Government Conducts Comprehensive Review of Independent AI Foundation Model Project... SPC Establishment Under Consideration

Comprehensive Review Including Third Evaluation
Discussion of Special Purpose Company
Ministry of Science and ICT: "No Decision Yet"

There are growing indications that the direction of the government's independent AI foundation model development project may change going forward.

Deputy Prime Minister and Minister of Science and ICT, Hoon Paik, is speaking at the kick-off meeting for the Cybersecurity Specialized AI Model Development Project held at Lotte Hotel in Jung-gu, Seoul on September 22, 2026. Photo by Hyunmin Kim

According to government and AI industry sources on September 28, the Ministry of Science and ICT is currently conducting a comprehensive review of the overall operation plan for the independent AI foundation model project, including whether to proceed with the third round of evaluations.

One of the options being discussed is the possible establishment of a special purpose company (SPC) for the development of a frontier AI model.

Discussions about the future direction of the independent AI foundation model project have already been raised multiple times both inside and outside the government.

At the 2nd Science and Technology & AI Future Strategy Meeting held on August 27, Deputy Prime Minister and Minister of Science and ICT, Hoon Paik, stated regarding the results of the second round of evaluations, "There are still areas for improvement compared to the global standard."

At the time, Deputy Prime Minister Paik added, "It is time to fundamentally reconsider whether the evaluation and competition methods established a year and a half ago are still valid given how quickly AI trends are changing, sometimes every three to six months." He continued, "We will review ways to enhance the government’s focus on investment and the evaluation system."

On this day, the Ministry of Science and ICT also released an explanatory statement, saying, "The government fully recognizes the need to concentrate support for the development of top-tier AI models." However, it added, "No decision has been made regarding the suspension of the independent AI foundation model project or the establishment of an SPC for the development of a top-tier AI model."

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