The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Feb. 4.
S. Korea’s retail sales hit 21-year low amid economic, political crisis
South Korea’s domestic consumption faced a severe downturn in 2024, with retail sales dropping 2.2% year-on-year, the largest decline since 2003. The country’s economic struggles, compounded by high inflation, interest rates, and political instability, hindered typical year-end spending. The lodging and food services sectors saw sharp declines, with service production falling 3.1% in December. The construction sector contracted by 4.9%, the worst drop in three years. Despite growth in semiconductor exports, the consumption downturn persisted into early 2025, with total vehicle sales dropping by 11.8% on-year in January.
Samsung’s legal struggles over, but faces tough recovery ahead
Samsung faced significant setbacks during Chairman Lee Jae-yong’s prolonged legal troubles, which lasted nearly a decade since the 2016 political scandal. Lee was acquitted on Feb. 3 in the appeals trial concerning Samsung Biologics’ accounting fraud, clearing him of all charges. During this extended period of investigations and trials, rivals surged ahead with aggressive investments, while Samsung’s leadership vacuum caused the company to miss critical market opportunities. Samsung’s memory chip business was overtaken by SK Hynix, and its foundry market share gap with TSMC widened significantly. In the smartphone market, Samsung’s once-dominant lead over Apple has now dwindled to a mere 1 percentage point.
OpenAI’s Sam Altman explores AI collaborations with SK, Samsung, Kakao during Seoul visit
OpenAI CEO Sam Altman visited Seoul to meet with SK Group Chairman Chey Tae-won, Samsung Electronics executives, and Kakao CEO Jeong Shin-ah to explore AI collaborations. His third trip to South Korea included attending OpenAI’s “Builder Lab” workshop in Seoul with 100 local developers and tech firms. During private meetings, Altman discussed high-bandwidth memory (HBM) design with SK Group and explored AI integration with Samsung. Kakao also plans to unveil its AI service Kanana, which will incorporate OpenAI’s models, sparking anticipation in the local market.
During the workshop, Altman revealed plans for a healthcare-focused ChatGPT and showed interest in robotics collaborations with Korean companies. He emphasized Korea’s strategic role in the global AI ecosystem, spanning semiconductors and energy sectors.
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