Transplanting the 'K-AI Package' into Developing Countries: Supporting Growth and Expanding the Global Base for Korean AI

Ministry of Economy and Finance Holds External Economic Ministers' Meeting on July 20

The government plans to introduce the Korean-style artificial intelligence (K-AI) model to developing countries through concessional official development assistance (ODA). By providing comprehensive support that includes AI solutions, AI data centers, and power facility packages across various sectors such as water resources, healthcare, and energy, the government aims to support the growth of developing nations while also boosting the global expansion base for Korean AI companies.

Yonhap News

On July 20, the Ministry of Economy and Finance announced the "Strategy for Promoting the Korean-Style AI Package Centered on Concessional Official Development Assistance (ODA)" at the government conference held at Sejong Government Complex. An AI package refers to an integrated support program that bundles AI solutions based on domestic technology and components, along with AI data centers and renewable energy generation facilities. This initiative will be implemented through the Economic Development Cooperation Fund (EDCF).

The government plans to first develop a signature Korean-style AI project model with high symbolic value and ripple effects, and promote its spread to developing nations. In particular, the government intends to discover project menus based on Korean technology and components in seven fields where Korea has strengths: water resources (such as water purification, leak detection, and dam water level control), healthcare (including diagnostic assistance and new drug development), energy (such as renewable energy generation operation management and integrated management of power energy consumption data), transportation (like smart city traffic integration platforms), agriculture (integrated control of smart farms), culture (such as cultural property restoration), and education (AI-driven education and talent development platforms).

An official from the Ministry of Economy and Finance stated, "We will provide support by organically linking various development cooperation tools such as EDCF, Knowledge Sharing Program (KSP), trust funds and co-financing with Multilateral Development Banks (MDBs), and development finance going forward."

Furthermore, to lay the foundation for the expansion of the K-AI package, the government will participate in the design of laws, systems, and standards related to AI in recipient countries, creating a business-friendly environment for Korean companies and technologies. Additionally, the government plans to conduct joint research with advanced nations to eliminate institutional and technological barriers in the market, positioning itself as a "rule setter." Moreover, by leveraging global AI hubs established in Korea in partnership with organizations such as the World Bank (WB), the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IDB), and the Asian Development Bank (ADB), the government aims to continually expand the global reach of Korean AI firms and technologies through the K-AI package.

Starting in the second half of the year, the government will identify project demand from recipient countries and propose business menus, aiming to implement these projects in concrete terms.

Meanwhile, during the same meeting, discussions were also held on Korea-U.S. trade issues and the Green Economy Agreement (GEPA) alongside the K-AI package. The government announced its intention to stabilize Korea-U.S. trade relations by closely coordinating with the United States on follow-up measures regarding tariff actions such as investigations under Section 301 of the U.S. Trade Act, which address overproduction and forced labor, as well as non-tariff measures.

In response to the emergence of major countries' climate change actions as new protectionist trade barriers, the government will proactively participate in discussions on new trade norms such as the Green Economy Agreement (GEPA) and lay the groundwork for strengthening the competitiveness of Korea's green industries.

The meeting also addressed ways to conclude the Korea-Bangladesh Comprehensive Economic Partnership Agreement (CEPA). Bangladesh is a key market in South Asia with significant growth potential and serves as a strategic foothold for market entry in the region. The government anticipates that the conclusion of Korea-Bangladesh CEPA will expand economic cooperation beyond the existing focus on textiles and apparel to include infrastructure, manufacturing, digital, energy, and various other sectors.

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