▲ AI PRISM* Personalized Economic Briefing
* Editor's note: AI PRISM (Personalized Report & Insight Summarizing Media) is an artificial intelligence-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and delivers six news items tailored to each reader type.
[Key Issue Briefing]
■ Robot export barrier: The United States has blocked new model certification for foreign-made humanoids, quadruped robots and autonomous mobile robots, shaking up U.S. market access for some 20 Korean robot companies. Rainbow Robotics (277810.KQ) has become the first Korean firm to file for a conditional waiver, and many others plan to apply by year-end. Because the regulation is aimed primarily at China, some expect Korean firms to benefit indirectly, but the burden is mounting for startups that lack the resources to meet U.S. local production requirements.
■ AI chip megadeal: Amazon is in talks to acquire Decart, an AI startup founded in 2023, for $7 billion (about 9.4 trillion won). As surging AI demand has made Nvidia GPUs harder to secure, compatibility technology that allows models to run across different chips has grown in importance. Amazon, which has been pushing its own Trainium3 chip, appears to be strengthening its chip strategy by considering the purchase of a compatibility software company.
■ Beauty retail realignment: As it has become harder to get shelf space at Olive Young, emerging channels such as Musinsa Beauty, Daiso and Off Beauty have become new stages for indie brands. At the Musinsa Beauty Hongdae store, which opened last month, indie labels account for 70% of the roughly 600 brands carried. Meanwhile, Olive Young is expanding overseas, installing K-beauty curation displays at 48 Sephora stores across four Asian countries and territories.
[News of Interest to Startup Founders]
1. U.S. Bars Robots; Rainbow Robotics Files Korea's First Waiver Request
- Key summary: Rainbow Robotics, a subsidiary of Samsung Electronics (005930.KS), filed late last month for a conditional waiver from U.S. Federal Communications Commission rules, the first such application by a Korean company. On July 28, the FCC added foreign-made advanced mobile robots to its covered list of equipment deemed a national security risk, blocking new model certification. The company moved after exports of its mobile humanoid robot RB-Y1 were cut off. Existing models that already hold certification can still be sold, and fixed robots such as industrial robotic arms are excluded. To avoid the rules, a company must produce in the United States and have U.S.-made components account for more than 65% of total costs. According to a tally by the office of Rep. Seo Ji-young of the People Power Party, about 20 Korean companies plan to export to the United States by 2027. A robot industry survey showed Korean robot firms exported 493.9 billion won worth of goods to the United States in 2024, up 83% from 2021.
2. [Reporter's Note] A Welcome New Stage for Indie Beauty
- Key summary: Small and mid-sized beauty brands complain about the high costs and vendor-mediated structure involved in getting into Olive Young. One indie brand official said, "Collaborating with a well-known YouTuber to get into Olive Young can cost up to 80 million won." At the Musinsa Beauty Hongdae store, which opened last month, indie labels filled 70% of the roughly 600 brands carried. Featuring a pharmacy tie-in and fashion-beauty collaborations, the store topped 250 million won in cumulative sales within three days. Daiso expanded its cosmetics lineup to about 2,200 items in August from about 1,420 at the end of last year. Of the $11.4 billion in cosmetics exports last year, small and mid-sized firms accounted for $8.3 billion, or about 73%, making expanded sales channels for emerging brands a key task for the K-beauty ecosystem.
3. Amazon Pursues $7 Billion Deal for AI Chip Compatibility Firm Decart
- Key summary: The Wall Street Journal reported on the 11th, citing sources, that Amazon is in talks to acquire AI startup Decart for $7 billion (about 9.4 trillion won). Founded in 2023, Decart was valued at $4 billion as of May this year and is developing world models called Lucy and Oasis that generate and simulate three-dimensional environments. Decart also provides compatibility software that allows AI models built for one chip to run on others, technology that has grown more important as surging AI demand has made Nvidia GPUs harder to obtain. Amazon has developed its own custom AI chip, Trainium3, to compete with Nvidia, and is reported to have provided it to Decart early in 2025.
[Reference News for Startup Founders]
4. DTS Sets IPO Price at Top of Range, Eyeing Second Dual-Listing Exemption
- Key summary: DTS, an industrial plant cooling solutions company pursuing a KOSDAQ listing, set its offering price at 18,500 won, the top of its indicative range. In institutional bookbuilding held from the 1st to the 8th of this month, 2,381 domestic and foreign institutions took part for a simple subscription ratio of 983.98 to 1, and 99.9% of the 1.644913 billion shares bid for were offered at 18,500 won or more. Based on the expected number of listed shares, market capitalization is projected at 275.3 billion won. The company plans to channel about 41.2 billion won in proceeds into technology development for new businesses such as AI data center cooling, and into global marketing. DTS, a subsidiary of DASAN Networks (039560.KQ), will hold its retail subscription on the 13th and 14th and, barring complications, will list on the KOSDAQ on Oct. 23. It is expected to become the second company to clear dual-listing regulations, after Duksan NepCoreS (266690.KQ), which listed on Sept. 30.
5. [Exclusive] SK Telecom to Sell Stake in Zeta, Korea's No. 1 AI Chatbot
- Key summary: SK Telecom (017670.KS) is contacting potential investors to dispose of its entire 7.3% stake in Scatter Lab, operator of the AI chatbot Zeta. Talks are under way with venture capital firm JB Investment and existing shareholder Atinum Investment, among others. SK Telecom acquired 107,578 shares at about 139,434 won per share in April 2023, and the sale price under discussion is about 240,000 won per share, meaning a full disposal could yield gains of more than 10 billion won. Industry watchers say the move reflects a desire to shed the burden of controversy over Zeta's sexual content and material harmful to minors, and to concentrate resources on core businesses such as AI data centers.
6. Olive Young Teams With Sephora, Entering 48 Asian Stores
- Key summary: CJ Olive Young said on the 12th that it had completed the rollout of Olive Young K-Beauty Edit, a K-beauty curation display, across Sephora's online and offline channels in four Asian countries and territories: Malaysia, Singapore, Thailand and Hong Kong. The displays are in 48 stores in total — 18 in Malaysia, 13 in Thailand, nine in Singapore and eight in Hong Kong — with each store carrying 12 to 17 brands and up to 120 products. Reflecting local climates and consumer tastes, the lineup focuses on skincare such as cleansers, serums and creams, and brands including Dr. Althea, Manyo Factory, Bio Heal BOH and Beplain have drawn early local interest. Olive Young is holding a pop-up event at ION Orchard in Singapore from the 8th to the 14th of this month, and plans to expand distribution next year to Sephora stores in Canada, Australia, the United Kingdom and the Middle East.
