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Newsletter N°83 - December 2025
📉 Economic Outlook: China’s Slowdown and Korea’s Delicate Balancing Act
Some key indicators suggest that China’s economy may have been facing a slowdown in recent months. Manufacturing activity remained in contraction in November, marking a record streak of decline, and non-manufacturing activity also contracted.
The trade environment with China’s key economic partners appears extremely fragile, with the details of the temporary truce in the tariff dispute with the U.S. still under negotiation, and a severe diplomatic crisis with Japan over Taiwan threatening to spill over into the economic sphere (if it has not already).
Even if growth in the final quarter of the year is likely to become the weakest since 2022 and the final phase of the COVID lockdowns, the overall 5% growth target for 2025 still seems within reach, and deep reforms are therefore unlikely to be announced.
As the won is tumbling to historic low levels, widening the gap between domestic-oriented firms and export-driven champions, the Bank of Korea decided to maintain its policy rate at 2.5%, in a bid to curb excessive borrowing. This comes as residential property prices in Seoul are literally boiling and currently rising at one of the fastest paces in the world.
Caught between China and Japan, South Korea is trying to carefully navigate the turmoil to avoid being hit by the crossfire and is for now avoiding taking sides. The country recently went through a period of heightened diplomatic tensions with China following the deployment of U.S. THAAD missiles on its soil, resulting in direct and relatively severe effects on trade with long-lasting economic repercussions, most notably Chinese consumer boycotts of Korean stores and a sharp drop in Korean car sales in China.
🏗️ Smart Construction: Kajima's AI-Powered Bridge Inspection and Lifecycle Management System
BMStar AI is a web-based AI system developed by Kajima in collaboration with Aomori Prefecture to support damage assessment and condition evaluation of bridges using simple photos taken on-site with a smartphone or tablet. The service is offered as a cloud platform connected to the existing BMStar bridge management system, with limited free trials available for local authorities that wish to test the tool before full deployment.ng-term repair strategies.
Open the “BMStar AI” application on your smartphone or tablet, then take a photo of the damaged area
What BMStar AI Is?
BMStarAI is the AI extension of the BMStar lifecycle management system for bridges, designed to cover the full range of maintenance tasks: inspection, structural health evaluation, degradation forecasting, mid-term budget simulation, and planning of life-extension works. The AI model is trained on years of inspection data collected by experienced inspectors, enabling it to reproduce expert-level diagnoses and reduce variability in assessments between technicians.
How It Works in the Field?
During a periodic inspection, the technician opens BMStar AI on a smartphone or tablet, photographs the damaged areas of the bridge, and the system instantly analyzes the image and displays the diagnostic results.
On concrete bridges, the AI detects cracks, delamination, exposed reinforcement, water leakage traces, and lime efflorescence. It also classifies the severity of each defect to support the overall condition evaluation of the structure.
The damage assessment results are then displayed instantly
Damage Types and Technical Scope:
The core technology is based on still-image analysis: the AI segments damaged areas on superstructure elements (main girders, crossbeams, deck) and substructure elements (piers, abutments, foundations) to measure the affected surface. The targeted categories include at minimum delamination, exposed reinforcement, and water leakage areas associated with calcium deposits—critical indicators for predicting corrosion and long-term deterioration.
Integration Into Bridge Management:
BMStar_AI connects seamlessly to the BMStar system, which centralizes inspection histories, diagnostic results, degradation forecasts, and lifecycle cost calculations for each bridge. The AI-generated results therefore directly support work prioritization decisions, multi-year budget planning, and the preparation of long-term repair strategies.
A field demonstration in China's Kubuqi Desert has showcased how autonomous drones are dramatically improving the efficiency and safety of operating massive renewable energy projects. At the world's first 10-gigawatt renewable energy base, traditional inspection methods are no longer viable for the vast solar arrays and wind turbines.
The efficiency gains are substantial. For solar inspections, manual methods allowed four people to check about 1,000 panels daily. Deploying DJI's autonomous drones, the same operation can now inspect approximately 30,000 panels per day—a 26x increase in efficiency. A full-site inspection that would be impractical manually is completed in just 36 days.
