A major administrative overhaul to make governance smarter, faster, and citizen-focused
South Korea’s Ministry of the Interior and Safety (MOIS) has announced a sweeping reorganization aimed at embedding artificial intelligence (AI) into the country’s public sector operations. At the heart of this plan is the creation of a new department — the “AI Government Bureau” — tasked with accelerating the government’s AI transformation and enhancing administrative efficiency.
The new bureau will replace the existing Digital Government Innovation Bureau, which has long overseen South Korea’s e-government policies. According to the ministry, this transition is a strategic step toward establishing an “AI-first government,” capable of using data-driven systems to enhance policy formulation, automate services, and improve responsiveness to national challenges.
Rebuilding Trust and Infrastructure After Digital Outage
The decision comes in the wake of a massive government network outage in September, triggered by a fire at the National Computing and Information Agency. The incident, which temporarily disrupted key public services, exposed vulnerabilities in the nation’s digital infrastructure. Although around 95% of systems have since been restored, the event underscored the need for AI-powered resilience mechanisms in public administration.
Minister Yoon Ho-jung described the reorganization as a “reset” for Korea’s digital governance strategy.
“The government aims to evolve into one that incorporates future technologies into its functions,” Yoon said. “AI will play a key role in strengthening recovery systems during unexpected outages and in advancing digital public services.”
The AI Government Bureau will lead efforts to apply machine learning and automation to risk management, cybersecurity, and predictive maintenance of public infrastructure — areas that gained urgency after the September crisis.
A Broader Overhaul for a Future-Ready Ministry
The establishment of the AI Government Bureau is part of a broader restructuring, set to take effect by the end of November 2025. The MOIS will reorganize its structure from six to seven bureaus, introducing three new offices:
- AI Government Bureau – spearheading digital transformation and AI integration.
- Local Innovation Office – empowering residents to participate directly in policymaking.
- Social Solidarity Economy Bureau – fostering inclusive, community-based economic ecosystems.
This organizational reform will also include a new Basic Social Policy Division, which will address challenges such as regional decline and population imbalances.
Empowering Local Governance and Citizen Participation
Minister Yoon emphasized that the reorganization reflects the ministry’s three guiding values: participation, solidarity, and innovation. The Local Innovation Office will focus on building frameworks for direct resident participation, institutionalizing Residents’ Self-Governing Councils that allow communities to make decisions about local policies and budgets.
“We will create a local government centered on residents,” Yoon said. “By strengthening participation, we aim to restore sovereignty to local communities.”
This move reflects a growing global trend in governance — decentralizing decision-making and leveraging local insights to improve policy outcomes.
Building a Social Solidarity Economy
Another key pillar of the reform is the creation of the Social Solidarity Economy Bureau, which will promote regional economic resilience through community-oriented enterprises. The bureau will support cooperatives, village businesses, and social enterprises, and launch pilot initiatives such as “Residents’ Happiness Villages” — projects integrating local jobs, housing, and welfare systems.
Yoon stated that the ministry plans to enact the Basic Act on Social Solidarity Economy to establish a stable legal foundation for such initiatives.
“The solidarity economy is not just about growth — it’s about restoring the strength of communities and ensuring balanced national development,” Yoon said.
The move aligns with Seoul’s broader agenda of sustainable regional development and economic inclusion.
AI Governance as a National Imperative
The launch of the AI Government Bureau coincides with South Korea’s national push toward an AI-driven economy. Earlier this week, President Lee Jae-myung announced that 10.1 trillion won ($6.98 billion) will be allocated in the 2026 national budget to accelerate AI integration across industries and government functions.
Minister Yoon noted that every ministry will play a role in this AI transformation, but the MOIS will act as the central coordinating body for AI adoption in public administration.
“The transition to AI is not confined to one department,” he said. “Our goal is to create a government that doesn’t just use AI but truly embodies it.”
This approach mirrors the AI-driven public innovation models already being piloted in countries like Singapore and Estonia, signaling Seoul’s determination to position itself among global leaders in AI governance.
Strengthening Data Resilience and Security
To build trust in AI-enabled governance, the MOIS will overhaul its national data infrastructure. Yoon said the ministry will introduce redundancy systems and AI-based disaster recovery frameworks to protect critical databases and ensure service continuity during crises.
The ministry also intends to strengthen collaboration with the National Police Agency, National Fire Agency, and the soon-to-be-launched Serious Crimes Investigation Agency to improve national safety systems. Through the adoption of AI tools, these agencies will be able to analyze crime patterns, predict emergencies, and coordinate faster responses, ultimately enhancing efficiency and communication across departments.
A Government for the AI Era
The creation of the AI Government Bureau marks a turning point in how South Korea envisions the role of technology in governance. It represents a shift from simply digitizing administrative processes to embedding intelligence and adaptability into the government’s core functions.
If implemented successfully, the initiative could make South Korea one of the first countries to establish a dedicated AI-led governance framework, serving as a global case study in how artificial intelligence can enhance transparency, efficiency, and citizen engagement in the public sector.
“This reform is about more than technology,” Yoon concluded. “It’s about making government smarter, faster, and closer to the people.”
