LG AI Research has unveiled K-EXAONE 2.0, a large-scale artificial intelligence (AI) model with 750 billion parameters, more than tripling the size of its predecessor while adopting a commercially permissive open-source license.

The institute said on July 31 that it had released K-EXAONE 2.0 on Hugging Face as the second model developed under South Korea’s Independent AI Foundation Model Project, an initiative overseen by the Ministry of Science and ICT.

The model does not activate its entire network for every request. Instead, it employs a Mixture of Experts (MoE) architecture that selectively engages only the components needed to answer a query. The system contains 256 specialized processing modules and dynamically selects eight experts for each token when generating responses. While the model contains 750 billion parameters in total, only 37 billion parameters are activated during inference. The approach is designed to preserve the knowledge capacity of a large model while reducing computational requirements and operating costs.

K-EXAONE 2.0 supports a context window of up to 262,144 tokens and expands language coverage to 10 languages, including Korean, English, Japanese, and Chinese. LG AI Research also replaced its previous proprietary license with the Apache 2.0 license, allowing users to download, modify, and deploy the model commercially.

According to LG AI Research, the model achieved an average score of 70.1 across 24 benchmarks spanning nine evaluation categories, compared with 63.3 for the first-generation model. In the OpenAI-MRCR long-context retrieval benchmark, K-EXAONE 2.0 scored 94.4, exceeding the 93.0 achieved by Qwen 3.5 and the 92.9 recorded by DeepSeek V4 Pro Max.

Within South Korea, one of the most direct comparison points is SK Telecom’s A.X K2 model, unveiled on July 29. A.X K2 is also an MoE model, with 688 billion total parameters and 33 billion active parameters. Like K-EXAONE 2.0, it supports a maximum context length of 262,144 tokens and is released under the Apache 2.0 license.

The announcement did not include direct comparisons with leading commercial AI models such as OpenAI’s GPT series, Anthropic’s Claude, or Google’s Gemini. As a result, the published benchmark data alone does not provide a clear indication of how K-EXAONE 2.0 compares with the highest-performing proprietary global models.

Parameter count alone is also not a direct measure of real-world performance. User experience depends not only on reasoning capability but also on factors such as response speed, operating costs, integration with search and coding tools, multimodal capabilities, and service optimization.

The significance of the release lies in the fact that South Korean researchers have built a 750-billion-parameter-class model, including its training and inference infrastructure, and made it available under terms that allow enterprises to maintain control over deployment and customization.

The model’s competitive standing is expected to become clearer once results emerge from government-led evaluations conducted under standardized conditions, independent third-party benchmarks, and real-world deployment scenarios.

Samsung SDS expanded its top line in the second quarter on the back of growth in both its cloud and logistics businesses. However, operating profit remained largely flat compared with revenue growth. The company said it plans to expand its artificial intelligence (AI) infrastructure capacity to more than 800 megawatts (MW) by 2031 and broaden AI transformation projects, particularly in the financial sector, to secure new growth drivers.

Samsung SDS reported preliminary consolidated second-quarter revenue of 3.7178 trillion won and operating profit of 231.8 billion won. Revenue increased 5.9% from a year earlier, while operating profit rose 0.7%.

Although revenue grew by nearly 6%, operating profit increased by less than 1%. As a result, the operating margin is estimated to have declined by about 0.3 percentage points to approximately 6.2% from about 6.6% a year earlier. While expansion in logistics operations and investment in AI infrastructure supported revenue growth, they have yet to translate into meaningful profitability improvements.

Revenue from the information technology (IT) services business rose 5% year over year to 1.7625 trillion won. Within that segment, cloud revenue increased 17% to 779.4 billion won. Cloud services accounted for approximately 44% of total IT services revenue.

In particular, cloud revenue from external customers outside Samsung affiliates surged 75% from a year earlier, leading overall growth. The performance suggests the company's business mix, which has historically relied heavily on internal group demand, is expanding into external markets including the public sector, financial services and manufacturing.

The cloud service provider (CSP) business grew 24%, driven by rising demand for the Samsung Cloud Platform and expanded Graphics Processing Unit as a Service (GPUaaS) offerings across public and private sectors. The managed service provider (MSP) business also increased 17%, supported by AI transformation projects in the financial industry and growth in enterprise resource planning projects within the shipbuilding sector. With Samsung SDS's IT services growth increasingly concentrated in cloud operations, the profitability of its cloud business and the pace of external customer acquisition are expected to play a critical role in future earnings performance.

Revenue from the logistics business rose 6.6% year over year to 1.9553 trillion won. Growth was driven by air freight forwarding and contract logistics operations centered on inland transportation and warehousing. External business generated through the company's digital logistics platform Cello Square also expanded. Logistics accounted for more than half of Samsung SDS's total revenue, supporting overall top-line growth.

