10. Introduction to South Korea’s AI computing power development strategy _ "8. Regional development of AI"

South Korea’s journey towards becoming an AI superpower is driven by the country’s AI strategy. Since the establishment of the Presidential Committee for the Fourth Industrial Revolution in November 2017, the South Korean government has supported and nurtured the growth of AI, data, and network technologies through policies such as the AI R&D Strategy, Data Industry Activation Strategy, System Semiconductor Strategy, 5G+ Strategy, and Manufacturing Revitalization Strategy.

In October 2019, President Moon Jae-in announced the “Presidential Initiative on Artificial Intelligence.” The initiative aims to raise public awareness of the potential of AI as a driver of the Fourth Industrial Revolution and to mobilize the nation’s collective capacity to capitalize on the opportunities presented by AI-driven change.

South Korea has several advantages in AI, including high levels of education, a propensity to adopt new technologies, first-rate ICT infrastructure, and dominance in the semiconductor and manufacturing technology markets.

South Korea’s main AI goals are as follows:

- Global Digital Competitiveness: South Korea aims to rank third in global digital competitiveness by 2030.

- Achieving economic surplus through artificial intelligence: The country plans to generate an economic surplus of 455 trillion won by harnessing the power of artificial intelligence.

- Improved quality of life: South Korea hopes to become a top 10 country in terms of quality of life by emphasizing the positive impact of AI advances on society.

Achieving these goals will require joint efforts from both the public and private sectors. While the private sector drives innovation, the government supports infrastructure development, private sector innovation, talent cultivation, and improvements in the regulatory and legal framework for large-scale AI projects.

Main Participants

South Korea’s approach to AI development follows its proven state-led development model, which directs resources toward developing industries, technologies, and human capital to promote economic growth. Targeted government investments in education and R&D will create a highly skilled workforce.

Lee Sedol's defeat to DeepMind's AlphaGo in 2016 sparked Seoul's deeper interest in artificial intelligence; just two days after the incident, the South Korean government announced an $863 million investment in artificial intelligence.

South Korean policymakers have adopted an "approval first, regulation later" approach to the AI industry, allocating $3.8 billion in the 2024 research and development budget to promote 12 strategic technologies, including AI.

Private investment in South Korea is still in its early stages, but is growing rapidly due to government-led incentives and the involvement of tech giants such as Samsung, LG, Naver, and Hyundai Motor in the AI ecosystem. As of 2022, approximately 564 private AI companies are headquartered in South Korea.

In addition, domestic investors actively participated, accounting for about 84% of the transactions of artificial intelligence companies. Foreign investment is also increasing, especially investment from the United States.

South Korea is poised to become a global leader in AI technology, with Naver launching its GenAI tool HyperCLOVA X in 2023 and telecom giant KT Corp announcing a $5.4 billion investment in AI by 2027.