South Korean President Lee Jae-myung’s unveiling of the KRW 100 trillion (USD 73.8 billion) AI investment plan has captured global attention. Branded as a response to an “ultra-technological civilization,” the strategy is one of the boldest national AI initiatives to date. It aims to catapult South Korea into the global top three AI leaders, signaling a high-stakes bet on full-stack AI sovereignty.
But while the ambition is clear, the path to effective execution remains clouded by structural challenges and implementation gaps. Can Korea’s AI G3 vision translate into meaningful outcomes? Or will it fall prey to the same pitfalls that have hampered past innovation agendas?
Key Pillars of the AI G3 Strategy
The Lee administration’s AI roadmap revolves around centralized governance, infrastructure modernization, and talent acceleration:
- KRW 100 trillion AI Investment Plan: Large-scale public-private fund to supercharge AI infrastructure, R&D, and semiconductor capabilities.
- AI Governance Overhaul: Establishment of a new AI Future Planning Office within the presidential office, backed by an incoming Chief AI Officer (CAIO), to coordinate efforts with the Ministry of Science and ICT and the National AI Committee.
- Next-Gen Infrastructure Development:
- KRW 1.8 trillion supplementary budget for rapid GPU procurement (50,000+ units by 2025).
- Creation of AI-specific data centers (AIDCs) and a national AI data aggregation cluster.
- Strategic investments in Neural Processing Units (NPUs), building on Korea’s semiconductor strength.
- Sovereign AI Push: The World Best LLM Project aims to build a large domestic language model with industry players like Naver and LG, reducing dependency on foreign technologies.
- Digital Inclusion: Through the “AI for All” campaign, the government seeks to ensure that citizens and SMEs benefit from AI-driven services and platforms.
DGIST’s Role: Korea’s MIT in the Making?
The Daegu Gyeongbuk Institute of Science and Technology (DGIST) is expected to act as a cornerstone of the AX (AI Transformation) initiative:
- Global Campus & AX Research Institute: Slated to open by 2029 in Suseong Alpha City, these institutions will partner with 240+ local tech firms to drive research and commercialization.
- DGIST MOT Graduate School: A specialized program in technology management and entrepreneurship aligned with Korea’s industrial needs.
- Convergence Talent Education Center: Aims to close the AI skills gap by nurturing local students and feeding talent into both regional and national industries.
President Lee Kun-woo’s leadership vision, framed around the competitiveness of scale, diversity, value creation, and speed, aims to transform DGIST into a global innovation hub.
Challenges on the Road Ahead
Despite the impressive framework, skepticism persists about whether the strategy can be effectively implemented:
- Lack of Tech Transfer Mechanisms: The Citizens’ Coalition for Scientific Society, comprising 265 scientists, warns that there is no clear roadmap for moving AI research into demonstrable commercial outcomes.
- Global Competitiveness Lag:
- According to the Stanford AI Index, Korea lags behind countries like India and Canada in terms of private AI investment and the global presence of AI firms.
- A growing outflow of AI professionals is contributing to a domestic talent shortage.
- Ecosystem Fragmentation: Critics argue that the AI ecosystem, while expanding, still lacks cohesion in linking academia, industry, and government.
Which Sectors Could Benefit Most?
If executed well, the AI G3 plan could drive innovation across several key industries:
- Healthcare: Advanced AI computing could accelerate diagnostics, drug discovery, and patient monitoring.
- Finance: Regulatory clarity and digital infrastructure upgrades may foster fintech innovation, including AI-enabled investment and fraud detection tools.
- Education: The integration of AI in schools, including digital textbooks and mandatory AI literacy programs, could transform learning models nationwide.
- Manufacturing & Software: AI-driven internalization and M&A activity are expected to reshape supply chains, software development, and automation.
Editorial Take: Bold Vision, But Execution is Everything
South Korea’s AI G3 strategy is visionary and well-timed, offering a rare opportunity to align national resources, talent, and industry with the demands of the AI era. However, the gap between ambition and action remains significant.
For this initiative to succeed, the government must:
- Provide granular execution plans with clear KPIs for each phase of the AI lifecycle—from research to commercialization.
- Encourage cross-sector collaboration, particularly with private startups and global partners.
- Focus on retaining and attracting AI talent, including Korean researchers and developers from overseas.
The stakes are high. If the strategy delivers, South Korea could leapfrog into the AI elite. If not, it risks falling behind in a race where delay means irrelevance.