Samsung SDS also said it plans to increase its AI infrastructure (data center) capacity, currently 110 MW, to 230 MW by 2029. By 2031, the company aims to expand capacity to more than 800 MW, including projects under its DBO (Design, Build and Operate) business model for data centers.

LG Uplus said on July 29 that its board of directors approved the repurchase of 90 billion won worth of treasury shares. The company said the repurchased shares will be used to enhance shareholder value through measures such as share cancellation. Separately, LG Uplus will invest an additional 1.3 trillion won in the second phase of its AI data center (AIDC) project in Paju.

The company previously canceled treasury shares with a book value of approximately 100 billion won in August last year. In May this year, it also canceled all treasury shares worth about 80 billion won that had been acquired since last year.

LG Uplus also declared an interim dividend of 270 won per share for 2026, an increase of about 8% from the previous year's interim dividend. The record date is Aug. 13, and the dividend will be paid on Aug. 28.

In a separate regulatory filing, the company announced an additional investment of approximately 1.3 trillion won for the second phase of its Paju AI data center project.

LG Uplus is currently constructing a 200-megawatt (MW) AI data center in Paju, Gyeonggi Province, which it describes as the largest AI data center in the Seoul metropolitan area. The facility serves as the flagship site of the group's One LG AI infrastructure initiative, integrating LG Electronics' liquid-cooling technology, LG Energy Solution's high-performance uninterruptible power supply (UPS) batteries and LG Uplus' 27 years of data center operating expertise.

According to the company, the first data hall, scheduled for completion in June 2027, has already been fully leased. The additional investment will fund construction of the second and third data halls, related infrastructure investments and the design of a fourth data hall.

Krafton reported first-half revenue of 2.6616 trillion won and operating profit of 972.5 billion won, setting new records for both metrics on a half-year basis. Revenue and operating profit increased 73.3% and 38.3%, respectively, from a year earlier. First-half operating profit amounted to 92% of the company's total operating profit for all of 2025.

Second-quarter revenue reached 1.2902 trillion won, while operating profit totaled 410.9 billion won, up 94.9% and 67.0%, respectively, from the same period last year. Both figures marked record highs for a second quarter.

Revenue generated by the PUBG franchise increased 25% year over year during the first half. Subnautica 2, which entered early access in May, surpassed 5 million copies sold within 22 days of launch. The company said these performances drove its record first-half results. Revenue by business segment totaled 924.2 billion won from PC games, 1.1537 trillion won from mobile games, 37.7 billion won from console games and 546.0 billion won from other businesses.

Krafton also unveiled five titles targeted for release by 2027. The lineup includes the company's first new project based on the PUBG intellectual property, along with NO LAW, Project ZETA, Age Twisters, and TARAE: The Unbound.

The company also said it completed 300 billion won in treasury share repurchases and a 99.6 billion won capital reduction dividend during the first half. It canceled 336.2 billion won worth of treasury shares, including both newly acquired and previously held shares, and approved the cancellation of treasury shares repurchased during the second quarter. Krafton plans to repurchase an additional 100 billion won of treasury shares in the third quarter and cancel the entire amount.

Hancom reported record quarterly and first-half revenue driven by strong growth in artificial intelligence (AI) products, although operating profit declined as the company increased investments in AI development and commercialization.

The company said on July 30 that standalone revenue for the second quarter reached 52.1 billion won, up 11.9% from a year earlier. Operating profit fell 21.6% year over year to 13.4 billion won, resulting in an operating margin of 25.7%.

Standalone revenue for the first half totaled 98.6 billion won, an increase of 7.2% from the same period last year and the highest first-half revenue in the company's history. First-half operating profit declined 9.6% to 31 billion won, while the operating margin stood at 31.5%.

AI products were the primary driver of revenue growth. Hancom generated 13.5 billion won in AI-related revenue during the first half, surpassing its full-year AI revenue of 8.9 billion won recorded in 2025. AI products accounted for approximately 13.7% of standalone revenue during the period.

The company has been expanding sales of AI-enhanced offerings to existing Hancom Office customers, including Hancom Assistant, Hancompedia, and Hancom Docs AI. Revenue growth was driven by public-sector and enterprise customers upgrading traditional document software deployments to AI-integrated packages.

Despite stronger sales, profitability declined as Hancom increased spending on research and development, talent recruitment and commercialization initiatives related to AI products. The company also incurred upfront costs associated with bringing new products to market, contributing to lower margins despite higher revenue.

On a consolidated basis, first-half revenue totaled 183.6 billion won, up 24.6% from a year earlier. Consolidated operating profit declined 7.6% to 22.9 billion won. The trend of rising revenue and lower earnings was reflected across both the parent company and its subsidiaries.

