When Nvidia CEO Jensen Huang visited South Korea in June and shared soju and grilled pork belly with the heads of the country's technology giants, the high-profile gathering symbolized their deepening ties in artificial intelligence (AI), spanning semiconductors, robotics and autonomous driving.
Huang has met Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won and Hyundai Motor Group Executive Chair Euisun Chung on several occasions this year, forging partnerships across critical cutting-edge sectors.
In July, Huang also met President Lee Jae Myung on the sidelines of the San Francisco AI Summit, along with the three conglomerate chiefs and other industry leaders, to discuss ways to deepen AI cooperation.
But a scandal involving Huang, a central figure in the global AI boom, and a woman suspected of ties with Chinese intelligence has raised questions about potential regulatory scrutiny, uncertainty over Nvidia's leadership and possible repercussions for South Korea's AI supply chain.
The controversy has coincided with the cancellation of at least one high-profile engagement in Seoul.
Huang's daughter and Nvidia executive Madison Huang abruptly canceled her planned attendance at Nvidia AI Day on Monday, citing family reasons. She had been scheduled to meet Korean technology executives and government officials.
Asked whether the U.S. congressional investigation into Huang could affect the delivery of 260,000 graphic processing units (GPUs) pledged to South Korea or partnerships with Korean chipmakers, Nvidia officials declined to comment.
So far, there is no indication that the controversy has disrupted Nvidia's chip supplies or major AI projects in South Korea.
Ryu Je-myung, South Korea's second vice minister of Science and ICT, said Monday that Nvidia's GPU shipments to South Korea were expected to proceed as scheduled.
"We will have to wait and see how the controversy affects Nvidia, but we expect the contracted shipments to proceed without disruption," Ryu said during a parliamentary budget committee session.
The uncertainty comes at a time when Nvidia is expanding its presence in South Korea. The U.S. chipmaker has emerged as a key partner in Seoul's push to strengthen AI capabilities and build advanced computing infrastructure.
For Samsung Electronics Co. and SK hynix Inc., major suppliers of high bandwidth memory (HBM) chips used in Nvidia's AI accelerators, one potential concern is whether the controversy could prompt heightened U.S. regulatory scrutiny, particularly over semiconductor supply chains linked to China.
Although existing supply agreements appear unaffected, any regulatory changes or disruptions to Nvidia's product road map could complicate the Korean chipmakers' production and investment plans.
The potential implications extend beyond semiconductors.
At Nvidia AI Day, mobile carrier SK Telecom Co. and AI chip startup Rebellions announced plans to integrate Nvidia's GPUs with Rebellions' neural processing units (NPUs) in SK Telecom's AI data centers.
Ride-hailing service Kakao Mobility also unveiled plans to collaborate with Nvidia on Level 4 autonomous driving technology, initially focusing on Kia Corp.'s purpose-built vehicles.
Last week, Nvidia completed a US$1 billion investment in Naver Corp., acquiring a 4.13 percent stake in the South Korean portal operator to speed up a joint AI venture announced in June.
These deals highlight Nvidia's growing influence across South Korea's AI ecosystem, from telecommunications and mobility to software.
But the deepening ties also expose potential risks associated with South Korea's growing dependence on Nvidia for advanced computing technology, AI chip supplies and strategic tie-ups.
Industry observers say the potential fallout from the U.S. investigation will depend on whether it leads to regulatory action, leadership changes at Nvidia or shifts in its business strategy.
Despite the uncertainty, Seoul officials have stressed the importance of maintaining ties with Nvidia, viewing the partnership as a way to help domestic companies expand into global markets and advance the country's AI ambitions.
"The competitiveness of the AI industry can be further enhanced when diverse capabilities are interconnected and integrated, beyond advances in individual technologies," Lee Do-kyu, a senior official at the Ministry of Science and ICT, said during the Nvidia event.
"We hope South Korean companies will identify opportunities for technological and business cooperation with Nvidia and ultimately expand into global markets together."
