South Korea Launches National AI Model to Compete with US and China

Friday, Aug 8, 2025 4:58 am ET2min read

South Korea has launched a national AI model project, tasking top companies and startups to develop the model using domestic technology. The project aims to create a self-sufficient AI industry and position South Korea as an alternative to China and the US. Five consortia, led by SK Telecom, LG, and Naver, will develop the models using technologies from semiconductors to software. The initiative aims to leverage South Korea's strategic position in AI technologies, including high-bandwidth memory, data centers, and chip manufacturing.

South Korea has initiated a groundbreaking national AI model project, aiming to establish a self-sufficient AI industry and position the country as a global alternative to China and the United States. The project, titled the "Independent AI Foundation Model Project," involves five consortia led by top companies and startups, leveraging South Korea's strategic position in AI technologies.

The Ministry of Science and ICT announced the selection of five elite teams, including Naver Cloud, Upstage, SK Telecom, NC AI, and LG AI Research, to participate in the project [1]. These teams will develop AI models using domestic technology, encompassing semiconductors to software. The initiative is designed to create a national representative AI model that can be utilized both domestically and internationally.

Naver Cloud, one of the selected finalists, has formed a consortium with Naver, Silicon Valley video multimodal AI startup Twelve Labs, and leading domestic universities and research institutions. The consortium aims to develop an "Omni Foundation Model" that can understand and generate heterogeneous data such as text, images, audio, and video. Naver Cloud possesses AI full-stack capabilities, enabling it to perform the entire AI technology development and service implementation process [1].

SK Telecom, another participant, has formed a consortium with game companies Krafton, 42dot, Rebellions, Liner, and SelectStar. The goal is to implement a full-stack AI based on independent technology and open-source the developed models to various companies in the domestic AI ecosystem. The consortium plans to challenge the development of a large-scale AI model that surpasses the scale of existing domestic LLMs and implement high-performance, high-efficiency AI services [1].

NC AI, the artificial intelligence (AI) specialist subsidiary of NCSoft, has been selected as a finalist for the project. NC AI aims to develop a foundation model with performance at least 95% comparable to global AI models released within the past six months. The consortium plans to support industrial AI transformation and contribute to the AI ecosystem by connecting multimodal cognitive and generative technologies with public government services [1].

The project aims to foster a self-sufficient AI industry in South Korea by leveraging its strategic position in AI technologies, including high-bandwidth memory, data centers, and chip manufacturing. The selected consortia will receive support worth 200 billion won, including high-performance graphics processing units (GPUs), data, and labor costs.

References:
[1] https://www.businesskorea.co.kr/news/articleView.html?idxno=248777

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