South Korea to appoint science minister as deputy prime minister to lead AI race

South Korea to Promote Science Minister to Deputy Prime Minister to Lead AI Push

South Korea plans to raise its new science minister to deputy prime minister status, giving the office authority to coordinate national R&D and AI strategy. The move aligns with President Lee Jae-myung's pledge to compete at the top tier of AI leadership. He referenced this focus during public remarks on June 6, 2025.

Why this matters

Centralizing R&D under one senior office can cut approval delays, redirect funds faster, and align ministries around measurable outcomes. It signals stronger backing for compute infrastructure, semiconductor leadership, and AI adoption across public services. For finance and government leaders, this sets the stage for bigger, more coordinated projects and clearer policy direction.

What could change

• Single point of accountability: One office sets priorities and measures ROI across agencies.
• Budget consolidation: Larger, multi-year programs for compute, chips, and data infrastructure.
• Public sector AI adoption: Standardized procurement, evaluation frameworks, and shared platforms.
• Talent and data policy: Visa pathways for AI talent, incentives for industry-academia labs, and clearer rules on data access and privacy.
• Global partnerships: Joint projects with allies on semiconductors, cloud, and safety standards.

Implications for finance and markets

• Capex cycle: Expect spend on data centers, GPUs, networking, and power-potential upside for chipmakers, equipment providers, and utilities.
• Funding mix: Blended finance models (sovereign funds, policy banks, private equity) to de-risk strategic projects.
• Startup pipeline: More grants, regulatory sandboxes, and public datasets could boost AI startups and M&A activity.
• Export leverage: Stronger position in memory, foundry services, and AI platforms supports trade balance and valuation multiples.

Signals to watch

• Legislative steps: Any cabinet or parliamentary action to formalize the deputy PM role and its mandate.
• Budget line items: Size of allocations for compute, national datasets, and AI in public services.
• Procurement rules: Standard templates for AI risk evaluation, privacy, and model auditing.
• International MOUs: Partnerships on chips, AI safety, and cloud capacity.

What government leaders can do now

• Map all AI and R&D programs across ministries; consolidate overlapping efforts under one KPI set.
• Create a 24-36 month compute and data roadmap with quarterly milestones and power planning.
• Stand up an AI procurement playbook: use cases, security controls, fairness checks, and vendor SLAs.
• Fund workforce upskilling for analysts, auditors, and regulators to evaluate AI systems.

What investors and companies should do

• Position for capex: semiconductors, networking, power, and specialized AI software.
• Engage early with public buyers; align offerings to standardized evaluation criteria.
• Track grant programs and tax credits to optimize project timing and capital structure.
• Prioritize compliance features (privacy, model risk, audit logs) to shorten sales cycles.

Risks

• Bureaucratic overlap: If mandates are unclear, execution slows and budgets fragment.
• Supply constraints: Delays in GPUs, power, or cooling can stall delivery.
• Data governance: Weak guardrails raise legal and reputational risks.
• Global competition: Policy shifts in the US, EU, or China could redirect capital and talent. See comparative policy tracking via the OECD AI Policy Observatory.

Metrics to track

• Annual public R&D spend and the share allocated to AI and compute.
• Installed AI compute capacity (GPUs, interconnect) and data center power availability.
• Public sector AI deployments and measured cost/time savings.
• Patent filings, AI exports, and private co-investment ratios.

Actionable resources

• For teams building capability by role, see curated AI learning paths: AI courses by job.

Bottom line

By raising the science portfolio to deputy prime minister level, South Korea is consolidating AI and R&D strategy under one accountable leader. If paired with clear budgets, procurement rules, and talent policy, this can speed delivery and strengthen competitiveness across chips, cloud, and public service innovation.