This is achieved using drones equipped with dual visible-light and thermal imaging cameras. The thermal capability is critical, automatically identifying overheating panels indicative of electrical faults with over 95% accuracy. For wind power, drones complete a turbine blade inspection in 15 minutes, a task that traditionally took 1-2 days using risky gondola-based methods.
The system operates autonomously via the DJI Dock, allowing remote task assignment. Drones launch automatically, capture data, and generate reports. This technology is already deployed at over 1,000 Chinese renewable plants.
Beyond maintenance, drones accelerated the construction phase itself, completing terrain mapping for the massive site nearly nine times faster than conventional surveying. By providing a safe, efficient, and data-rich inspection solution, drone technology is proving essential for managing the scale and complexity of modern renewable energy infrastructure.
⚡ Energy: Smarter Inspections for Renewable Energy Farms
🏠 Smart Homes: First Deployment of the Raemian AI Parking System at Raemian One Perla
Samsung C&T has implemented its first Raemian AI Parking System at Raemian One Perla (Seoul, Seocho District), a 1,097-unit complex with parking spanning B1 to B4 (1,902 general spaces and 101 EV charging bays). With a capacity of 1.8 vehicles per household, the AI system aims to maximize efficiency and enhance everyday convenience.
The solution integrates three functional layers:
1. AI Parking Service – Analyzes residents’ historical parking behavior to recommend preferred spots or spaces closest to their building. Visitor vehicles receive shortest-path routing and suggestions based on pre-registered visit data. Parking locations can be checked on wall pads and via the HomeNik platform. Departure mode automatically calls the elevator to the correct floor and activates blinking lights above the parked vehicle for quick identification.
2. AI EV Charging Service – Guides vehicles to the most suitable charging bay upon entry. License-plate recognition handles resident authentication, and charging fees are added to regular maintenance bills. Upon completion, the system notifies the unit to encourage timely vehicle movement. Fire-risk management is strengthened by flame-detection-sensor CCTV integrated into the charging area.
3. AI Parking Management Service – Detects and reports potential issues with long-term parked vehicles such as battery discharge or low tire pressure. The system also monitors EV and accessible parking zones, enabling rapid action against illegal or double-line parking.
Samsung C&T sees the deployment as a step toward delivering differentiated residential value, enhancing both convenience and safety in everyday mobility.
🥽 Exended Reality: Samsung Adopts Galaxy XR for Immersive AI-XR Employee Training
Samsung has begun using its new Galaxy XR headset to deliver AI·XR-powered immersive training for employees, combining virtual historical experiences, meditation environments, and AI-driven role-play as part of its broader push to scale XR across education and industrial use cases.
🎬Media: Naver Webtoon and Warner Bros. Animation Announce Global Co-Production of Ten Webtoon-Based Series
Webtoon Entertainment, the U.S. headquarters of Naver Webtoon, has unveiled a major animation initiative in partnership with Warner Bros. Animation, the production and distribution studio under the Warner Bros. Discovery group. The companies will co-produce ten animation titles based on webtoons with the objective of global distribution, significantly expanding Webtoon Entertainment’s animation pipeline.
Eligible works are drawn from Naver Webtoon’s Korean- and English-language platforms. Four titles have been confirmed for the first wave: Korean originals “The Stellar Swordmaster” and “Hardcore Leveling Warrior”, and English-language originals “Down to Earth” and “Elf & Warrior.” Additional titles will be announced later.
From the left, clock wise : “The Stellar Swordmaster”, “Elf & Warrior”, “Down to Earth” and “Hardcore Leveling Warrior”. The project is supported by Webtoon Productions, which oversees Webtoon Entertainment’s global IP business, together with Naver Webtoon’s Japan IP business team.
Yongsoo Kim, CSO and head of global webtoon business at Naver Webtoon, highlighted webtoons’ role as a leading source of original storytelling popular among Gen Z audiences. Sam Register, President of Warner Bros. Animation, Cartoon Network Studios, and Hanna-Barbera Studios Europe, expressed confidence that combining WBA’s world-class artistry with webtoons’ dynamic narratives would yield exceptional results.
