Government of Korea and the nation's three major telecommunication conglomerates collaborate for AI investments
On Aug. 12, 2023, a significant gathering took place at the Westin Josun Hotel in central Seoul. The attendees were heads of Korea's major telecommunications companies and related institutions, including Lee Chul-hoon (vice president of LG Uplus), Ryu Young-sang (CEO of SK Telecom), Kim Young-shub (CEO of KT), and Song Jae-Song (vice president of the Korea Telecommunications Operators Association). Also present was Yoo Ji-sang, chairman of the Korea IT Fund investment operations committee, and Minister of Science and ICT Bae Kyung-hoon.
The event was a modal window discussion, a term not typically used for standard meetings or events, suggesting a focused and intimate setting for the exchange of ideas. The nature or purpose of the discussion was not specified in the provided information.
The gathering marked a significant step in the advancement of AI strategies in Korea, centred on innovation, investment, and commercialization. The Korean telecom companies—KT, SK Telecom, LG Uplus—and the Korea IT Fund (KIF) are collaborating extensively to boost AI competitiveness in Korea.
One of the key aspects of this collaboration is the expansion of the Korea IT Fund (KIF). Originally founded in 2002 by these telecom companies, the fund's duration has been extended from 2030 to 2040. A new AI-focused sub-fund has been created, channelling significant capital towards AI core technologies, AI transformation, and commercialization efforts.
The telecom companies plan to invest a total exceeding 300 billion won (approximately $219 million), including 150 billion won committed this year, matched by management company funds to exceed 300 billion won. Notably, over 240 billion won will target AI core and base technologies and AI transition and utilization (AX). Separate funds of 40 billion won for AI semiconductors and 20 billion won for ICT commercial performance enhancement are also established.
SK Telecom, a key player in proprietary AI large-scale model development, has developed the A.X. series of large language models (LLMs) since 2018. Their AI models incorporate "omni-modal" technology to process text, image, speech, and video data integratively. SK Telecom leverages its own TITAN supercomputer and domestically developed NPUs (neural processing units) for energy-efficient AI services. The company aims to democratize AI agents for everyday Korean life and lead AI innovation in industries like office work, manufacturing, automotive, gaming, and robotics.
The Science Ministry emphasizes that AI is the core source of innovation, committing to strengthen foundations for investment and collaboration between the government and private telecom firms. This cooperative approach is designed to place Korea among the top three global AI nations and to build a sustainable ecosystem for AI innovation and startup growth through combined private capital and policy support.
In summary, Korean telecom giants, together with government agencies and the Korea IT Fund, are steering comprehensive AI strategies involving heavy investment, proprietary foundational AI model development, and targeted support for AI semiconductor technology—all toward leadership in AI-driven digital transformation and innovation in Korea through 2040.
[1] Korea IT Fund Expands Focus to AI, Extends Duration to 2040 [2] SK Telecom Advances AI with Proprietary Large-scale Models [3] SK Telecom, KT, LG Uplus Invest 300 Billion Won in AI [4] SK Telecom's AI Strategy: Focus on Korean Language and Context [5] Korea Aims to be Top Three Global AI Nation by 2040
- The expansion of the Korea IT Fund (KIF) is now focused on artificial intelligence (AI), with its duration extended from 2030 to 2040.
- SK Telecom is advancing AI with its proprietary large-scale models, incorporating "omni-modal" technology for processing different types of data.
- In a joint effort, SK Telecom, KT, and LG Uplus are investing a total of 300 billion won towards AI development and commercialization.
