Is there a solution for Korea in the era of AI transformation?

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Is there a solution for Korea in the era of AI transformation?

Published: 29 Apr. 2025, 00:02

Audio report: written by reporters, read by AI

Nam Young-sook

The author is a professor at Ewha Womans University Graduate School of International Studies.

The world is now locked in an intense competition for hegemony over AI technology, led by the United States and China. Recognizing that AI will determine national competitiveness, governments around the globe are pouring massive amounts of capital into securing leadership, rolling out a range of support measures.

For instance, the United States has announced a $500 billion project to build AI infrastructure. France has budgeted 109 billion euros. Japan, having drawn painful lessons from falling behind during the IT revolution, is aggressively entering the AI race with an announced investment plan of 10 trillion yen. Even the European Union — long perceived as a regulatory bulwark — has formalized AI investment plans totaling around 300 trillion won.

Korea, too, has set an ambitious goal of becoming one of the world’s top three AI powerhouses (AI G3) and is pursuing a range of initiatives. Currently, Korea ranks around sixth or seventh globally in AI competitiveness, competing with countries such as the United Kingdom, France, Canada, Germany, Japan and Singapore. However, compared to the frontrunners, the United States and China, Korea still faces a significant gap in research talent, computing resources and investment scale.

This picture taken on Jan. 23, 2023 in Toulouse, southwestern France, shows screens displaying the logos of Microsoft and OpenAI. [AFP/YONHAP]

How, then, can a nation with fewer resources and a smaller scale secure leadership in AI? The answer can be found both in the strategies of other AI-leading countries and in Korea’s own historical success as an IT powerhouse.

Ultimately, AI technological strength stems from people. China’s recent breakthrough with DeepSeek was the result of relentless R&D efforts by top-tier talent. Other leading nations have likewise made nation-level investments in research hubs and talent development. Canada, for example, concentrated on cultivating AI expertise during the so-called “AI winter” of the 1980s, establishing specialized research institutes that later propelled it to the forefront of deep learning technologies. The United Kingdom nurtured its AI sector through the Alan Turing Institute, established in 2015, which has become a national research hub. Backed by an annual budget of around 84 billion won and over 400 researchers, the institute specializes in AI applications in strategic sectors such as healthcare, the environment and defense, while leading collaboration across academia and industry.

The Deepseek logo is seen in this illustration taken on Jan. 29. [RETUERS/YONHAP]

Korea also launched a National AI Research Center last October to build a national AI ecosystem, backed by a five-year investment of 94.6 billion won. However, to establish itself as a true flagship national AI research hub, more aggressive investment is needed. Securing essential computing infrastructure — such as GPUs (graphics processing units) — is an urgent task. Like the Alan Turing Institute, Korea’s center must designate national strategic focus areas, deliver concrete research outcomes, and serve as a pivotal bridge linking academia, industry and research.

A screen advertising of Samsung Electronics' Galaxy S25 Ultra phone, with artificial intelligence capabilities, is seen at the Seoul Railway Station in central Seoul, Feb. 17. [AP/YONHAP]

Korea’s own experience with IT development offers additional lessons. Korea’s rise as an IT powerhouse was driven by a synergy between proactive, strategic government investment and bold, innovative action from the private sector. The cultivation of the semiconductor industry, commercialization of CDMA mobile technology, construction of high-speed internet networks and the world’s first rollout of 5G are hallmark examples. Now, moving beyond IT leadership to AI leadership, the government's role has become even more critical. Bold investment in leading R&D and key infrastructure such as GPUs and data centers must serve as the priming engine to drive private-sector creativity and market dynamism.

Just as Korea exported its e-government systems to developing countries during the internet era, it can now position itself as a third alternative in the global AI market — one not dependent on U.S. or Chinese hegemony. By providing trustworthy AI technologies and services to countries across Asia, the Middle East, Latin America and Africa, Korea has every opportunity to write a new success story.

We are standing at the center of a grand transformation, where technological hegemony and the global order are being reshaped. AI is not only a new growth engine — it is a critical strategic asset for national security, encompassing economic security, defense, cybersecurity, and information sovereignty. Securing technological leadership and building a robust AI ecosystem are vital to Korea’s survival and future competitiveness. In the next administration’s national development vision, AI must stand at the very heart of national strategy. In a race where time and speed are everything, Korea can no longer afford to waste a single moment.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.