South Korea has announced one of the world’s largest-ever government-led investments in artificial intelligence, vowing to spend 100 trillion won (about $735 billion USD) to develop a “sovereign AI” system built using Korean language, culture, and local data.
The ambitious plan, which President Lee Jae-myung compares to a wartime mobilization, aims to make South Korea one of the global leaders in AI technology and infrastructure.
Key Appointments: New Senior Secretary for AI Policy
On June 15, President Lee appointed Ha Jung-woo, head of the Naver AI Innovation Center, as South Korea’s first senior presidential secretary dedicated exclusively to AI. This marks a new era in Korean tech policy, placing AI at the heart of national strategy. To further support these goals, the government will also establish a dedicated AI policy unit, setting the stage for coordinated public and private investment in AI research and development.
Major Investment in AI Infrastructure: SK Group and AWS Partnership
Coinciding with the government’s policy announcement, SK Group revealed plans to build the country’s largest AI data center in Ulsan’s Mipo National Industrial Complex. The project, launched in partnership with Amazon Web Services (AWS), is expected to require an investment of several trillion won. Once complete, this state-of-the-art facility will supply the massive computing power—particularly GPUs—needed for advanced AI training and operations. High-performance GPUs are in global demand and are considered a crucial bottleneck for any country hoping to compete in next-generation AI.
The “Sovereign AI” Vision: Built for Korea, by Korea
The idea of “sovereign AI” has been championed by Ha Jung-woo and other leading experts in the Korean AI sector. Unlike general-purpose models such as OpenAI’s GPT or Google’s Gemini, a sovereign AI system would be developed and trained primarily on Korean-language data, literature, and cultural content. In public lectures, Ha has argued that Korea must build AI that “understands our culture and history” to ensure local businesses, government, and researchers are not dependent on foreign technologies.
Ha’s vision calls for the government to select three to four national “AI champions”—major Korean tech companies or research institutions—and equip them with at least 5,000 high-end GPUs each. These organizations would lead Korea’s sovereign AI efforts, supported by public funding and infrastructure. Crucially, Ha advocates for open-source releases of any government-supported AI models, allowing wide use across industry, education, and the public sector.
Questions on Funding and Focus
While the 100 trillion-won investment pledge has generated excitement in the Korean tech industry, some experts and business leaders remain cautious. Key questions include how the government will fund such a massive program, how it will be managed, and what specific industries or applications will be prioritized. According to AI industry officials quoted in The Korea Herald, maximizing the impact of this investment means focusing sovereign AI development on sectors where Korea is already globally competitive, such as semiconductors, biotechnology, robotics, and manufacturing.
Industry and Global Context
South Korea’s AI strategy comes amid growing international competition. The United States, China, and the European Union are all ramping up their own sovereign AI projects, aiming to secure national data, ensure digital sovereignty, and foster domestic innovation. South Korea’s plan to develop AI tailored to its own language and society echoes similar efforts in Japan and France.
The government’s push for public-private partnerships, as seen in the SK Group–AWS data center, is seen as essential for keeping up with the rapid pace of global AI development. Korean officials believe that combining state funding with industry leadership will speed up AI breakthroughs and support digital transformation across the economy.
What Happens Next?
South Korea’s government is expected to clarify details of the investment strategy over the coming months, including a timeline, funding sources, and the process for selecting national AI champions. The first priorities will likely be infrastructure development—such as the Ulsan data center—followed by targeted investments in core technologies, education, and open-source AI models.
Observers worldwide are watching closely to see whether Korea’s bold approach can establish it as a leader in the AI era—especially as data sovereignty and digital independence become even more critical issues for governments and businesses everywhere.
The Information is Collected from The Chosun Daily and MSN.
