Sovereign AI effort demands both speed and substance

Officials have launched a competition to pick five national representative AI companies, those that will compete globally with technology developed in Korea. On Aug. 4, the Ministry of Science and ICT said it selected five teams—Naver Cloud, SK Telecom, NC AI, LG AI Research, and Upstage—to build a domestic AI foundation model. The ministry will evaluate each team’s submission every six months and name two finalists by 2027.

The five national representative teams will receive about 530 billion won in government support, including funds for graphics processing units, data acquisition, and talent recruitment. The ministry aims for the domestic models to reach at least 95 percent of the performance of the latest global AI systems and calls the effort sovereign AI. Officials say sovereign AI is central to President Lee Jae-myung’s plan to place South Korea among the world’s top three AI powers, and they plan to build a full AI ecosystem within two to three years.

Ministry officials say Seoul must build an independent AI ecosystem that reflects Korea’s culture, language, and values to end reliance on global big tech. They warn that risks include data leaks, service outages, price increases, and threats to national security. Japan, France, and Germany launched their own domestic AI initiatives as part of similar efforts.

Industry observers say unless Korea’s models match or exceed global performance standards, even massive investment could be ignored by the market, citing the fate of the country’s public key certificates and ActiveX controls in the global security sector. Some experts argue Korea should focus on specialized AI models for sectors such as manufacturing and healthcare, where it already has advantages, rather than directly challenging big tech. They warn the contest risks becoming a showpiece merely to secure government budgets.

The government pledged 100 trillion won in AI funding over five years, a vast sum at home but one that falls short on the global stage. Even as it pursues sovereign AI, Seoul must adopt strategic approaches to deploy its limited resources. Instead of chasing titles such as K-AI or purely homegrown technology, the true goal should be to embed AI deeply across every industry.