Hancom has set full-year standalone targets of 210 billion won in revenue, 60 billion won in operating profit, and 31.5 billion won in AI revenue. As of the end of the first half, the company had achieved 47% of its revenue target, 51.7% of its operating profit goal and 42.9% of its AI revenue objective.

In the second half, Hancom plans to unveil a beta version of its Agentic Operating System (Agentic OS), designed to connect multiple AI models with enterprise workflow systems. The company said the initiative is part of its broader strategy to transform its business from a document software provider into an AI-powered workplace platform.

Kakao and its labor union have reached a tentative agreement in this year's wage negotiations, marking a significant step toward resolving a labor dispute that escalated into partial strikes and a full-day work stoppage following the breakdown of mediation talks in May.

According to industry sources on July 30, Kakao and the Kakao chapter of the Korean Chemical, Textile and Food Workers' Union reached a provisional agreement on wage negotiations the previous day. The two sides reportedly held 18 rounds of negotiations this year before arriving at the tentative deal.

The union plans to hold briefing sessions for members over two days next week to explain the proposed agreement. A ratification vote will then be conducted to determine whether union members approve the terms. If approved, the agreement will proceed to formal signing, concluding this year's negotiations.

Key details, including the wage increase rate and performance bonus amounts, have not been disclosed. Both management and the union agreed not to release specifics of the tentative agreement until the membership vote is completed.

As a result, it remains unclear how far the final terms differ from the proposals previously put forward by either side. The details are expected to be announced only after the agreement is formally ratified.

Major issues during the negotiations included the overall salary increase rate, the size of the performance bonus pool and whether restricted stock units (RSUs) should be included when calculating performance-based compensation.

Kakao currently grants RSUs worth approximately 5 million won to long-serving employees. The union has argued that RSUs should be treated separately from cash performance bonuses rather than being counted as part of a single compensation package.

According to industry sources, the union had sought a cash performance bonus of roughly 10 million won per employee in addition to separate RSU awards. The company maintained that overall compensation, including RSUs, as well as future investment obligations, should be considered when determining bonus levels.

The tentative agreement applies only to wage negotiations involving Kakao's parent company and does not cover all affiliates within the Kakao group.

Meanwhile, the labor union at KakaoBank remains in a separate wage dispute and has announced plans to conduct a full-day strike on July 31 following the breakdown of its own negotiations.

South Korea's Personal Information Protection Commission (PIPC) has imposed a fine of approximately 54 billion won on KT over a personal data breach involving unauthorized small-cell base stations.

The PIPC said on July 30 that it had held a plenary meeting on July 29 and resolved to impose corrective measures against KT, including an administrative fine of 53.979 billion won and an additional penalty of 7.2 million won, after determining that the company violated the Personal Information Protection Act.

The case involves the theft of personal information and mobile authentication data from KT subscribers through the use of illegal femtocells. Femtocells are small cellular base stations installed in locations such as buildings and underground facilities to improve mobile network coverage.

According to the investigation, attackers extracted digital certificates from lost or misplaced KT femtocells and installed them on unauthorized devices they had built themselves. The illegal femtocells were then used to connect to KT's mobile network and induce subscribers' devices to route communications through them. Through this process, the attackers obtained phone numbers, International Mobile Subscriber Identity (IMSI) numbers and International Mobile Equipment Identity (IMEI) numbers.

The attackers subsequently combined the stolen information with names and dates of birth to initiate mobile micropayment transactions. Authentication codes delivered through text messages and automated voice calls were intercepted and used to complete the transactions.

The PIPC determined that 16,647 individuals had their personal information exposed. Among them, 368 people suffered unauthorized micropayment transactions, resulting in financial losses totaling approximately 240 million won.

KT initially reported that 22,227 subscribers had been affected. However, the PIPC adjusted the figure after removing duplicate records, including corporate accounts and multiple subscriptions held by the same individual.

The regulator concluded that KT had failed to adequately manage its femtocell infrastructure and internal network access controls. Investigators found that femtocell certificates were issued with a validity period of 10 years and that access was not restricted by Internet Protocol (IP) address, allowing connections from external networks, including overseas locations.

The investigation also found that attackers could bypass the femtocell management server, while the company lacked mechanisms to detect or block connections from unregistered cell identifiers. No additional authentication procedures were required when unauthorized femtocells connected to KT's internal network.

According to the PIPC, the attackers maintained access to KT's internal network for approximately 11 months, from October 2024 through September 2025. KT discovered the unauthorized access only after receiving customer complaints related to fraudulent micropayment activity.

The regulator calculated the administrative fine based on revenue generated from KT's LTE and 5G mobile communications services. It classified the incident as a "serious violation," citing actual financial harm to customers, the duration of the breach and deficiencies in security safeguards.

During the investigation, the PIPC also found indications that KT had previously failed to report a malware infection to relevant authorities and had deleted logs associated with affected servers.

