South Korea is ramping up efforts in AI development, launching a ₩530 billion (approx. $390 million) initiative to foster homegrown large language models (LLMs) from five local firms—LG AI Research, SK Telecom, Naver Cloud, NC AI, and Upstage. This initiative aims to reduce dependence on foreign AI technologies, improving national security and data control. Each company brings unique strengths; for instance, LG’s Exaone 4.0 focuses on efficiency and real-world applications, while SK Telecom’s A.X model optimizes Korean language processing. Naver Cloud’s HyperCLOVA X integrates AI into existing services like search and shopping, leveraging vast datasets. Upstage, the only startup among the contenders, aims for high performance with its 31 billion-parameter Solar Pro 2 model, targeting industry-specific applications. The government will evaluate progress bi-annually, funding only the top-performing models, as South Korea positions itself to compete with global giants like OpenAI and Google in the AI landscape.
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