South Korea expands AI diplomacy through new development package
New AI development strategy sees South Korea support digital transformation across developing economies.
South Korea has unveiled the ‘K-AI Package’, a development cooperation strategy that combines AI infrastructure, digital capacity development and development finance to support AI adoption in developing countries while expanding international opportunities for Korean technology companies.
The strategy was presented on 20 July during a ministerial meeting on global economic affairs chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol.
The initiative combines AI solutions, AI data centres and renewable energy facilities with infrastructure projects financed through the Economic Development Cooperation Fund. It covers seven sectors, including water management, healthcare, energy, transport, agriculture, culture and education, with projects ranging from AI-supported dam management and medical diagnosis systems to smart farming, renewable energy technologies and AI education programmes.
South Korea plans to integrate the package with existing development cooperation mechanisms, including the Knowledge Sharing Program, trust funds, development finance and joint financing with multilateral development banks.
Alongside infrastructure projects, the government will support partner countries in developing AI legislation, standards and institutions while investing in technical education, workforce training and local capacity development.
From the second half of 2026, South Korea will identify partner countries’ priorities and propose tailored K-AI projects before moving to implementation. AI will also become a priority under the Knowledge Sharing Program in 2027, while a proposed global AI hub will support technology adoption and skills development in emerging economies.
Why does it matter?
The K-AI Package illustrates how development cooperation is becoming an increasingly important instrument of AI diplomacy. Rather than focusing solely on technology exports, South Korea is combining infrastructure, policy advice, skills development and financing to help partner countries build AI capacity.
The initiative also reflects growing international competition to shape the global AI ecosystem through development partnerships. By linking development assistance with industrial strategy, South Korea aims to expand opportunities for its AI industry while strengthening long-term digital cooperation with emerging economies.
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