TLDRs;
- South Korea targets 500 AI projects by 2030 to drive economic growth and global competitiveness.
- Key companies like Samsung, Hyundai, and LG will spearhead industry-wide AI applications.
- The government aims to raise productivity, cut carbon emissions, and counter slowing economic growth.
- A ₩100 trillion fund will support AI innovation across technology, manufacturing, and culture.
South Korea is ramping up efforts to position itself as a global artificial intelligence (AI) powerhouse, unveiling a sweeping plan to launch over 500 AI-driven projects by 2030.
The initiative, announced by Industry Minister Kim Jung-kwan, reflects Seoul’s growing commitment to embedding AI technologies across its economic landscape.
The program brings together the nation’s industrial heavyweights, Samsung Electronics, LG Energy Solution, HD Hyundai, and Hyundai Motor, to jointly develop AI applications that transform manufacturing, logistics, and energy sectors. Early projects already in motion include AI systems to improve semiconductor quality control, optimize ship maintenance, and streamline automotive production lines.
The government says the strategy aims to enhance productivity, reduce costs, and minimize carbon emissions through smarter, data-driven industrial operations.
A Vision Rooted in Economic Necessity
The announcement comes as President Lee Jae-myung’s administration doubles down on AI as a key lever to revive South Korea’s slowing economic growth. In August, Seoul identified AI investment as a top national policy priority, following reduced GDP forecasts and continued trade turbulence linked to U.S. tariffs.
In its first biannual economic policy plan under Lee’s government, the Finance Ministry confirmed a major shift toward technology-led recovery. The policy outlines 30 flagship AI and innovation projects, spanning robotics, autonomous vehicles, drones, smart factories, semiconductors, and even cultural exports like K-beauty and K-food.
“The grand transformation into AI is the only way out of growth declines resulting from a population shock,” the ministry said, pointing to South Korea’s record-low birthrate as a critical long-term challenge.
To support the plan, the government will create a ₩100 trillion (US$71.56 billion) fund, co-financed with private sector players, to invest in strategic AI sectors.
Corporate Partners Take the Lead
Major conglomerates are already aligning their R&D priorities with Seoul’s AI roadmap. Samsung is advancing AI-powered semiconductor design tools, while Hyundai Motor Group is developing flexible AI-driven manufacturing systems. HD Hyundai, a key player in maritime engineering, is integrating predictive AI analytics into ship maintenance to enhance safety and reduce downtime.
Industry Minister Kim highlighted the synergy between public policy and private innovation as essential to achieving South Korea’s 2030 AI goals.
“AI is not just a tool for efficiency, it’s the foundation of a new industrial paradigm,” he said during a strategy meeting attended by top executives from major Korean corporations.
Currently, 102 AI projects are already underway across multiple sectors, with hundreds more expected to launch over the next five years.
Global Leadership and Long-Term Outlook
The government’s target is to make South Korea one of the world’s top three AI nations by the end of the decade. Policymakers believe that widespread AI adoption could raise the nation’s potential growth rate from 2% to 3%, countering long-term demographic and economic pressures.
Despite short-term headwinds, including declining exports and tariff uncertainty, South Korea’s proactive fiscal strategy reflects a broader ambition: to lead the global AI race while redefining the future of industrial productivity.
As the world’s fourth-largest economy transitions toward automation and intelligent systems, Seoul’s all-in AI strategy may well determine its standing in the next era of global technological competition.
