{"id":66503,"date":"2026-08-13T23:08:14","date_gmt":"2026-08-14T03:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/south-korea-economic-update-money-supply-surges-as-lg-and-nvidia-partner-on-humanoid-robotics\/66503\/"},"modified":"2026-08-13T23:08:14","modified_gmt":"2026-08-14T03:08:14","slug":"south-korea-economic-update-money-supply-surges-as-lg-and-nvidia-partner-on-humanoid-robotics","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/south-korea-economic-update-money-supply-surges-as-lg-and-nvidia-partner-on-humanoid-robotics\/66503\/","title":{"rendered":"South Korea Economic Update: Money Supply Surges as LG and Nvidia Partner on Humanoid Robotics"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea&#39;s M2 money supply grew 6.0% year-on-year in June<\/strong>, accelerating from 5.8% in May, driven by robust semiconductor exports and increased corporate term deposits.<\/li>\n<li><strong>LG Corp (<a href=\"\/stock\/003550\">003550<\/a>) and <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) announced a major partnership<\/strong> to develop next-generation humanoid robots using the <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> Isaac GR00T<\/strong> platform, with a public unveiling slated for Q1 2027.<\/li>\n<li><strong>North Korea issued a stern warning of a &quot;new level of deterrent&quot;<\/strong> in response to upcoming joint military drills between South Korea and the U.S., heightening regional geopolitical tensions.<\/li>\n<li><strong>The KOSPI index pared early gains on Friday morning<\/strong>, as foreign investors engaged in profit-taking following a brief rally fueled by artificial intelligence optimism.<\/li>\n<li><strong>The South Korean Blue House signaled support for parliamentary discussions<\/strong> regarding a constitutional amendment to transition the country toward a two-term presidential system.<\/li>\n<\/ul>\n<h2>Liquidity and Bond Markets<\/h2>\n<p>South Korea\u2019s broad money supply (M2) saw a significant uptick in June, reaching a <strong>6.0% year-on-year growth rate<\/strong>. This acceleration from May&#39;s 5.8% reflects a surge in liquidity, largely attributed to the <strong>cash reserves of semiconductor giants<\/strong> benefiting from the global AI boom. Simultaneously, the <strong>L-money supply<\/strong>, the broadest measure of liquidity, grew by <strong>9.4% year-on-year<\/strong>, up from 9.2% the previous month.<\/p>\n<p>In the fixed-income market, the South Korean government successfully auctioned <strong>50-year Treasury bonds at a yield of 4.620%<\/strong>. This long-term issuance comes amid a period of rising yields, with the 50-year benchmark climbing approximately <strong>0.07 percentage points<\/strong> recently. Analysts suggest the uptick in yields reflects broader market adjustments to persistent inflationary pressures and shifting global interest rate expectations.<\/p>\n<h2>Corporate and Technology Developments<\/h2>\n<p>LG Corp (<a href=\"\/stock\/003550\">003550<\/a>) has entered a strategic execution phase with <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) to pioneer the next era of &quot;Physical AI.&quot; The collaboration focuses on developing a <strong>bipedal humanoid robot<\/strong> powered by the <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> Isaac GR00T<\/strong> foundation model. LG Chairman Kwang Mo Koo and <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> CEO Jensen Huang met in California to finalize the agreement, which also includes the validation of <strong>LG CLOi<\/strong> robots at manufacturing facilities and the development of AI-defined vehicle platforms using <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> DRIVE Hyperion<\/strong>.<\/p>\n<p>The <strong>KOSPI<\/strong> index experienced volatility on Friday, paring early gains of nearly 1% to trade marginally higher by late morning. While tech heavyweights like Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) initially led the charge on AI sentiment, <strong>foreign selling<\/strong> of big-cap shares pressured the benchmark. Market participants remain cautious as they weigh corporate innovation against macroeconomic headwinds and regional security concerns.<\/p>\n<h2>Geopolitical and Political Shifts<\/h2>\n<p>Tensions on the Korean Peninsula are rising as Pyongyang denounced the upcoming <strong>Ulchi Freedom Shield (UFS)<\/strong> military exercises. North Korea\u2019s Foreign Ministry characterized the drills as a &quot;rehearsal for an aggressive war&quot; and threatened to respond with a <strong>&quot;new level of deterrent.&quot;<\/strong> This rhetoric follows recent ballistic missile tests and concerns regarding North Korea&#39;s evolving military capabilities, including battlefield experience gained through cooperation with Russia.<\/p>\n<p>On the domestic political front, the <strong>Blue House<\/strong> has formally backed the opening of parliamentary discussions regarding a <strong>constitutional amendment<\/strong>. The proposed shift aims to replace the current single five-year presidential term with a <strong>two-term, four-year system<\/strong>. While the presidential office emphasized that such changes would not apply to the incumbent, the move represents a significant effort to address the limitations of the &quot;imperial presidency&quot; and modernize South Korea&#39;s political structure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea&#39;s M2 money supply grew 6.0% year-on-year in June, accelerating from 5.8% in May, driven by robust 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