KT reportedly discovered a backdoor malware infection on certain servers in March 2024 but did not report a personal data breach. At the beginning of the investigation, the company stated that no relevant records had been preserved. However, digital forensic analysis later uncovered evidence suggesting that logs had been deleted.

The PIPC said it plans to refer KT to investigative authorities on the grounds that the company submitted false information and obstructed the investigation.

The regulator noted that the 53.979 billion won fine relates specifically to the personal data breach involving illegal femtocells. Whether additional personal information was exposed through malware-infected servers will be determined separately through ongoing investigations and follow-up reviews.

LG CNS sustained revenue growth in the first half of 2026, supported by expanding artificial intelligence (AI), cloud, financial, and manufacturing projects. However, second-quarter operating profit declined more than 9% from a year earlier, indicating weaker profitability despite top-line sales growth.

On a consolidated basis, LG CNS reported revenue of 1.5208 trillion won and operating profit of 127.9 billion won in the second quarter, the company announced on July 31. Revenue increased 4.2% year-over-year, while operating profit fell 9.2%.

Operating margin for the second quarter stood at approximately 8.4%, down about 1.2 percentage points from 9.6% a year earlier. The decline in operating profit despite higher revenue suggests cost burdens associated with the expansion of large-scale implementation projects and investments in new businesses.

Compared with the previous quarter, performance showed a recovery. Second-quarter revenue rose 15.7% and operating profit increased 35.8% from the first quarter. Operating margin also recovered from 7.2% in the first quarter to the 8% range in the second quarter.

Net profit for the quarter reached 118.7 billion won, up 19.9% from a year earlier. Despite the decline in operating profit, net profit increased as pretax profit rose 16.1% to 152.7 billion won. Specific non-operating income and expense items will be detailed in the upcoming half-year report.

For the first half of the year, LG CNS posted cumulative revenue of 2.8358 trillion won, up 6.1% from the same period last year. Operating profit increased 1.1% to 222.1 billion won. First-half operating margin was approximately 7.8%, down about 0.4 percentage points from roughly 8.2% a year earlier.

Revenue from the core AI and cloud business reached 1.6714 trillion won in the first half, up 5.1% year-over-year, accounting for approximately 59% of total company revenue.

In the cloud segment, revenue reflected progress on hyperscale AI data center projects in Samsong and Jukjeon. LG CNS noted that it secured more than 1 trillion won worth of AI data center DBO (design, build, and operate) contracts in the first half. New order volumes will be recognized as revenue sequentially based on construction progress and contract terms.

The company recently launched XPUWorks, a platform that offers AI infrastructure—including graphics processing units (GPUs) and neural processing units (NPUs)—on a subscription basis. It is also expanding new business models such as modular AI data centers.

In the AI sector, LG CNS carried out AI transformation (AX) projects across manufacturing and logistics for clients including Doosan, the Korea Federation of SMEs (KBIZ), Kurly, and LX Pantos. In the financial and public sectors, the company is expanding projects utilizing its agentic AI platform, AgenticWorks.

The Smart Engineering division recorded first-half revenue of 502.4 billion won, up 6.2% year-over-year. In the smart factory business, external projects in the defense, shipbuilding, semiconductor, and pharmaceutical industries are transitioning into revenue. The smart logistics business also grew, driven by logistics automation center projects for clients in the beauty, food, and fashion sectors.

Revenue from the Digital Business Services division, which includes financial system integration projects, rose 8.8% year-over-year to 662.1 billion won in the first half.

In overseas operations, LG CNS plans to complete an AI data center in Indonesia during the second half of the year. The company is also expanding manufacturing AX opportunities in North America and financial digital transformation projects across the Asia-Pacific region and Japan.

POSCO DX reported lower revenue and operating profit for the second quarter of 2026. However, both operating profit and new orders rose sharply from the previous quarter, laying the groundwork for an earnings recovery in the second half of the year.

POSCO DX said in a July 30 regulatory filing that it posted consolidated second-quarter revenue of 232.6 billion won and operating profit of 9.9 billion won. Compared with the same period last year, revenue declined 14.8% and operating profit fell 42.3%. Net profit totaled 11.8 billion won, down 18.2% year-over-year. The operating margin was approximately 4.2%.

While earnings remained weaker than a year earlier, profitability improved from the first quarter. Second-quarter operating profit increased 169.6% from the first quarter, and net profit rose 194.6%. Revenue declined 3.7% quarter-over-quarter.

For the first half of 2026, cumulative revenue reached 474.1 billion won and operating profit totaled 13.5 billion won, down 16.8% and 66.2% respectively from the first half of last year. The steeper decline in first-half operating profit relative to revenue reflected weaker profitability in the first quarter.

Order intake improved. POSCO DX recorded 230.4 billion won in new orders in the second quarter, up 32.8% from a year earlier. As of the end of June, its order backlog stood at approximately 960 billion won.