TLDR: South Korea has unveiled an ambitious national initiative to invest 71.56 billion USD in artificial intelligence by the second half of 2025, aiming to become a top-three global AI powerhouse and counter economic slowdown. The comprehensive plan includes 30 key projects across various sectors, a $383 million national AI foundation model, and a $35 billion data center project.
Seoul, South Korea – In a strategic move to bolster its economy and secure a leading position in the global technological landscape, South Korea has announced a monumental investment of $71.56 billion (approximately 100 trillion won) into artificial intelligence (AI) initiatives. This comprehensive national plan, set to be fully unveiled by the second half of 2025 under President Lee Myung’s administration, aims to transform the nation into a top-three AI power by 2028, addressing economic slowdown and increasing trade pressures.
The Ministry of Finance emphasized that a significant transformation into AI is crucial for economic revival. The policy packages outlined include a robust framework of tax incentives, substantial financial support, and regulatory improvements designed to foster innovation across various sectors.
The ambitious plan encompasses 30 key projects, with 15 specifically centered on AI. These initiatives span critical industries such as automotive, robotics, home appliances, chips, advanced manufacturing, and even cultural exports like K-food and K-beauty, integrating intelligent systems across diverse sectors.
Key components of this investment include:
National AI Foundation Model: A dedicated fund of $383 million is allocated to develop a national AI foundation model, positioning South Korea to compete with global leaders.
Data Center Project: A massive $35 billion data center project is already underway, slated for completion by 2028, which will serve as a crucial infrastructure to support the nation’s extensive AI ambitions.
Research and Development: President Lee has pledged to reverse previous spending cuts by increasing government research funding to $25.23 billion (35.3 trillion won), underscoring a long-term commitment to innovation.
President Lee Myung has consistently advocated for AI as a national priority, drawing parallels to South Korea’s post-war economic success through strategic investment. During his campaign, he proposed a $735 billion sovereign AI project built on Korean cultural data and language, highlighting the integration of national identity and technological leadership.
To coordinate these extensive efforts, Ha Jung-woo has been appointed as South Korea’s first Chief Secretary for AI Policy. A dedicated AI unit will also be established to support national AI initiatives, reinforcing the government’s commitment.
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Despite projections of a slowing growth rate, potentially falling below 1% by the late 2040s, President Lee expressed confidence in South Korea’s ability to achieve its goal of becoming a top-three AI power. This AI-driven economic rejuvenation is also part of a broader strategy to elevate South Korea into one of the top five cultural powers globally by 2030.
