Korea's AI sovereignty hopes face test under new US push

Korea Herald

3 days ago

Trump's AI action plan sparks concerns of US dominance, threatening Seoul's W240b efforts to build independent AI infrastructure
As US President Donald Trump signed an executive order last week unveiling an 'AI action plan' to maintain America's dominance in artificial intelligence, concerns are rising that the move could undermine South Korea's ambitions to build its sovereign AI ecosystem.
According to industry sources on Wednesday, the Trump administration's plan, signed on July 23, triggered a rapid response from China, which announced its own global AI governance initiative just three days later.
At the heart of the US plan is a push to develop and export a full-stack AI package — including high-performance GPUs, servers, software and foundation models — designed to encourage or "ensure" allied nations adopt US AI technologies and standards.
Korean experts warn that this could pose a serious challenge to Seoul's sovereign AI strategy, which centers on developing a national foundation model capable of achieving at least 95 percent of the performance of global leading models.
The Lee Jae Myung administration is currently conducting a competitive selection process to identify 'national representative AI teams,' with up to 240 billion won ($173 million) in funding allocated for the winners.
A recent report by the Korea AI Software Industry Association (KOSA) assessed that 'the US AI action plan could become an obstacle to Korea's AI self-reliance,' citing the risk of domestic firms being relegated to downstream roles, such as app development, within a US-centric AI platform structure.
'If key AI models and platforms are controlled by the US, Korean companies may find themselves merely feeding applications into foreign ecosystems,' the KOSA report read.
In response, the Ministry of Science and ICT said accelerating the development of domestic foundation models and securing key resources such as AI talent and GPU computing power are vital countermeasures to the evolving global landscape.
'Completing our sovereign AI ecosystem as swiftly as possible is the best defense,' a ministry official said. 'We will fine-tune our strategy based on the capabilities of the selected national AI teams.'
President Trump's recent remarks emphasizing the easing of regulations on AI are also expected to have an impact on Korea's implementation of its AI Framework Act.
Korea became the second country in the world, following the European Union, to pass a comprehensive AI law, which is set to go into effect next year.
While some industry insiders say that Korean startups could benefit from narrowing the tech gap by leveraging open-source models promoted by the US, they also caution that such dependency could leave Korea vulnerable to future geopolitical and technological shifts.
'One cannot deny the efficiency of utilizing some US technologies,' said an industry source who requested anonymity. 'But to avoid external vulnerabilities, Korea must acquire the full spectrum of capabilities required for AI sovereignty — from models to infrastructure and platforms. Striking a balance between national independence and global collaboration will be the key to Korea's future AI policy.'
Experts also stress the importance of diplomatic finesse in minimizing potential conflicts around AI governance while safeguarding Korea's technological sovereignty.
'A two-track strategy may be necessary,' said Lee Jae-sung, professor of the Department of AI at Chung-Ang University.
'In the early stages, actively using open-source tools can help close the gap with big tech. Over the long term, however, we need to transition to domestic solutions and build an independent AI base.'