South Korea has announced plans to significantly boost its investment in artificial intelligence, focusing on infrastructure development and encouraging the technology’s adoption. 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 (about $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, 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 earmarked 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 produce 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, announced plans to supply 260,000 of the company’s advanced chips to South Korea, citing the nation’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. This increased investment in AI is a significant step toward 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 substantial strides in the development and adoption of AI, and the outcome will be closely watched for its potential to drive innovation and growth.
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