[AI Powerhouse Dream, Interim Report Card]①AIDC Special Act and GPU Procurement Positive... Inter-Ministerial Collaboration Remains Slow

Bonghoon Bae: "Securing GPUs Without Disruption"

AI Leaders' Successive Election Bids Undermine Policy Continuity

Editor's Note
The Lee Jaemyung administration set the goal of elevating South Korea to one of the global top three in artificial intelligence (AI) when it was launched a year ago. The administration’s main policy pillars include building AI infrastructure, securing AI sovereignty, and implementing AI-based public services. On the occasion of the first anniversary of the Lee Jaemyung government, The Asia Business Daily conducted a mid-term review to assess whether key national projects are on track, while also identifying major tasks that South Korea must address in order to compete as an AI powerhouse alongside the United States and China.

The AI-related policy that the Lee Jaemyung administration is putting at the forefront is the construction of AI infrastructure, dubbed the “AI highway.” The government has staked its efforts on ensuring a stable supply of graphic processing units (GPUs) essential for securing AI infrastructure. The National Policy Planning Committee set an early target of securing at least 50,000 GPUs so that academia, research institutes, small businesses, and venture companies can all make full use of them. The National AI Strategy Committee made this target more concrete by setting the deadline for securing 50,000 GPUs by the fourth quarter of 2030. Already, 13,000 GPUs obtained through last year’s supplementary budget are being deployed in the field. Baek Kun, Deputy Prime Minister and Minister of Science and ICT, announced the ministry’s key achievements over the past year on May 29, stating that the government would secure a total of 260,000 advanced GPUs by 2030 and move to secure even more.

AIDC Special Act and GPU Procurement Are Positive Steps

Deputy Prime Minister and Minister of Science and ICT Baek Kun speaking at a Ministry of Science and ICT press briefing held at the Seoul Central Post Office in Jung-gu, Seoul on the 29th. Courtesy of the Ministry of Science and ICT. Yonhap News Agency.

The government first moved to improve the regulatory framework for building AI infrastructure. Through its AI national agenda, the National Policy Planning Committee promised tax benefits for AI data centers (AIDC) and the enactment of a special law. The “Special Act on Promotion of the AIDC Industry,” which revises regulations on permits, power supply, and location for AIDC construction, passed the National Assembly plenary session on May 7. To encourage AIDC construction outside the greater Seoul area, the special act exempts certain AIDCs below a specified size from power system impact assessments if they are built in non-capital regions. However, the controversial special provisions for power purchase agreements (PPAs) were limited to renewable energy only. In addition, in November last year, the government revised the Enforcement Decree of the Restriction of Special Taxation Act to expand tax credits for AIDC investments.

In addition to infrastructure, the government is accelerating the development of domestic AI models. The goal is to develop versatile AI models accessible to all Korean citizens while also securing AI sovereignty by preventing the outflow of domestic data overseas. The National Policy Planning Committee set the target of developing proprietary AI models at a global level to improve the quality of life for the public. Currently, the Ministry of Science and ICT is overseeing the “Independent AI Foundation Model Project” to create a domestic AI model that will achieve at least 95% of the performance of OpenAI’s generative AI model, ChatGPT. Four companies—SK Telecom, LG AI Research Institute, Upstage, and Motif Technologies—are receiving support such as GPUs to develop these models. The second evaluation for these projects is scheduled for August, and two final teams will be selected.

Efforts are also underway to secure AI talent and develop science and technology using AI. The National Policy Planning Committee pledged to convert software-focused universities into AI-centered universities and to secure 200 new domestic and international researchers, among other outstanding talent. On May 5, the Ministry of Science and ICT converted seven universities from software-focused to AI-centered institutions. Similarly, the Ministry of SMEs and Startups announced recruitment for industry-specialized AI contract departments in March and is training employees from small and medium-sized enterprises to become master’s and doctoral-level AI R&D experts. Additionally, in February, the National AI Strategy Committee adopted the “K-Moonshot Promotion Strategy” to accelerate scientific innovation using AI, identifying 12 key missions across 8 major fields including biotech, energy, and physical AI.

38 Tasks Require Supplementation... Inter-ministerial Collaboration Remains a Bottleneck

Ha Jung-woo, the Democratic Party of Korea candidate for the Busan Buk-gap by-election, is acknowledging his defeat at the Busan Buk-gu election office on the 4th. Photo by Yonhap News

However, not all AI-related national projects are proceeding smoothly. According to the National AI Strategy Committee, as of the first quarter of this year, 288 out of 326 tasks were progressing as planned, while 38 required further supplementation.

While the committee did not specify which projects need improvement, according to the “Korea AI Action Plan Dashboard” operated by the National AI Strategy Committee, as of June 1, 110 projects were approaching or had exceeded their deadlines and were classified as requiring risk management.

Most of these at-risk projects are those being implemented with the involvement of multiple ministries beyond the Ministry of Science and ICT, which is leading AI policy. Examples include expanding training data for advanced healthcare AI and AI transformation (AX) led by the Ministry of Science and ICT, the Ministry of Health and Welfare, and the Ministry of National Defense, as well as securing next-generation technologies in physical AI and AI semiconductors, which are being promoted jointly by the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy.

There are also concerns that continuity of AI policy could be disrupted as key leaders responsible for such policies run for office in elections. Despite having appointed Ha Jung-woo, former head of Naver Cloud AI Innovation Center, and Lim Moon-young, former Chairman of the Digital Special Committee, as Senior Secretary for AI Future Planning and Standing Deputy Chairman of the National AI Strategy Committee respectively, both left their posts within a year to run in by-elections. As both the public and private sectors need to coordinate interests regarding AI policy, the absence of leadership has drawn criticism. A government official commented, “The Ministry of Science and ICT, which is leading AI policy, is suffering from a shortage of personnel,” adding, “The atmosphere has become unsettled since the key leaders responsible for AI policy left to run in the elections.”

This content was produced with the assistance of AI translation services.