Deputy PM Bae on AI Investment Slowdown Concerns: "Must Not Stop or Delay"

"AI expectations may fuel volatility, but the long-term trend is upward"

Deputy Prime Minister and Minister of Science and ICT Bae Kyunghoon said on Nov. 6, regarding investment in artificial intelligence (AI), “Korea must not be swept up in the current mood and stop or delay its investments.”

Bae made the remarks to reporters after the third plenary meeting of the National AI Strategy Committee, held at Seoul Square that day, in response to concerns that AI investment could contract following the U.S. midterm elections.

Deputy Prime Minister and Minister of Science and ICT Bae Kyunghoon speaks at the third plenary meeting of the National AI Strategy Committee in Jung-gu, Seoul, on Nov. 6, 2026. ksm7976@yna.co.kr Yonhap News

“Even if the United States slows down, other countries, such as China, France and Canada, could instead seize this as an opportunity,” Bae said, predicting that the global AI investment race would not easily lose momentum. He added, “Given the high expectations for AI, the market could fluctuate sharply even in response to small sources of concern. But in my personal view, it will trend upward over the long term.”

On the “cybersecurity czar” proposed by President Lee Jae-myung, Bae said, “I agree that we need a national-level cybersecurity response system.” He added, “This is an issue that requires comprehensive discussions on how the National Security Office, the Prime Minister’s Office and relevant ministries can coordinate the private sector, government and military.” He continued, “As consultations with various relevant agencies, including the National Intelligence Service and the military, are necessary, please wait a little longer for specific plans.”

On developing a homegrown frontier AI, Bae explained that the government was reviewing specific ways to pursue the goal of developing a “hyperscale AI” that surpasses existing AI foundation models. “Ultimately, the goal is to determine how to build a framework that enables Korea to develop frontier AI,” he said. “Our main challenge is figuring out the best way to develop a hyperscale frontier AI that is 10 or 20 times larger than the Sovereign AI Foundation Model.”

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