South Korea bets $3.49 billion on building a homegrown frontier AI model to rival China's best
South Korea plans to invest 4.7 trillion won (about $3.49 billion) through government equity investment to develop a homegrown frontier AI model; the funding is part of the 2027 budget proposal and still requires National Assembly approval. The new plan expands roughly ninefold on the previous 530 billion won given to five companies and sets up a second track to support Korean models' deployment; the government will launch an open competition that startups can also join, rather than automatically increasing the bids of LG AI Research, SK Telecom and Upstage, and officials say Korea aims to match China's leading open-source models.