- The South Korean government has decided to provide loans of 400 billion won (~$300 million) at an interest rate of approximately 3% to support Naver in expanding its AI data centers.
- The project focuses on upgrading the data center in Sejong to develop a domestic Large Language Model (LLM) and increase AI applications in search services.
- Naver will invest in additional next-generation GPUs to boost computing power, a key factor in the AI race.
- The South Financial Services Commission emphasized that domestic companies are heavily dependent on the AI infrastructure of global Big Tech.
- The funding aims to help South Korea build “AI sovereignty” – technological self-reliance in domestic AI.
- This is part of a national strategy to reduce dependence on foreign AI platforms.
- In addition to Naver, the government is also supporting the semiconductor company SEMCNS to develop domestic chip testing components.
- SEMCNS produces ceramic space transformers (STF) for the semiconductor ecosystem, helping to localize the supply chain.
- This policy prioritizes local small and medium-sized enterprises with simplified credit procedures.
- The move shows that AI is not just a technology but has become a national strategic issue and a matter of geopolitical competition.
📌 South Korea is betting big on domestic AI with an investment of about 400 billion won (~$300 million), aiming to build infrastructure and reduce dependence on Big Tech. The development of its own LLM and domestic GPUs shows that AI has become a factor of national competitiveness. Beyond software, the country is also investing in the semiconductor supply chain, demonstrating a comprehensive strategy to gain control of technology in the AI era.
