South Korea plans to invest $3.49 billion in homegrown frontier AI models
South Korea bets $3.49 billion on building a homegrown frontier AI model to rival China's best
What happened
South Korea plans to support domestic frontier models with 4.7 trillion won (about $3.49 billion) in government equity investment. The funding is in the 2027 draft budget and still needs parliamentary approval. A separate funding stream will support adoption of Korean-built models in the domestic economy. The government has also opened a competition to startups; existing finalists from LG AI Research, SK Telecom, and Upstage will not automatically receive additional funding.
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