South Korea is taking significant steps to bolster its position in the rapidly evolving global AI market. The country recently held its third National Artificial Intelligence Committee meeting, where it outlined an ambitious plan to propel South Korea into the ranks of the world’s top three AI powerhouses.
This move comes in response to recent developments in the global AI landscape, where major advanced nations such as the United States, the European Union, and France have announced large-scale private investments in AI. Additionally, the emergence of DeepSeek as a formidable competitor in the global AI arena has further intensified the race.
In light of these developments, the South Korean government has unveiled a comprehensive strategy to nurture domestic AI startups. The plan includes the creation of a 3 trillion won fund by 2027, with the goal of fostering five AI unicorns. This initiative demonstrates South Korea’s commitment to accelerating its AI capabilities and competing on the global stage.
The government’s strategy encompasses several key areas. Firstly, it aims to enhance the capabilities of AI startups across various sectors. This includes supporting collaborative AI model development between companies, fostering AI service providers in industries such as manufacturing and finance, and encouraging the creation and dissemination of new business models.
Another crucial aspect of the plan is the establishment of a ‘Data Generation LAB’ to facilitate the creation and synthesis of data. The government also intends to designate 100 specialized AI companies in the manufacturing sector, providing them with substantial financial support of up to 10 billion won per company, along with assistance in expanding their workforce and market reach.
To promote innovation through public-private partnerships, the government plans to facilitate collaboration between large corporations and startups. This collaboration will focus on developing AI services tailored to solve specific industry problems. Successful cases from the Ministry of Industry’s autonomous manufacturing projects for various industries will be disseminated through smart factory implementation initiatives.
Furthermore, the government will provide education and consulting services to help SME executives and employees better understand the importance and applications of AI in their businesses.
Lastly, the plan includes a significant increase in financial support for AI startups. By 2025, 60% (5.7 trillion won) of the total new liquidity supply for SMEs (9.8 trillion won) will be allocated to innovative growth areas such as AI and semiconductors. Additionally, by 2027, a fund of approximately 3 trillion won, combining government and private capital, will be established to provide substantial financial backing to AI startups.
