- Seoul invests $390M in local AI to cut reliance on foreign tech.
- LG, SKT, Naver, and Upstage lead with models tuned to Korean needs.
- Government will fund only the top two players after progress reviews.
South Korea is making its boldest move yet to build sovereign artificial intelligence, launching a ₩530 billion ($390 million) initiative to fund homegrown large language models. The government has tapped five local players — LG AI Research, SK Telecom, Naver Cloud, NC AI, and startup Upstage — to develop advanced models that can compete with global heavyweights like OpenAI and Google.
A Strategic Push for AI Sovereignty
The Ministry of Science and ICT sees this investment as a way to reduce dependence on foreign technologies and maintain tighter control over sensitive data. Every six months, the government will review the companies’ progress, trimming underperformers until just two remain to lead the nation’s sovereign AI push.
LG, SK Telecom, and Naver Take Aim at Global Rivals
LG AI Research is betting on efficiency and industry-specific intelligence with its Exaone 4.0 model, aiming to deliver practical applications across biotech, materials, and manufacturing without burning through massive GPU clusters.
SK Telecom, meanwhile, is leveraging its telecom infrastructure and 10 million users of its AI agent “A.” to integrate AI into everyday services. Its A.X model, built on Alibaba’s Qwen, already claims stronger performance in Korean than GPT-4o. With new partnerships, a hyperscale AI data center, and open-source contributions, SKT is positioning itself as a bridge between cutting-edge research and real-world impact.
Naver Cloud brings its “AI full stack” to the table, from massive data centers to consumer services. Its HyperCLOVA X model powers search, shopping, and chatbots, while its multimodal reasoning tools aim to compete directly with Microsoft and Google.
Upstage: The Startup Challenger
Upstage stands out as the only startup in the race. Its Solar Pro 2, recognized internationally as a frontier model, is designed to outperform larger global models on Korean benchmarks with just 31 billion parameters. The company is targeting practical deployments in industries like finance, law, and healthcare while promoting a broader AI-native startup ecosystem in Korea.
Also Read: ICE Raid at Hyundai Plant Sparks U.S.-South Korea Investment Concerns
South Korea’s AI strategy is clear: it doesn’t need to outspend the U.S. or China. Instead, it aims to outsmart them by building models deeply tuned to its language, culture, and industries. If successful, the initiative could redefine how smaller nations carve out space in a global AI market dominated by tech giants.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
