South Korea proposes $3.5 billion frontier AI project

South Korea’s Ministry of Science and ICT has proposed a 4.7 trillion won (about $3.5 billion) public investment in a frontier artificial intelligence model, with the project planned to begin in March 2027. The proposal is part of the government’s draft 2027 budget and requires approval by the National Assembly before the ministry can proceed. The ministry says it will choose a lead developer through an open, competitive process after the budget is approved. Companies, consortia and other entities, including startups, could participate. Officials have said that private funding is expected to supplement the public investment, but the final investment structure and participation requirements have not been settled. The planned frontier effort would operate alongside, rather than replace, South Korea’s existing homegrown foundation-model program. That competition is continuing, with two finalists still due to be selected. The ministry says the current program will also support Korean-developed models for industry applications, while the new project focuses on developing a more advanced model.