Singapore, March 2 (NationPress) President Lee Jae Myung announced on Monday that South Korea aims to establish a global investment fund in Singapore by 2030, targeting an influx of $300 million into startups and the artificial intelligence (AI) sector.

This announcement was made during the AI Connect Summit in Singapore, where officials from both government and private sectors, alongside AI experts, congregated to explore collaborative research and investment opportunities, as reported by the Yonhap news agency.

"We are currently experiencing a significant transformation in society propelled by AI," Lee stated. "In the face of these changes, it is essential for South Korea and Singapore—both recognized for their outstanding AI expertise—to collaborate."

During his state visit, which began on Sunday, President Lee participated in a bilateral summit with Singaporean Prime Minister Lawrence Wong.

Recognizing that the global AI landscape is predominantly dominated by the United States and China, Lee expressed his aspiration for South Korea and Singapore, often viewed as secondary players, to carve a niche in areas such as AI manufacturing.

"If both nations establish clear objectives and work together to address each other’s shortcomings, I believe they can excel in specific fields," Lee emphasized. "They could enhance their competitiveness in human-centric research and innovative applications."

AI is a crucial area of collaboration for these two technological powerhouses in Asia. South Korea boasts strengths in semiconductors, data center infrastructure, and AI manufacturing, while Singapore leads in AI governance and regulation, serving as a Southeast Asian hub for AI data.

Lee proposed that the partnership in AI should advance from mere technology exchanges to a "strategic industrial alliance" aimed at exploring new AI-driven markets and positioning both nations as "Asia's premier innovation hub."

"The Korean government will facilitate significant cooperation through the AI Cooperation Framework," he noted, adding that Seoul plans to establish a $300 million "Korea Venture Capital Corporation (K-VCC) global fund by 2030."

As part of this initiative, the Ministry of SMEs and Startups revealed plans to launch the government's inaugural offshore global fund in Singapore in the latter half of this year, aiming to secure $300 million by 2030.

The ministry anticipates that this fund will focus on investing in promising AI startups in both countries, while also serving as a conduit connecting global investors with innovative startups.

He committed to supporting cross-border joint research to develop AI technologies that address urgent challenges and to initiate collaborative projects and exchange programs among researchers next year.

In line with this, the Ministry of Science and ICT announced it will introduce an international joint research initiative worth 50 billion won (approximately US$34.2 million) in the AI and digital sectors over five years starting in 2027, prioritizing projects involving Singapore.