Penguins do not live in the Arctic. The Arctic Circle is found in the earth's northern hemisphere, and native penguins are only live in the southern hemisphere.
Though penguins and polar bears are sometimes pictured together in fictional scenarios, they do not actually share a natural habitat. That's because polar bears are found only in the Arctic Circle, and penguins only reside in the southern hemisphere, particularly near the South Pole, which is on the opposite side of the planet from the Arctic. Penguin populations are found in various locations throughout the southern hemisphere, with some native penguin populations appearing as far north as the equator.