South Korea targets stronger AI capabilities through cloud expansion
Government support for AI infrastructure will include tax incentives and easing regulations for cloud companies.
South Korea plans to accelerate the growth of its private cloud industry to enhance competitiveness in AI. The Ministry of Science and ICT outlined a strategy to double the local cloud market to 10 trillion won (£6 billion) by 2027 through partnerships with global companies.
The government acknowledged that South Korea trails over a year behind global cloud leaders, with underdeveloped AI infrastructure. Key initiatives include encouraging the use of private cloud systems across public sectors, such as education and defence, and easing regulations to facilitate the transition. Incentives such as expanded tax benefits are also planned for AI and cloud enterprises.
A national AI computing centre with supercomputer capabilities will be established to further bolster infrastructure. In addition, an AI innovation fund will launch with an initial government investment of 45 billion won (£27 million) in 2025, encouraging private-sector contributions to the cloud ecosystem’s growth.
Plans are also underway for an AI safety research institute under the Electronics and Telecommunications Research Institute. This initiative follows Seoul’s AI safety summit earlier this year, where global leaders agreed on collaborative efforts to promote safe and inclusive AI development.
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