AR Leader Xreal Says Korea Chases Profit, China Embraces Risk

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six customized news articles tailored to each reader type.

1. "China's Fearless Business Environment Is the Secret...Korea Falls Behind Chasing Short-Term Profit"

- Key Summary: Yin Zhichang, Asia-Pacific head of Xreal, the world's top augmented reality (AR) glasses company, pointed out the reason why Korea, an IT powerhouse, has ceded market leadership to China: "Korean conglomerates prioritize whether a business will immediately generate revenue, but Chinese companies focus on product innovation itself rather than profit and are not afraid of failure." He explained that regions like Shenzhen in China have built complete supply chains and industrial infrastructure through massive government investment, creating an environment where small and medium-sized enterprises and startups can advance their technology without fearing failure. Xreal sold 50 million devices worldwide last year, while sales in the Korean market remain at just 10,000 units. Yin announced plans to expand cooperation with Korean companies soon through "Project Wow."

2. 8.7 Million Smart Glasses Sold Last Year, Zero in Korea...Samsung Vows Turnaround by Connecting 800 Million AI Devices

- Key Summary: According to market research firm Omdia, global AI smart glasses shipments reached 8.7 million units last year, with Meta taking an overwhelming lead at approximately 7.4 million units (85.2%), followed by China's Rokid (340,000 units) and Xiaomi (300,000 units). The Chinese government has included AI glasses in its national subsidy program since January this year, providing up to 500 yuan per product to accelerate market expansion, and the smart glasses market is projected to grow to $200 billion (approximately 300 trillion won) by 2040. Samsung Electronics (005930.KS) is signaling a counterattack, with plans to unveil Galaxy Glasses as early as July, and currently connects 400 million AI devices worldwide with plans to expand to 800 million this year. Samsung is also extending its ecosystem into mobility, including launching a "Car-to-Home" service with Hyundai Motor (005380.KS) and Kia (000270.KS).

3. Regulatory Reform Frozen for Six Years...Korea Has All the Technology and Materials, but Finished Products Remain Out of Reach

- Key Summary: Not a single Korean company has yet officially launched AR glasses, and Korea scored 73.5 points on policy and regulatory environment in an expert perception survey by the Korea Institute for Industrial Economics and Trade, far behind the United States and China (92 points each). The biggest obstacle is the gap in the Personal Information Protection Act, as the lack of clear regulations on video collection and use in public places forces companies to pursue their businesses while bearing legal risks. The government's VR/AR regulatory reform roadmap has been stalled for six years since its 2020 announcement, and the share of the digital content industry promotion budget allocated to device technology development is just 5.6%. Meanwhile, the "paradox of regulation" continues, with Korea failing to release finished products despite possessing core hardware such as semiconductors, batteries, and displays, along with world-class design capabilities.

4. AI Surpasses PBs...First Reversal in Bank Recommendation Sales

- Key Summary: At KB Kookmin Bank's wealth management service K-Bot Saem, AI-recommended new product sign-ups accounted for 55% last year, surpassing private banker (PB) recommendations (45%) for the first time. Just in 2024, AI's share was 36% and experts' was 64%, but the main reason for the shift was growing user numbers amid the generative AI boom led by ChatGPT. Since its launch in 2018, K-Bot Saem has accumulated 170,000 sales transactions worth approximately 600 billion won. "This is a case that has demonstrated the potential of selling financial products and charging fees through AI," a KB Financial Group official said.

5. From U.S. Stock Recommendations to Sign-Up in Just 10 Minutes...AI Has the Edge on Small-Investment Advice

- Key Summary: The AI portfolio on KB Kookmin Bank's KB Star Banking app completes everything from linking MyData from other financial institutions to investment tendency analysis and actual product sign-up within 10 minutes, and offers asset allocation subdivided into 11 categories including U.S., European, Japanese, and Chinese stocks—finer than expert portfolios (5 categories). As of the end of March on the Koscom testbed, banks' robo-advisor customers numbered 177,659, up 5.5% from a year earlier, with assets under management rising 5.6% to 642.5 billion won and average assets per person at about 3.61 million won. Meanwhile, in a Hana Institute of Finance survey of 713 wealthy individuals, only 18% said they trusted AI financial transactions, and the number of PB centers at the four major banks (KB, Shinhan, Hana, and Woori) actually increased from 74 at the end of 2021 to 81 in March this year. KB Kookmin Bank's PB staff also grew 34% over five years from 77 in 2021 to 103 in February this year, clearly establishing a dual structure in which AI handles small-scale untact investments while in-person experts manage high-value assets.

6. SK Broadband Vows to Turn All Employees Into AI Experts...Declares Inaugural Year of AX Innovation

- Key Summary: SK Broadband has declared this year the inaugural year of AX (AI transformation) innovation, running the intensive AI training program "AI Agent Lab" for all employees from March to October. The program aims to more than double the number of "AI Performers"—those with intermediate or higher capabilities—from the current 9% of all employees to 20%, or 400 people. The curriculum utilizes the latest AI tools such as Gemini and Dify, and is expected to produce at least 400 customized AI work tools within the company. "2026 will be the year when all employees become AI experts and AI becomes the standard way of working," said Min Bu-shik, head of SK Broadband's Corporate Culture Center. "We will establish a culture where employees themselves develop AI agents to innovate productivity and create real business value."