From global giants to nimble startups, South Korea is making bold moves in artificial intelligence. At the heart of this push is a strategy to build sovereign AI that rivals OpenAI, Google, and Anthropic—models tailored to its language, culture, and national interests.
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Last month, Seoul unveiled its most ambitious AI initiative yet, pledging ₩530 billion (about $390 million) to support five local companies in developing large-scale foundational models. The effort highlights South Korea’s determination to reduce reliance on foreign AI, strengthen security, and maintain tighter control over its own data.
The Five Players Chosen To Compete
The Ministry of Science and ICT selected five organizations to lead this sovereign AI charge:
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LG AI Research
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SK Telecom
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Naver Cloud
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NC AI
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Upstage (startup)
Every six months, their progress will be reviewed. Underperformers risk being cut, while frontrunners will receive continued funding until only two remain to carry South Korea’s AI mission forward.
How South Korea’s AI Strategy Differs From OpenAI And Google
What makes this initiative stand out is its focus on homegrown innovation. Instead of depending on U.S. or European-developed models, South Korea is building AI systems deeply aligned with Korean language, culture, and governance needs. This localized approach could give the country an edge in areas where global models fall short.
Spotlight On LG AI Research’s Exaone
LG AI Research, part of the LG Group, is betting big on its Exaone 4.0 model. Unlike traditional LLMs, Exaone combines broad language processing with advanced reasoning capabilities, an evolution of the earlier Exaone Deep model. This hybrid reasoning approach positions LG to compete directly with global leaders.
South Korea’s strategy isn’t just about catching up with OpenAI or Google—it’s about reshaping the AI race. By nurturing sovereign AI, the country is:
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Securing its data sovereignty
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Reducing dependency on foreign tech
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Building national resilience in the AI era
If successful, this playbook could inspire other nations looking to balance innovation with independence.
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