The country short-lists five companies to develop homegrown models.
The South Korean government has selected five groups as candidates to head the development of the country’s sovereign AI models. Among them are Naver and LG Group. Photos courtesy of Naver, LG Group
South Korea’s Ministry of Science and ICT shortlisted five teams this month to take charge of the sovereign AI project, also known as “AI for everyone,” aimed at developing domestically built artificial intelligence models.
The selected consortia are led by the country’s top portal site operator, Naver, mobile carrier SK Telecom, No. 4 conglomerate LG Group, game publisher NCSoft, and high-tech startup Upstage.
A total of 15 groups competed, but only one-hird managed to pass the first round. Included in notable losers were telecom operator KT and Kakao, which runs various mobile platform services.
“This bold challenge is only just beginning and will become the starting point for our ‘AI for everyone’ project,” Science Minister Bae Kyung-hoon said in a statement.
“The government will actively support the advancement of Korea’s AI companies and institutions, as well as the expansion of the nation’s sovereign AI ecosystem,” he added.
Going forward, the five teams will work on their own AI models. Following rigorous evaluations, three teams will be eliminated over the next two years, and two will survive by 2027.
To underpin the five competitors, the Seoul administration vowed to provide $381 million in funds starting next month. The final two winners are expected to receive additional resources.
With these measures, South Korea strives to join the ranks of the world’s top three AI powerhouses, alongside the United States and China.
The initiative is also related to a key campaign pledge of President Lee Jae-myung, who took office in early June. Lee has reiterated a promise to channel $72 billion into AI-related sectors by the end of the decade.
The first industrial site he visited after inauguration was the launch ceremony of an AI data center June 20.
“We have achieved rapid growth so far, but we are now at a critical turning point. Depending on how well we prepare, we could move into a new era, or we could fall behind,” Lee said at the ceremony.
To achieve the ambitious goal, the country has a long way to go. According to last year’s survey on AI capabilities compiled by Tortoise Media, South Korea ranked sixth, following the United States, China, Singapore, the United Kingdom and France.
Can Korea become an AI powerhouse?
Most experts agree that South Korea needs to develop sovereign AI models because of their strategic significance in national security and economic benefits, including industry-specific customization.
“It’s just like nuclear arsenals. Many nations depend on a nuclear umbrella of the United States or Russia. To become a real political power, however, some countries still are trying to build their own nuclear bombs,” Sogang University professor Yoon Seok-bin told UPI.
“You can rely on other countries for AI technologies. But that may force you to sacrifice, like losing control over sensitive national data or paying big costs. Homegrown AI models can address such concerns,” he said.
However, observers are split over whether the government-led approach would work in making South Korea an AI giant comparable to the two runaway global leaders, the United States and China.
“I am not sure whether big corporations like Naver or LG would be willing to disclose their know-how, their most valuable resources in the AI race, through these projects,” Yoon said. “The state-led approach is not likely to work for big companies,” Yoon said.
By contrast, Pohang University of Science and Technology professor Jang Min argued that the government project may be the most viable option under the current situation.
“With limited resources, it makes sense for the government to focus on one or two players and concentrate its support,” Jang said in a phone interview.
“The government also seems intent on steering the private sector toward sovereign AI development. I think that is the right approach.”
