South Korea Commits $11.5 Billion to Become Global AI Leader with Ambitious Five-Year Plan

South Korea’s Science and ICT Ministry Aims for Top Three Global AI Status

The South Korean government has announced an ambitious plan to invest over 16 trillion won (around $11.56 billion) in artificial intelligence over the next five years. The goal is clear: to position South Korea among the top three AI powerhouses worldwide.

This investment focuses on acquiring advanced graphic processing units (GPUs), establishing public AI infrastructure, and designating AI data centers as national strategic technology facilities eligible for tax incentives. The Ministry of Science and ICT presented this comprehensive plan to the Presidential Commission on Policy Planning on June 18.

Key Investment Areas and Strategic Initiatives

• Securing Technical Sovereignty: A 12.3 trillion won initiative will prioritize acquiring 50,000 state-of-the-art GPUs, advancing AI semiconductor development, and creating AI data clusters. This also includes expanding collaboration between public and private sectors.
• Building AI Infrastructure: The plan aims to establish AI data centers nationwide to form an “AI highway,” fully supported as national social overhead capital for the AI era.
• International Collaboration: South Korea will propose AI technology development funds at global summits, seek joint AI research labs in Europe, and attract major tech companies to invest in its AI infrastructure with 607.2 billion won allocated to these efforts.
• Creating an AI Basic Society: With 1.02 trillion won funding, the government plans to develop a domestically built AI model accessible to the public within the year. Starting next year, sector-specific AI models tailored for defense, public services, and industry will be rolled out nationwide.
• Talent Development: A 1.28 trillion won investment will focus on cultivating emerging researchers, graduate-level experts, and practical AI professionals to build a strong talent pool.

National AI Pilot City and Regulatory Support

In Gwangju, the government will create a national AI pilot city, investing 600 billion won to develop an AX demonstration valley and advance 155 R&D projects. Additionally, 163.6 billion won will support sub-legislation for the AI Basic Act and regulatory reforms to foster the AI industry ecosystem. Efforts to build a safe digital society will receive 100.8 billion won in funding.

Tax Incentives and Policy Strengthening

The Ministry of Economy and Finance has proposed classifying AI data centers as facilities for commercialization of national strategic technologies. This classification would extend current tax credit programs—already applied to sectors like future mobility and carbon neutrality—to AI infrastructure.

To ensure effective governance, the Ministry of Science and ICT plans to reinforce the National AI Committee’s role as the central control tower. A new AI Policy Office will be established, with committee members reorganized in July. A formal inauguration ceremony for the restructured committee, chaired by the president, is scheduled for August.

For government professionals involved in AI policy and infrastructure, this initiative represents a significant step toward positioning South Korea as a global AI leader. The comprehensive approach addresses technology acquisition, infrastructure expansion, talent development, and international cooperation.

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