On February 20th, South Korea’s Ministry of Science and ICT unveiled a plan to expand the nation’s AI computing infrastructure at the 3rd National AI Committee. This marked the start of a multi-pronged effort to bolster South Korea’s position in the global AI race.
The strategy gained further momentum in March when the government amended the “Restriction of Special Taxation Act.” This amendment designated AI as a national strategic technology, providing enhanced tax support for AI research and development (R&D) and infrastructure investment.
Further concretizing these goals, the Ministry of Science and ICT announced new initiatives on August 18th, backed by a significant supplementary budget of 1.8 trillion won allocated to the AI sector.
A primary focus of this funding is the acquisition of 10,000 advanced graphics processing units (GPUs) within the year. GPUs are essential for the deep learning processes underpinning modern AI, and this investment highlights the government’s commitment to bolstering computational power for AI research.
The supplementary budget also earmarks approximately 200 billion won for developing world-class indigenous AI models. This initiative will manifest in the “World Best LLM Project,” launching this year with 193.6 billion won in funding. The project will provide intensive support, including access to GPUs, data, and top talent, to up to five elite domestic AI teams over three years.
“In the global competition where every moment counts for AI leadership, this supplementary budget is a very timely and significant decision,” stated Minister of Science and ICT Yoo Sang-im. He emphasized the urgency of these initiatives, noting that “a one-year delay results in a three-year loss of competitiveness.”
Further bolstering the domestic AI ecosystem, the government plans to expand demonstration projects for the early commercialization of domestically produced AI semiconductors. Funding for this initiative will increase from 29.8 billion won to 74.2 billion won. The establishment of a domestic NPU (neural processing unit) demonstration infrastructure, optimized for large-scale commercial AI services, is also on the agenda.
Recognizing the importance of international collaboration and talent development, the Ministry of Science and ICT will launch the “Global AI Challenge” in the second half of the year. This 10-billion-won initiative aims to attract top AI talent from around the world. Complementing this, the new “AI Pathfinder Project” will allocate up to 2 billion won annually over three years to attract leading international researchers to South Korea.
To nurture the next generation of researchers, the government will invest 30 billion won to support 400 outstanding postdoctoral researchers in AI convergence fields (the intersection of AI with other science and technology disciplines).
Finally, recognizing the vital role of startups in the AI ecosystem, the Ministry is significantly expanding the “AI Innovation Fund.” Initially planned at 90 billion won for this year, the fund will now reach 200 billion won. This expansion is facilitated by an increase in the 2025 government budget from 45 billion won to 100 billion won.
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