South Korea to invest $3.49 billion in AI model development project

South Korea's Ministry of Science and ICT plans to invest 4.7 trillion won ($3.49 billion) to develop a homegrown frontier artificial intelligence model. The funding, to be managed via an independent fund, is part of a proposed 9.4 trillion-won AI budget request for 2027. The initiative aims to establish AI sovereignty and prevent South Korea from becoming subordinate to other nations, amid intensifying global competition and geopolitical tensions between the United States and China.

South Korean AI investment

• ▪The South Korean Ministry of Science and ICT plans to include the 4.7 trillion-won artificial intelligence investment in its proposed 9.4 trillion-won AI budget request for 2027.
• ▪South Korea's Ministry of Science and ICT plans to invest 4.7 trillion won ($3.49 billion) in a project to develop a homegrown artificial intelligence model.
• ▪The South Korean Ministry of Science and ICT plans to establish an independent fund to support the 4.7 trillion-won artificial intelligence model development project.

Homegrown frontier model development

• ▪The South Korean Ministry of Science and ICT aims to develop a homegrown artificial intelligence model that is on par with global frontier models.
• ▪An official from the South Korean Ministry of Science and ICT stated on September 8, 2026, that exact details of the artificial intelligence model development project have yet to be decided.

Global AI capital race

• ▪The global race to develop highly advanced artificial intelligence is intensifying due to unprecedented reasoning upgrades in AI models.
• ▪The South Korean artificial intelligence initiative comes amid growing calls for government support due to intensifying global competition driven by massive capital investments.

AI sovereignty concerns

• ▪South Korean Science Minister Bae Kyung-hoon stressed the importance of creating a sovereign frontier artificial intelligence model to prevent South Korea from becoming subordinate to other nations.
• ▪South Korean Science Minister Bae Kyung-hoon highlighted the intensifying geopolitical competition between the United States and China as a key driver for South Korea's sovereign AI development.