South Korea to invest billions in AI to strengthen industry

South Korean President Yoon Suk Yeol has announced a major investment of 9.4 trillion won ($6.94 billion) in artificial intelligence (AI) by 2027. Additionally, a separate 1.4 trillion won fund will be established to support the growth of AI semiconductor firms within the country.

With countries like the United States, China, and Japan providing significant policy support to enhance their semiconductor supply chains, South Korea is taking proactive measures to remain competitive. Semiconductors are vital to South Korea’s export-driven economy, with chip exports reaching a 21-month high in March, contributing nearly a fifth of the country’s total exports.

The investment and fund allocation will enable South Korea to expand research and development in AI chips, including artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips. Moreover, the government plans to foster the development of next-generation artificial general intelligence (AGI) and safety technologies. President Yoon aims for South Korea to rank among the top three countries in AI technology, including chips, and to capture a 10% or more share of the global system semiconductor market by 2030.

Source: Reuters