ICT Minister Bae Kyung-hoon declared on Friday that South Korea must now develop frontier AI models matching those of the United States and China. He spoke at a press conference marking the government’s first year in office. He argued the nation’s artificial intelligence strategy can no longer focus only on industrial applications. Instead, Korea should directly challenge the most advanced general-purpose AI systems.
Bae said Korea requires capabilities seen in models like Claude, Gemini, and ChatGPT. He noted that the rise of frontier AI has raised a new question for the country. However, he acknowledged the investment gap remains stark. The government’s entire AI budget roughly matches the spending of a single US Big Tech firm. Therefore, he stressed that talent, data, and infrastructure must all improve together.
Computing infrastructure remains a critical bottleneck. Bae admitted that resources for local AI companies are still far from sufficient. Yet he expressed confidence that more aggressive GPU and AI infrastructure investment could enable Korea to compete. The government is now discussing broader funding for GPUs, data, and talent. At the same time, officials are working to build public consensus behind this frontier AI challenge.
Korea’s existing AI strategy has heavily favored its industrial strengths. These include semiconductors, manufacturing, and physical AI. But Bae made clear that providing general AI services now demands frontier-level model performance. The ministry plans to announce the second phase of the sovereign AI foundation model project later this year. It will also begin constructing a national AI computing center. Moreover, it will support wider use of locally developed AI chips in data centers and major Korean products.
Bae cited the Stanford University AI Index Report. Korea’s tally of notable AI models rose to eight in 2025, up from one in 2024. This placed the country third globally. He said Korea is on course to become a top-three AI power. Still, he stressed that global partnerships cannot replace domestic capability. Having independent AI expertise is essential for tailoring applications to local needs and securing cybersecurity.
A public service named “AI for All” will launch by year-end. It will run on Korean foundation models and offer chatbot functions plus personal AI agents. Special versions will serve older adults and digitally vulnerable groups. The government aims to provide the service free of charge to all citizens through 2028. Separately, Bae emphasized that chip supplier relationships should not define the strategy. He said creating a system that leverages Korean AI semiconductor achievements matters more than partnering with a particular global firm.
