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11h ago

South Korea Launches Five-Year AI Blueprint With Record R&D and 100 Trillion-Won Fund

The government casts large-scale AI deployment as its primary response to a weakening outlook.

South Korean President Lee Jae-myung speaks during a press conference at the Presidential office in Seoul, South Korea, Wednesday, June 4, 2025. Ahn Young-joon/Pool via REUTERS/ File Photo
South Korean President Lee Jae-Myung speaks after receiving letters of appointment during a "people’s appointment ceremony" at Gwanghwamun square in Seoul, South Korea, August 15, 2025. Jeon Heon-Kyun/Pool via REUTERS/File Photo
President Lee Jae Myung (2nd from L) presides over a plenary meeting of the Presidential Advisory Council on Science & Technology held at the presidential office in Seoul on Aug. 22, 2025. (Pool photo) (Yonhap)
This undated file photo provided by the Ministry of Science and ICT shows its sign. (PHOTO NOT FOR SALE) (Yonhap)

Overview

  • Seoul’s plan maps 30 priority projects spanning humanoid robots, autonomous vehicles targeted for commercialization by 2027, unmanned ships by 2030, smart factories and AI chips.
  • The 2026 national R&D proposal rises to 35.3 trillion won, up 19.3% year over year, including 2.3 trillion won for AI—more than double 2025—plus larger outlays for renewables and advanced industries.
  • A National Growth Fund topping 100 trillion won will be raised with private investors to finance AI and other strategic sectors through loans and equity.
  • Five domestic firms—Naver Cloud, Upstage, SK Telecom, NC AI and LG AI Research—were selected for state-backed development of Korean-language AI foundation models, alongside a national training data cluster.
  • The Finance Ministry cut its 2025 growth forecast to 0.9% and set a longer-term goal of lifting potential growth to 3% through AI adoption across business and public services, including AI-based tax consultation by 2026.