restore public trust.

South Korea’s handling of the incident is likely to influence future regulatory scrutiny and standards in the country’s telecom and tech sectors, as data privacy becomes an increasingly critical issue in both corporate accountability and public confidence.

Korea’s SK Group and Amazon to Invest $5 Billion in Nation’s Largest AI Data Centre

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South Korea’s SK Group announced a $5.11 billion investment plan, including $4 billion from Amazon Web Services (AWS), to build the country’s largest data centre in Ulsan, the Science Ministry confirmed Friday. Construction will begin in September, with full operations expected by 2029, featuring a capacity of 100 megawatts.

SK Group Chairman Chey Tae-won expressed ambitions to expand the facility to one gigawatt eventually, aiming to position it as a global hub to meet domestic AI demands. President Lee Jae Myung, present at the announcement alongside tech industry leaders, emphasized AI’s critical role in South Korea’s growth and praised the project for spreading high-tech industry development beyond the metropolitan areas into provincial regions.

Following the announcement, South Korean AI-related stocks surged, with SK Hynix rising over 3%, Kakao jumping 11%, and LG CNS gaining 9%, helping the KOSPI index surpass 3,000 points for the first time in over three years.

The investment confirms earlier media reports this month about SK Group and AWS’s plans to build a major data centre in South Korea.