South Korea Launches $7 Billion AI Push to Rival US and China
South Korea has announced a massive $7 billion investment in artificial intelligence by 2027, aiming to close the gap with global leaders the US and China. The strategy includes creating a dedicated $1 billion fund for AI chip companies and building new data centers.
Key Investment Goals
- Market Share: Target over 10% of the global AI semiconductor market by 2030.
- K-Cloud Project: Build data centers with tech giants Naver and Kakao.
- Regulatory Ease: Relax rules to provide more data for AI training.
- Infrastructure: Construct new power plants to support data center energy needs.
President Yoon Suk Yeol framed the initiative as a critical battle for technological supremacy. He vowed to build a domestic powerhouse in the AI chip sector.
“We are in a war for 24 hours a day over semiconductor hegemony,” Yoon said in a meeting with his aides. “We will create a Korean version of Nvidia in the AI chip sector.”
Addressing a Strategic Gap
Despite housing memory chip leaders Samsung and SK Hynix, South Korea trails in designing the advanced AI accelerators that power tools like ChatGPT. Nvidia currently commands an estimated 80% of that lucrative market.
The Korean investment is part of a worldwide government race to dominate AI, a technology poised to reshape economies. While the US and China pour funds into R&D, the EU is advancing its AI Act for regulation.
Broader Digital Strategy
This AI funding is embedded in a wider “digital bill” promoting autonomous vehicles, robotics, and other future technologies. The government will offer tax incentives and support to companies investing in these fields.
“We will make sure that Korea becomes a global leader in the AI era,” President Yoon concluded, outlining a clear national ambition.