The partnership follows Naver Webtoon’s growing U.S. focus, including its global content agreement with Disney earlier in the year to produce webtoon adaptations of Avengers and Star Wars.
📶Telecom: SK Telecom Slashes Executive Ranks by 30% Amid Major Restructuring
SK Telecom (SKT), South Korea's largest mobile carrier, has implemented a sweeping 30% reduction in its executive workforce as part of a major organizational overhaul triggered by the fallout from a devastating data breach earlier this year. The restructuring represents one of the most aggressive cost-cutting measures in the company's history and is part of a broader transformation across SK Group.
Key Figures and Financial Impact
The restructuring comes after SKT suffered catastrophic financial losses:
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Operating profit plunged 90.9% year-over-year in Q3 2025, falling to just ₩48.4 billion ($34.1 million) from ₩493 billion
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Net loss of ₩166.7 billion ($117.1 million), ending a 25-year streak of consecutive quarterly profits
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Revenue dropped 12.2% to ₩3.98 trillion
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Customer compensation costs exceeded ₩500 billion ($351 million), including mobile fee discounts, data bonuses, and waived termination fees
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₩1.35 trillion fine imposed by the Personal Information Protection Commission
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720,000–840,000 subscribers lost through number portability following the breach
The Hacking Incident
In April 2025, SKT disclosed a massive cyberattack that compromised USIM data for nearly 27 million subscribers—more than half of South Korea's population. Government investigators discovered 33 different malware strains across 28 servers, with the intrusion dating back approximately three years. The breach exposed sensitive data including phone numbers, IMSI numbers, authentication keys, and some personal information.
SKT's CEO at the time called it "the worst hacking case in telecom history" for the company. The carrier was forced to suspend new customer sign-ups, replace SIM cards for all 25 million users, and implement extensive compensation programs.
Organizational Changes
The November 2025 restructuring introduced significant leadership and structural changes:
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New CEO: Jung Jai-hun, a former judge and Chief Governance Officer, was appointed as SKT's new CEO—the first time a lawyer has led the company
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Dual CIC Structure: The company reorganized into two Company-in-Company divisions: MNO CIC (telecommunications) led by Han Myung-jin, and AI CIC (artificial intelligence) led jointly by Yoo Kyung-sang and Jeong Seok-geun
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AI CIC Cuts: Within the AI CIC division, approximately 40% of executives lost their positions
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11 new executives promoted, but overall executive ranks decreased by 30% due to a larger number of retirements
Jung Jae-hun, the new CEO of SK Telecom, delivers a keynote speech at the SK AI Summit 2025 held in Seoul on November 3rd
SK Group-Wide Restructuring
The SKT cuts are part of a broader SK Group reorganization:
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SUPEX Pursuit Council (SK Group's highest consultative body) is reducing staff by 40–50%, shifting execution functions to individual affiliates
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SK Innovation has already undergone significant reductions due to poor EV battery business performance
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SK Hynix is exempt from cuts due to strong semiconductor performanceExecutive appointments were accelerated by one month, with CEO-level changes announced on October 30 and lower-level appointments finalized in early December
Korean Corporate Culture: Year-End Executive Reshuffles
The SKT restructuring follows a long-standing tradition among Korean conglomerates (chaebols) of conducting annual year-end executive reshuffles between early December and early January. This practice involves organization-wide promotions, demotions, departmental transfers, and sometimes dramatic workforce reductions.
Senior leadership changes typically occur first, with team-level reassignments announced between Christmas and New Year's Day.
Employees often find themselves assigned to entirely new departments where they have little prior experience, requiring them to quickly acquire new skills. This "shuffle" is considered a normal part of Korean corporate life, designed to prevent stagnation, promote fresh perspectives, and align organizations with evolving strategic priorities.
In challenging economic years, these reshuffles can take on a more aggressive character—dubbed 칼바람 ("blade wind")—characterized by significant executive culls and organizational consolidation. The 2025 cycle has been particularly intense, with Samsung, LG, and other major groups also conducting significant leadership changes amid AI transformation efforts and economic uncertainty.