(EDITORIAL from Korea Herald on Nov. 16)

Nvidia without Huang
: Jensen Huang's departure exposes weak links in South Korea's chip-driven economy

A handshake can open a door; it cannot keep an industry on course. South Korea is confronting that distinction after Nvidia founder Jensen Huang's abrupt departure, which has exposed how much of the company's influence rested on one man's personal authority.

Nvidia announced on Thursday that Huang had resigned after 33 years as CEO. Colette Kress, executive vice president and chief financial officer, was named interim CEO. The decision followed reports of multiple extramarital relationships, including an alleged relationship with an executive at Singapore-based cloud computing firm Megaspeed.

US authorities reportedly suspect the executive of links to Chinese intelligence. The allegations have turned a private scandal into a national security concern.

For Korean businesses, the initial question is whether partnerships built around Huang will survive his departure. He cultivated ties with Samsung Electronics, SK hynix, Hyundai Motor, LG, Doosan and Naver, turning personal rapport into partnerships across the artificial intelligence supply chain.

Korean conglomerates have announced cooperation in projects with Nvidia valued at roughly 660 trillion won ($494 billion). This figure represents the estimated scale of planned ventures, not guaranteed orders or committed spending.

Nvidia's new leadership will decide which commitments merit funding. Korean companies should ensure that relationships once advanced through Huang are secured by formal agreements and accountable teams.

Nvidia's influence over demand poses a broader concern. It has helped finance the cloud providers that buy its chips. A regulatory filing put its commitments to AI cloud partners at $36 billion as of July.

Separately, Nvidia has worked with Wall Street investment firms on financing arrangements designed to channel up to $500 billion in third-party capital into AI infrastructure. Together, they show how chip sales are entwined with funding the data centers that consume them.

That would matter in Seoul. Samsung and SK hynix together accounted for 83 percent of global high-bandwidth memory revenue in the second quarter. Their position means Korea has a central place in the AI supply chain, but also makes its fortunes sensitive to the spending decisions of a major customer.

Korea's semiconductor exports reached $173.4 billion in 2025, about a quarter of the record $709.7 billion in total exports.

Washington adds another complication. Congress is considering the AI Overwatch Act, the MATCH Act and the Chip Security Act. The proposals would tighten oversight of advanced-chip exports, restrict allied sales of chipmaking equipment to China and require tracking mechanisms for chips shipped abroad.

US House lawmakers have advanced the measures and are seeking to attach them to the fiscal 2027 defense authorization bill. The Megaspeed allegations have strengthened the case for tighter controls. For Korean manufacturers, the consequences could extend to equipment deliveries and servicing at factories in China.

The disruption may also create an opening. Nvidia's CUDA software ecosystem gives the company an advantage that a change of chief executive will not erase. Yet customers seeking alternatives may turn to AMD, Broadcom or custom accelerators from Google and Amazon.

All require advanced memory, giving Korean suppliers an opportunity to expand their customer base by tailoring HBM packages to different chip designs rather than relying on Nvidia's specifications.

Seoul and its conglomerates should preserve Nvidia partnerships while turning personal ties into binding commitments. They should find customers beyond Nvidia and coordinate with Washington over Korean plants in China. Public investment plans need to account for weaker AI demand rather than assume the current spending pace will last.

Huang's resignation does not spell the end of the AI boom. It does, however, expose the limits of an industrial strategy built around one executive's judgment and personal network. Korea cannot predict the priorities of Nvidia's next leader. It can decide how much of its industrial future to leave to a handshake.
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