Is South Korea Really Spending $349 Million on AI Services in 2025?
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Synopsis
South Korea is making a major leap in AI innovation with a staggering $349.1 million investment this year. Including advancements in AI factories, autonomous vehicles, and smart technology, this initiative is set to elevate the nation’s manufacturing capabilities and position it as a leader in the AI sector. Discover the details behind this ambitious plan!
Key Takeaways
- South Korea's investment in AI development is significant for its industrial sector.
- Focus on AI factories, chips, and self-driving cars illustrates a commitment to innovation.
- Partnerships with companies like Naver highlight the global collaboration in AI.
- The investment is aimed at fostering new growth engines in manufacturing.
- Predictions in AI can enhance quality control in pharmaceuticals.
Seoul, May 28 (NationPress) South Korea is set to invest approximately 480 billion won ($349.1 million) this year to advance cutting-edge products and services centered on artificial intelligence (AI). These initiatives will encompass AI factories, AI chips, and autonomous vehicles, as stated by the industry ministry on Wednesday.
The Ministry of Trade, Industry and Energy indicated that this funding is intended to enhance the industrial implementation of AI, fostering new growth drivers and boosting the nation's manufacturing sector, according to reports from Yonhap news agency.
Specifically, the ministry plans to allocate 62.7 billion won for AI factory development, 21.6 billion won for AI chip innovations, and 120.6 billion won for self-driving technology advancements.
Additionally, 68 billion won is designated for advanced biotechnology projects, 29.6 billion won for smart robot development, and 13.8 billion won for improvements in display technologies.
The government also seeks to create foundational AI models that small and medium-sized enterprises can utilize for quality inspections, precision control, and various manufacturing tasks.
Moreover, there is a goal to produce AI models capable of forecasting and preventing impurity formation during the pharmaceutical manufacturing process in the bio industry.
The planned initiatives also include the development of essential components that influence AI capabilities, like AI semiconductors and sensors, as per the ministry’s statement.
As stated by the ministry, "With South Korea being the world’s fourth-largest manufacturing hub, the area with the greatest potential for leadership and competitive advantage in the global AI landscape is industrial AI." The ministry pledged to amplify investments in this domain.
In a related development, South Korean tech leader Naver announced on Wednesday that it has finalized a joint venture with Saudi Arabia's National Housing Company (NHC) to establish a digital twin platform in the Middle East.
The newly formed entity, Naver Innovation, is supported by a joint investment from Naver Cloud and NHC’s subsidiary, NHC Innovation.
This marks Naver's inaugural business operation under Naver Arabia, its dedicated branch for activities in the Middle East.
Naver Innovation will spearhead Naver's digital twin platform initiatives in Saudi Arabia, along with other smart city projects, which include developing a mapping application for public transportation.
Point of View
It's vital to recognize South Korea's strategic investment in AI as a significant step towards enhancing its industrial capabilities. With a focus on fostering innovation and developing essential AI technologies, this initiative stands poised to not only boost the national economy but also solidify South Korea's competitive edge in the global market.
NationPress
26/07/2025
Frequently Asked Questions
What is South Korea investing in for AI development?
South Korea is investing approximately 480 billion won ($349.1 million) in developing AI factories, AI chips, and self-driving cars, among other technologies.
How will this investment impact the manufacturing sector?
This investment aims to promote industrial use of AI, fostering new growth engines and advancing the country's manufacturing industry.
What specific projects are included in this investment?
The projects include AI factories, AI chip technology, autonomous driving technology, advanced bio projects, intelligent robots, and display technologies.
Is South Korea the only country investing in AI?
No, many countries are investing in AI technologies, but South Korea's focus on industrial AI positions it to gain a competitive advantage.
What role does Naver play in AI development?
Naver has established a joint venture with Saudi Arabia's National Housing Company to develop a digital twin platform, showcasing its commitment to AI innovation.
