A technician conducts chip quality inspections in a factory in Yiwu, East China's Zhejiang Province, in March 2026. Photo: VCG

Expanding technology cooperation with China serves the interests of South Korean companies, as stable China-South Korea relations provide favorable conditions for stronger industrial and supply chain cooperation, industry experts said on Monday, following media reports that South Korean tech giant SK Group plans to establish an artificial intelligence (AI) research and development (R&D) center in Shanghai.

At the 38th Shanghai International Business Leaders Advisory Council meeting, held in Shanghai on Sunday, SK Group Chairman Chey Tae-won said, "SK has invested around $60 billion in China in areas including semiconductors, batteries and petrochemicals," adding that it "has grown into the largest foreign investor in China over the past 35 years," according to The Asia Business Daily.

A statement issued under Chey's name said that SK Group was planning to establish an AI R&D center in Shanghai. The center is expected to conduct research on AI data centers, physical AI and biopharmaceuticals, according to the report. 

Commenting on the rapid progress of Chinese tech upstarts, Chey said, "If you leave them alone, they'll catch up in every area. They're coming after us at a fast pace." He added, "It doesn't seem very wise to think that we can stop China's semiconductor industry," noting that "CXMT and YMTC keep advancing at a frightening pace," according to The Asia Business Daily.

Chey's remarks indicate that explosive global demand for semiconductor chips presents China and South Korea with a shared opportunity to combine their complementary strengths through deepening pragmatic, mutually beneficial cooperation, Lü Chao, an expert at the Liaoning Academy of Social Sciences, told the Global Times on Monday.

South Korea's semiconductor industry has held distinct edge thanks to its early-start advantage and consistent investments, and South Korean companies have benefited enormously by selling directly and by building plants in China to strengthen their supply chains, veteran industry analyst Ma Jihua said.

"China is South Korea's largest trading partner, so close economic and trade cooperation between the two countries is mutually beneficial. With China-South Korea relations now at a stage of stable and sound development, ample opportunities exist for high-tech cooperation, offering a strong opening for the two countries to consolidate their industrial and supply chain ties," Lü said.

According to data released by the Korea Customs Service on Monday, South Korea's exports more than doubled year-on-year during the first 10 days of October, driven by the global semiconductor upcycle. By destination, exports to China soared 167 percent to $7.59 billion, Yonhap News Agency reported.

The sharp increase in exports underscores the importance of the Chinese market and points to rising opportunities for further bilateral cooperation in the semiconductor sector.

Samsung Electronics and SK Hynix are evaluating chipmaking equipment from China's Advanced Micro-Fabrication Equipment (AMEC) for possible use at their factories in China as the South Korean companies hedge against the risk of tighter US export controls, Reuters reported in August, citing three people familiar with the matter.