South Korea is making significant strides to solidify its position as a global leader in artificial intelligence. Recognizing AI as a "game changer" for the modern economy, the nation is strategically investing in infrastructure, talent, and research to become one of the top three AI powerhouses in the world. A key component of this strategy is the acquisition and deployment of a 10,000 GPU powerhouse.
The South Korean government, led by President Lee Jae-myung, has consistently emphasized the importance of AI, earmarking substantial funds for its advancement. The Ministry of Science and ICT (MSIT) is spearheading a plan to invest over 16 trillion won (approximately $11.56 billion) over the next five years across various AI-related initiatives. A significant portion of this investment is dedicated to securing advanced GPUs and building a public-access AI infrastructure, creating a nationwide "AI highway."
The acquisition of 10,000 high-performance GPUs is a critical step in this direction. Acting President Choi Sang-mok highlighted the intensifying global competition in AI, emphasizing that it has evolved beyond corporate rivalries into a contest between national innovation ecosystems. The government aims to secure these GPUs through public-private partnerships, accelerating the launch of the National AI Computing Center.
GPUs are essential for AI model development, with requirements depending on processing power, dataset size, model complexity, and training duration. While the specific GPU models are yet to be finalized, the government plans to strategically allocate these resources, primarily through the National AI Computing Center, to meet the demands of academia, industry, and national R&D projects. User costs for GPU resources will be kept at reasonable levels, with detailed pricing schemes to be determined by September.
Beyond GPUs, South Korea is making significant investments in AI data centers. SK Group, in partnership with Amazon Web Services (AWS), plans to build South Korea's largest AI data center in Ulsan. The construction is slated to begin in August, and the facility will eventually house 60,000 GPUs with a power capacity of 100 megawatts, making it the country's first AI infrastructure of such scale. AWS is expected to invest $4 billion in the project, with SK Group subsidiaries contributing further resources. The data center's proximity to SK Gas's LNG combined-cycle power plant ensures stable power delivery, critical for AI infrastructure. SK Telecom plans to invest 3.4 trillion won ($2.5 billion) in AI-related initiatives by 2028, with a significant portion allocated to the data center project. SK Group Chairman Chey Tae-won aims to expand the data center's capacity to one gigawatt in the future, transforming it into a global AI hub.
Recognizing the importance of talent, South Korea is also investing heavily in nurturing AI experts. The government plans to invest 1.28 trillion won in securing AI talent, supporting emerging researchers, and fostering practical AI professionals.
To ensure responsible AI development, South Korea passed the "AI Basic Act" in December 2024, set to take effect in January 2026. This law aims to boost national competitiveness in AI while addressing AI-related societal issues. It establishes legal grounds for a national AI control tower, an AI safety institute, and various governmental initiatives in R&D, standardization, and policies.
Despite these ambitious plans, South Korea faces challenges, including a potential talent drain. The Korea Chamber of Commerce and Industry (KCCI) reported an increase in Korean science and engineering professionals working abroad, highlighting the need for strategies to retain AI talent.
South Korea's strategic AI investments, particularly the 10,000 GPU powerhouse, signify a determined effort to secure technological leadership. By focusing on infrastructure, talent, and ethical development, South Korea aims to become a global AI leader and drive economic growth through innovation.
