[Edaily Kim Hyun-ah Reporter Han Gwang-beom] Although reports have emerged that the government plans to invest 5 trillion won using excess tax revenue from the semiconductor industry and secure 10,000 GPUs to develop its own artificial intelligence (AI), the Ministry of Science and ICT drew a line, stating, “Nothing has been finalized at the government level.”

However, it has been confirmed that a consensus has formed within the government that a strategy of “selection and concentration” is needed—moving away from the existing approach of distributed support—to compete in the frontier (cutting-edge) AI race with the United States and China.

Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon also stated at a press conference last month marking the first anniversary of the government’s inauguration, “We have moved beyond AI specialized for manufacturing and industry; it is now time to take on frontier AI models on par with those of the U.S. and China,” adding, “More aggressive investment in GPUs and AI infrastructure is needed.”

On the 2nd, a high-ranking official from the Ministry of Science and ICT told E-Daily in a phone interview regarding the plans reported that day—namely, “investing 5 trillion won in excess semiconductor tax revenue” and “providing 10,000 GPUs”—that “while it is true that the government is reviewing various possibilities internally, nothing has been decided yet.”

The Ministry of Planning and Budget also stated, “This matter has not yet been decided. Please exercise caution in your reporting.”

“Large-Scale Investment in Frontier AI Inevitable”

However, both within and outside the Ministry of Science and ICT, there is a growing consensus that existing strategies must be revised to respond to the changing environment, in which AI is viewed as a national strategic asset.

In particular, the U.S. government’s temporary blocking and subsequent unblocking of domestic access to Anthropic’s top-tier AI model, “Mitos 5,” was seen as a case that demonstrated the importance of AI sovereignty.

Consequently, there is a shared understanding among the government, industry, and academia that South Korea must also secure its own cutting-edge AI, and that this will require investments in GPUs and infrastructure on a much larger scale than currently seen.

However, the source and scale of investment have not yet been finalized in a government proposal. An official from the Ministry of Science and ICT explained, “The method of securing funds and the scale of investment are matters that require consultation with fiscal authorities and the Office of the President; we are currently in the stage of reviewing various options.”

Analysts both within and outside the government note that the need for large-scale national investment is growing as the U.S. tightens AI export controls and competition among global Big Tech companies in the field of super-large AI accelerates.

Deputy Prime Minister Bae also emphasized at a press briefing, “South Korea’s AI budget does not even match the investment scale of a single U.S. big tech company,” adding, “If we make aggressive investments in GPUs and AI infrastructure, South Korea can certainly take on the challenge of frontier AI.”

Strategic Revision of the “Dokpamo” Project Inevitable

The Ministry of Science and ICT is also reviewing ways to align the ongoing “Dokpamo” (Independent AI Foundation Model) project with the new Frontier AI strategy.

An official from the Ministry of Science and ICT said, “We are continuing to discuss whether the existing approach of distributing resources among multiple companies is appropriate or if more concentrated support is needed,” adding, “How to link the Dokpamo project with future Frontier AI projects is also under review.”

The official added, “The key is not to nurture specific companies, but to determine how to consolidate national-level AI capabilities,” noting, “We are exploring various ways to efficiently pool national resources such as talent, GPUs, and data.”

Possible Changes to the ‘4→3→2’ Plan

Based on these remarks, it appears increasingly likely that the original plan—which called for narrowing down the current participants in the Dokpamo project ( LG Corp.(003550) AI Research Institute, Upstage, SKTelecom(017670), and Motif Technologies) to three companies by August and two by year-end, with each receiving 2,000 GPUs next year—will be partially adjusted.

There is also speculation that, after the three companies to receive support in August are selected, a separate national project for Frontier AI development will be launched by the end of the year, and that the initiative will be reorganized into a national consortium involving not only companies but also universities and government-funded research institutes.

The government explained that while the strategic direction of developing Frontier AI is clear, specific policies—such as whether to utilize excess tax revenue, the scale of investment, the number of GPUs to be secured, and the method for reorganizing the DOKPAMO—will be finalized following consultations among relevant ministries.