South Korea boosts AI funding to strengthen global competitiveness

The government is offering up to 2 billion won annually to attract top global AI researchers.

South Korea has approved a 1.9 trillion won supplementary budget aimed at AI sector competitiveness.

South Korea’s National Assembly has approved a supplementary budget of 1.9067 trillion won for the AI sector, increasing the government’s original proposal by 61.8 billion won to strengthen the country’s global AI competitiveness. The Ministry of Science and ICT said the funding would be used to swiftly advance initiatives aimed at strengthening national AI competitiveness and positioning the country among the world’s top three AI leaders.

The funding is focused on three priorities: expanding AI computing infrastructure, advancing next-generation AI models and developing world-class talent. The largest allocation, 1.6341 trillion won, will be used to secure 10,000 advanced GPUs by the end of the year, alongside the leasing of a further 3,000 GPUs from the private sector to expand access.

A further 213.6 billion has been allocated to the proposed World Best LLM Project, under which five leading domestic AI teams will receive up to three years of support, including access to GPUs, high-quality datasets and specialist personnel. The Ministry will also launch the AI Pathfinder Project, offering grants of up to 2 billion won annually to attract leading international AI researchers.

Science and ICT Minister Yoo Sang-im said the funding comes at a pivotal moment as countries intensify competition for AI leadership. He said the government would pursue an all-out effort spanning advanced technology, talent development and AI adoption to establish South Korea among the world’s top three AI powers.

Why does it matter?

The supplementary budget demonstrates how governments are increasingly treating AI as strategic national infrastructure rather than simply an innovation policy issue. By investing simultaneously in computing capacity, foundation models and talent, South Korea is seeking to strengthen its long-term competitiveness in a global race increasingly defined by access to GPUs and skilled researchers.

The initiative also highlights that leadership in AI depends on more than financial investment alone. Competition for advanced chips and world-class talent has become increasingly intense, meaning the success of South Korea’s strategy will depend on how quickly it can translate funding into deployable infrastructure, cutting-edge research and commercial innovation.

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