Upstage Enters Global AI Scene with Cutting-Edge Large Language Models

South Korea's AI startup Upstage has entered the global AI race with the development of large language models, competing with major players. This marks a significant step in the country's AI ambitions. Upstage provides tailored AI solutions, and its entry into the global market highlights South Korea's growing influence in the AI industry.

South Korea's AI startup Upstage has made significant strides in the global AI landscape by developing large language models (LLMs) that rival those of major players. This marks a substantial milestone in the country's AI ambitions, as reported by the Financial Times [1].

Upstage, based in Seoul, specializes in providing tailored B2B AI products, focusing on industry-specific performance rather than generic "wrapper" services. Its proprietary "Solar" LLM and advanced Optical Character Recognition (OCR) technology are integral to its AI solutions, serving enterprise needs from document processing to industry-specific applications. In July 2025, Upstage released Solar Pro 2, South Korea’s first large language model recognized as a frontier model [1].

Sung Kim, CEO of Upstage, stated, "American and Chinese LLMs used to be way out in front of everyone else, but that is no longer the case." He added, "We created a top-tier frontier LLM using only 10 percent of the number of AI chips that other companies are using, making us much more cost-efficient" [1].

Upstage is forging close partnerships with local chip innovators like Rebellions and Furiosa AI to power inference tasks and solidify Korea’s domestic AI infrastructure. The national government is also pushing a bold AI vision, pledging over $70 billion towards AI development and establishing an AI ministry [1].

KT Corp., a major South Korean mobile carrier, has also seen remarkable growth in its AI business. In the second quarter of 2025, KT Corp. posted a record-high quarterly operating profit exceeding 1 trillion won ($719 million), driven largely by a double-digit growth in its AI business [2].

KT Corp. is transforming into an AICT (AI and Information Technology) company, aiming to bolster traditional telecommunications services with IT and AI technologies. The company has formed AI partnerships with both Microsoft Corp. and Palantir Technologies Inc., and signed a strategic partnership with Amazon Web Services (AWS) to offer customized mobile and generative AI services for corporate customers [2].

The surge in foreign capital into Taiwan and South Korea's AI and semiconductor sectors in Q2 2025 highlights the growing importance of these markets. Foreign direct investment (FDI) in these sectors has surged to unprecedented levels, with Taiwan and South Korea attracting $7.78 billion and $4.52 billion, respectively, in July 2025 [3].

These markets are at the forefront of a new era driven by AI-driven ecosystems, where semiconductors serve as the nervous system of AI. The global AI revolution is reshaping the economic landscapes of Asia's most dynamic tech hubs, positioning Taiwan and South Korea as geopolitical assets [3].

References:
[1] https://seekingalpha.com/news/4482981-south-koreas-upstage-enters-global-ai-charts---report
[2] https://www.kedglobal.com/earnings/newsView/ked202508110012
[3] https://www.ainvest.com/news/foreign-capital-inflows-asian-tech-markets-era-ai-driven-growth-taiwan-south-korea-2508/