South Korea has unveiled plans to establish a “National Artificial Intelligence (AI) Computing Center” by 2027, backed by a joint public-private investment of 2.5 trillion won (US$1.7 billion). The initiative, announced by the Ministry of Science and ICT on January 22, aims to enhance the country’s competitiveness in AI technology by creating a computing facility with a capacity of 1 exaflop.
The initiative comes at a time when South Korea’s AI technology ranking has seen a slight dip, from 89.1 in 2022 to 88.9 in 2023, while the United States holds a benchmark score of 100. The government aims to launch initial services for the AI center as soon as November this year, with the goal of full-scale operations by 2027. The center will be developed through a special purpose company (SPC), with the public sector holding a 51% stake and private companies controlling the remaining 49%.
The South Korean government plans to acquire advanced GPUs by the end of this year to support AI research and development ahead of the National AI Computing Center’s official launch in 2027.
By late 2023, South Korea had approximately 2,000 Nvidia H100 GPUs, while global giants like Meta and Microsoft each owned around 150,000 units.
To fund the development, the government will establish a special purpose company (SPC) in which the public sector will hold 51% and private companies 49%. Initial investments will total 400 billion won (US$278 million), with Korea Development Bank and IBK Industrial Bank of Korea each contributing up to 15% of the SPC’s shares.
The government also offers financial and policy support to incentivize private sector participation. A 200 billion won investment fund will support private companies and loan products, offering up to 2.5 trillion won in financing.
Furthermore, AI has been designated a national strategic technology, providing tax incentives under the Restriction of Special Taxation Act to promote further development. The Ministry of Economy and Finance has also established a special committee to guide the expansion of domestic AI semiconductor usage and ensure an adequate power supply for the center.
Given the high energy consumption of the GPUs required for AI computing, the Ministry of Trade, Industry, and Energy has pledged to expedite the necessary administrative processes, such as power system impact assessments.
Private companies are tasked with proposing solutions for the center’s power supply, while the government plans to launch AI computing services by 2025, aiming to address the growing demands in the technology sector. Acting President Choi Sang-mok emphasized the importance of this initiative, stating that the center is vital for South Korea’s technological leadership in the AI space.
Private operators interested in the AI Computing Center will undergo multiple evaluation stages, including technical assessments, policy reviews, and financial audits. However, the operators may be excluded from the final selection if key components like the power system impact assessments are not finalized before the financial review. The government plans to identify additional policy support and institutional measures for major projects during the first quarter of this year, aiming to present a comprehensive strategy for AI computing infrastructure development.
