- On August 13, 2025, South Korea’s National Planning Committee announced a five-year economic strategy for President Lee Jae Myung’s administration, aiming to overcome the growth crisis and lead global technology.
- The strategy includes 3 operating principles, 5 policy goals, and 123 key national tasks, with accompanying fiscal and legislative plans.
- A key objective is to build a nationwide “AI highway”: providing high-performance computing infrastructure with over 50,000 GPU chips and high-quality datasets.
- The government aims to position South Korea among the top 3 global AI powerhouses by integrating AI into public services (welfare, legal, disaster relief…).
- A national AI coordination center will be established to oversee AI policies across ministries.
- The plan aims to secure a long-term science and technology workforce and increase annual venture capital investment to 40 trillion won (equivalent to $28.9 billion).
- An innovation ecosystem will be built around 5 key sectors: AI, biotechnology, cultural content, defense & aerospace, and clean energy.
- The government will establish a 100 trillion won ($72.3 billion) national fund, merging the existing 50 trillion won fund from the Korea Development Bank with private capital.
- The fund will operate on market-based principles, providing capital at interest rates comparable to government bonds to support high-tech companies.
- The fund will also finance the construction of AI data centers and essential infrastructure for the innovation industry.
- Regarding energy, South Korea announced an “energy highway” plan to connect renewable energy projects with industrial complexes on the west coast by the 2030s and expand it nationwide in the 2040s.
- The plan includes expanding offshore wind and solar power, creating RE100-certified industrial parks, and modernizing the power grid with AI technology.
📌 South Korea will invest a total of 100 trillion won ($72.3 billion) over the next five years in an innovation ecosystem centered on five key sectors: AI, biotechnology, cultural content, defense & aerospace, and clean energy. The goal is to become a top 3 global AI leader, build a nationwide “AI highway,” develop a technology ecosystem, and establish a modern renewable energy network by the 2040s.
