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South Korea Unveils Plan to Develop Its Own ChatGPT with $700M AI Investment

Hyun Ki by Hyun Ki
PUBLISHED: February 20, 2025 UPDATED: February 21, 2025
in AI, South Korea, Tech Industry
0
South Korea Unveils Plan to Develop Its Own ChatGPT with $700M AI Investment

South Korea has unveiled plans to develop its own version of ChatGPT, with full government backing for artificial intelligence (AI) research and development. Acting President Choi Sang-mok announced the initiative during a high-level committee meeting focused on strengthening AI capabilities. The committee was established to enhance cooperation between the public and private sectors. 

As part of this strategy, the government will assemble a “national AI team” to lead the creation of an advanced large language model (LLM) and invest over 1 trillion won ($700 million) in developing key technologies for artificial general intelligence (AGI). The government will also establish a national AI computing center and acquire an additional 8,000 GPUs by mid-2026. Authorities have pledged tax incentives for AI and cloud technology development to encourage private-sector investment in AI infrastructure.

With global competition in AI intensifying, particularly between the U.S. and China, South Korea is accelerating efforts to establish itself as a major player in the field.

Choi highlighted that the global AI race has reached a crucial stage, with leading nations making massive investments in AI infrastructure. He cited China’s DeepSeek, a large-scale AI model developed by a startup, as both a potential challenge and an opportunity for South Korea, which is still catching up in the sector. To strengthen its position, the government will fully support the development of advanced AI models, ensuring they can compete on a global scale.

A key aspect of this initiative is securing 10,000 high-performance graphics processing units (GPUs) within the year, a significant leap from the 2,000 GPUs available as of late 2023. These GPUs are essential for training AI models, and the government plans to provide both hardware and funding to accelerate AI innovation. Concerns over data security have also grown, particularly following reports that DeepSeek transmitted user data to a third party linked to ByteDance, the Chinese owner of TikTok.

During the third National AI Committee meeting on February 20, the government outlined plans to develop AI models, attract top AI talent, and build a strong AI infrastructure. Choi stressed the importance of creating an AI system capable of competing globally, introducing the “World’s Best LLM” project. Under this initiative, South Korea’s leading AI teams will receive extensive GPU resources and research funding to develop a homegrown ChatGPT-style model.

The government will launch an AI model-sharing system to further drive AI advancements, allowing both public and private sectors to access and utilize AI technologies for various applications. Additionally, a 1 trillion won ($700 million) R&D initiative will focus on advancing artificial general intelligence (AGI). As part of efforts to nurture talent, South Korea will host a global AI challenge for young researchers and expand support for domestic and international AI experts.

Alongside technological advancements, the government is prioritizing data security. South Korea’s regulator had already suspended new downloads of DeepSeek due to concerns over its data collection practices. Recent findings confirmed potential user data leaks, raising legal concerns under South Korean law, which mandates explicit user consent for third-party data sharing. Meanwhile, the government is also working to boost AI-driven innovation by launching a 3 trillion won ($2.2 billion) AI startup fund by 2027, supporting emerging AI companies and fostering collaboration with major corporations.

Tags: Gen AISouth Korea

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