TLDRs;
- South Korea launches National AI Strategy Committee, led by President Lee Jae Myung, to coordinate policy and private-sector collaboration.
- Government commits 100 trillion won ($72 billion) in long-term AI investment, with $7.2 billion allocated for 2025 projects.
- New AI Transformation initiative will accelerate adoption across manufacturing, healthcare, defense, and public services.
- Demographic challenges, including a shrinking workforce, drive South Korea’s urgent push to embed AI across its economy.
South Korea has taken a major step in cementing its place as a global leader in artificial intelligence (AI) with the launch of the National Artificial Intelligence Strategy Committee, a body led directly by President Lee Jae Myung.
The committee is tasked with setting the country’s AI agenda, harmonizing government policy, and building strong collaboration with the private sector.
The new body comprises 34 private-sector members, including leading experts and executives in AI and related technologies. These members will work across specialized subcommittees focusing on infrastructure, data, applications, social adaptation, global cooperation, science, skills development, and defense. The diversity of representation signals Seoul’s intent to approach AI as not just a technological challenge, but a comprehensive national transformation.
Record-breaking AI investment plans
Alongside the committee’s launch, the government announced an ambitious $72 billion long-term investment in AI. For the upcoming year alone, the state budget earmarks 10.1 trillion won ($7.2 billion) toward AI projects, representing a 30% increase over last year.
One of the centerpiece initiatives is the AI Transformation program, which will receive 4.5 trillion won ($3.2 billion). This program is designed to accelerate AI adoption across industries ranging from manufacturing to healthcare, boosting efficiency and addressing productivity concerns tied to South Korea’s aging population.
“This is not simply about adopting new technology, it is about restructuring our industries and building sustainable growth,” President Lee emphasized during the committee’s inaugural meeting.
From reactive to proactive AI strategy
South Korea’s AI ambitions trace back to 2016, when the shock of Google DeepMind’s AlphaGo victory over Go champion Lee Sedol prompted Seoul to allocate $860 million toward AI research.
What began as a reactive response to technological disruption has since evolved into a forward-looking economic plan.
Today, the government has identified 30 flagship AI transformation projects spanning public services, healthcare, manufacturing, and defense. This signals a shift from limited research-driven initiatives to comprehensive national planning, aimed at positioning AI at the very center of South Korea’s competitiveness.
Demographics drive urgency in AI adoption
The urgency behind this record AI funding lies in South Korea’s demographic challenges. With one of the world’s lowest birthrates and a rapidly aging population, the country faces projected declines in GDP growth. Policymakers see AI as essential to maintaining productivity and economic resilience.
President Lee highlighted inclusive AI access as a guiding principle, ensuring benefits extend beyond tech companies to the broader workforce. By embedding AI into multiple sectors, the government hopes to compensate for the shrinking labor force while maintaining global competitiveness.
The committee’s “one team” public-private approach, combined with regulatory reform to make laws AI-friendly, reflects an understanding that AI must be a national project, not just a niche industry.
