South Korea has announced plans to significantly boost its investment in artificial intelligence, with a focus on developing infrastructure and encouraging the adoption of the technology. In his annual parliamentary budget speech, President Lee Jae Myung outlined a major transformation aimed at propelling the country into the ranks of the world’s top three AI powers, alongside the United States and China.
The government has allocated 10.1 trillion won ($7 billion) for AI development, more than triple the current year’s budget. This investment is part of a broader budget plan totaling 728 trillion won, which represents an 8.1 percent increase from the previous year. The AI budget will be split, with 2.6 trillion won dedicated to introducing AI across various industries, daily life, and the public sector, and 7.5 trillion won allocated for talent development and infrastructure building.
South Korea is well-positioned to become a leader in the AI industry, given its strong presence in the memory chip market. The country is home to two of the world’s leading memory chip makers, Samsung Electronics and SK hynix, which manufacture essential components for AI products and data centers. Both companies have recently partnered with OpenAI, the maker of ChatGPT, to provide chips and equipment for its Stargate AI infrastructure project.
The investment in AI is expected to have a significant impact on the country’s economy and industry. Jensen Huang, CEO of Nvidia, has announced plans to supply 260,000 of the company’s advanced chips to South Korea, citing the country’s technological expertise and manufacturing capabilities. Huang described the goal as “ambitious” but achievable, given South Korea’s strengths in the field.
The budget proposal is likely to pass, given the ruling party’s majority in parliament. The increased investment in AI is a significant step towards establishing South Korea as a major player in the global AI industry. With its strong foundation in technology and manufacturing, the country is poised to make significant strides in the development and adoption of AI. The outcome of this investment will be closely watched, as it has the potential to drive innovation and growth in the industry.