Seoul: South Korea has said that its contracted supplies of Nvidia artificial intelligence chips are expected to continue without disruption despite growing controversy surrounding the company's chief executive, Jensen Huang.
The government said existing procurement agreements remained on track and that deliveries of graphics processing units (GPUs) were progressing in stages. The assurance comes as Nvidia faces scrutiny over allegations of a foreign intelligence operation involving its chief executive.
Speaking at a parliamentary budget committee meeting in Seoul on November 9, Vice Minister of Science and ICT Ryu Jemyung said the government did not expect the controversy to affect the delivery of GPUs already covered by procurement contracts.
Ryu said approximately 10,000 GPUs allocated through the government's 2025 supplementary budget had arrived and were being used. South Korean reports have also put the wider number of GPUs acquired and installed through the programme at approximately 13,100.
He added that the country's planned GPU purchases for 2026 were covered by procurement agreements and that deliveries were progressing according to schedule. The government was also communicating with Nvidia Korea to monitor prices and delivery arrangements.
South Korea's procurement system involves the National IT Industry Promotion Agency, cloud service providers and specialist equipment suppliers. The processors are obtained through server manufacturers rather than entirely through direct purchases from Nvidia.
The assurance is important as South Korea continues to expand its artificial intelligence infrastructure and strengthen its position in the global technology sector.
In October 2025, Nvidia announced plans to support the deployment of more than 260,000 GPUs across South Korea's government and private sector. The programme brings together the government and major companies, including Samsung Electronics, SK Group, Hyundai Motor Group and Naver Cloud.
Under the announced plans, the government aims to secure more than 50,000 GPUs. Samsung Electronics, SK Group and Hyundai Motor Group have each announced plans for approximately 50,000 processors, while Naver Cloud is expected to introduce around 60,000.
The initiative is intended to support AI research, cloud computing, industrial automation, robotics and advanced manufacturing. The planned deployment is part of South Korea's broader effort to build domestic computing capacity and compete in the rapidly expanding global AI industry.
A separate procurement programme covers 9,704 GPUs, including 7,688 Nvidia B300 processors and 2,016 next generation Vera Rubin processors. The programme has a reported budget of approximately 2.08 trillion won and involves cloud providers Naver Cloud, Samsung SDS and Elice Group.
Deliveries of the B300 processors are expected to support services beginning in 2026, while the Vera Rubin processors are scheduled for delivery in the first half of 2027.
Government figures showed that 2,608 of the 9,704 processors had arrived by October 8, representing 26.9 per cent of the planned purchase. The government has not publicly disclosed an updated delivery figure covering the period since then.
The supply assurance comes as Nvidia faces growing scrutiny over allegations involving Huang and a reported foreign intelligence operation.
On November 8, Nvidia's board announced an independent investigation into reports that Huang had been targeted by a foreign intelligence effort. The investigation is being overseen by a committee of independent directors, with assistance from external legal advisers.
The board said it had no reason to believe that US national security or Nvidia's confidential information had been compromised. Huang has agreed to cooperate fully with the investigation, while the board has expressed confidence in his leadership.
The controversy follows reports by The New York Times, citing US intelligence sources, that Alice Huang, a Chinese businesswoman and former executive of Singapore based Megaspeed International, was suspected of gathering information for Beijing.
Huang acknowledged an extramarital relationship and apologised to his family and Nvidia employees. However, the allegations concerning possible intelligence activities have not been publicly established through an official investigation.
US President Donald Trump said on November 9 that the FBI was looking into the matter. He also said he had spoken with Huang, who told him that he had no knowledge of the woman's alleged intelligence activities.
China has rejected the allegations. Chinese Foreign Ministry spokesperson Guo Jiakun described the claims as unsubstantiated accusations against the country.
Despite the controversy, Nvidia's business activities in South Korea have continued. The company's AI Day Seoul event took place at the COEX convention centre on November 9 and 10, although Madison Huang, a senior Nvidia director and daughter of the chief executive, cancelled her planned visit.
During the event, Nvidia also signed a cooperation agreement with SK Telecom and South Korean AI chipmaker Rebellions to explore the integration of domestically developed neural processing units into Nvidia's AI computing systems.
The continuing business engagements highlight the importance of South Korea's partnership with Nvidia as the country expands its AI infrastructure.
For South Korea, reliable access to advanced processors is essential to its ambitions in AI research, semiconductor technology and industrial development. While the investigation into Nvidia's chief executive continues, the government remains confident that its existing contracted GPU supplies will proceed as planned.