[Edaily Reporter Han Kwangbeom ] Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon raised his voice in frustration when pressed by an opposition lawmaker regarding the government’s 5 trillion won Frontier Artificial Intelligence (AI) development project. He pushed back after being repeatedly asked to explain the project’s background and submit official approval documents, stating that he had already explained the matter several times.
During the comprehensive parliamentary audit of the National Assembly’s Science, Technology, Information, and Broadcasting Committee on the 23rd, Deputy Prime Minister Bae raised his voice when Rep. Park Jeong-ha of the People Power Party repeatedly demanded approval documents illustrating the decision-making process for the Frontier AI project, saying, “I’ve given you the answer several times, but aren’t you just continuing to bring up other issues?”
When Rep. Park retorted, “What other things have I been talking about?” Deputy Prime Minister Bae countered, “I explained that we started in April because of ‘(Claude) Mitos,’ and as we began discussions with the fiscal authorities in May, I submitted detailed documentation outlining those processes.” He then added, “I will go there in person next week to explain it once again.”
The exchange between the two erupted when Rep. Park demanded the submission of official draft and approval documents for the Frontier AI project. Rep. Park emphasized, “Even if 50 trillion won were invested instead of 5 trillion, it must be executed transparently, soundly, and appropriately,” stressing that his concern was not the necessity of the project itself but rather the transparency of the budget allocation and policy-making processes. In particular, he pointed out that the materials submitted by the government were simply a compilation of expert discussions and explanatory documents from the fiscal authorities, and thus differed from official approval documents that would allow for verification of the policy-making process.
◇“Who Decided on the 5 Trillion Won Project?”… Demand for Official Approval Documents
Presenting a video of the July 13 Fiscal Strategy Meeting, Rep. Park argued that while Deputy Prime Minister Bae explained the necessity of Frontier AI development at the time, it was difficult to verify the specific decision-making process behind the project. He asserted that even if one accepts the explanation that the project was not pursued under a direct order from President Lee Jae-myung, it must still be clarified what discussions took place among the Ministry of Science and ICT, the Policy Office of the Presidential Office, and the fiscal authorities that led to the decision.
In response, Deputy Prime Minister Bae reaffirmed his position that, regarding the draft budget proposal discussed with the fiscal authorities, he could not directly provide it because the fiscal authorities opposed its submission. He explained, “We are doing our best to provide the materials that can be disclosed,” adding, “Although we have tried to persuade the fiscal authorities on multiple occasions, it is difficult to submit the materials without the cooperation of the relevant ministries.” Instead, he stated that he would allow access to the relevant materials and provide additional explanations regarding the circumstances leading to the project’s implementation. As the heated exchange continued, Song Ki-heon, Chair of the Science, ICT, Broadcasting, and Communications Committee and a member of the Democratic Party, stepped in to mediate.
Deputy Prime Minister Bae stated, “Frontier AI is something we must secure as a national strategic asset,” adding that he had persuaded the fiscal authorities and consulted with relevant agencies, including the Office of the President, to plan the project and secure funding within a short timeframe. He also explained that, during the project’s preparation, discussions took place not only in official meetings but also through informal consultations, noting, “There were both very casual discussions and formal meetings.” He added that they had compiled as much of this discussion material as possible and submitted it to the National Assembly.
◇ Opposition Raises Allegations of Favoritism in “AI Daejang-dong”… Government: “Project Structure Not Finalized”
During a question-and-answer session that morning, Rep. Park raised concerns about the possibility of preferential treatment, likening the Frontier AI project to “AI Daejang-dong.” The allegation is that, in the process of pursuing this project—totaling 16 trillion won, including approximately 5 trillion won in government funding and 11 trillion won in private investment—benefits could be concentrated among specific interest groups.
However, Rep. Park clarified that these were hypotheses and speculations rather than confirmed facts, and demanded that the government transparently disclose the background of the project’s implementation and related materials to dispel these suspicions.
In response, Deputy Prime Minister Bae explained that while the government had initially considered supporting Frontier AI development by providing funding to the two companies ultimately selected for the Independent AI Foundation Model (DOKPAMO) project, it decided to proceed with a separate open call for proposals due to concerns that benefits might be concentrated on specific companies.
He also stated that, during this process, the project’s funding mechanism was changed from direct government grants to equity investment. However, he noted that specific details regarding the project’s structure—including whether to establish a public-private special-purpose company (SPC)—have not yet been decided. Regarding the rationale for expediting the Frontier AI project, Deputy Prime Minister Bae emphasized, “We felt we could not afford to miss this opportunity.”
