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Korea Herald
6 days ago
- Business
- Korea Herald
[Rumman Chowdhury] Sovereign AI: A new frontier of national ambition
Should AI be a public good, shaped by local values, or a technology controlled by a handful of geographically-limited tech giants? The rise of 'sovereign AI' -- locally developed, government-backed artificial intelligence systems -- reflects a world wrestling with the urgent questions of power, autonomy, and identity in the digital age. This push is not merely about technological prowess; it is a response to deep geopolitical anxieties, economic ambitions, and cultural imperatives. The geopolitical landscape is shifting rapidly. The US-China rivalry over AI supremacy has made clear that technology is now a front line in global power struggles. Smaller countries, wary of becoming pawns in this contest, are investing heavily in their own AI capabilities. Brazil and India, for example, have collectively committed billions to build sovereign AI infrastructures, fearing that reliance on foreign technology could compromise their security and autonomy. Across Southeast Asia and the Middle East, national strategies increasingly prioritize AI sovereignty, not just to keep pace with global powers, but to avoid being left behind in a world embroiled in an AI arms race. Other Asian nations have emerged as major players in sovereign AI, with some viewing them as a 'buffer' between global hegemonic powers China and US. South Korea is aggressively pursuing sovereign AI to establish technological autonomy and cultural relevance, anchored by a landmark $735 billion investment pledge from President Lee Jae Myung. This strategy centers on developing domestically tailored AI systems trained on Korean language data and historical context, moving beyond reliance on foreign platforms. Key architect Ha Jung-woo, appointed as the nation's first Chief Secretary for AI Future Strategy, advocates for "sovereign AI that has learned from Korea's culture and history," prioritizing infrastructure like 5,000+ GPUs for selected "national AI champions". Crucial to this vision is the SK Group-Amazon Web Services partnership building South Korea's largest AI data center in Ulsan, alongside legislative foundations like the AI Basic Act (effective January 2026). As the EU's peer in comprehensive AI regulation, this law establishes governance for "high-impact" AI systems while promoting public-private collaboration. Importantly, government-supported AI projects will be open-sourced for broad societal use. The initiative targets strategic sectors like semiconductors and biotechnology, aligning with national goals to rank among the world's top three AI powers by 2030. This includes expanding GPU capacity 15-fold and achieving 70% industrial AI adoption. Security dimensions are addressed through the National AI Security Consultative Group, though the AI Basic Act explicitly excludes military applications from its scope. While open-source frameworks and regional coalitions offer pragmatic pathways, South Korea's sovereign AI ambitions remain a high-stakes gamble balancing cultural preservation against technical and economic constraints. Structural challenges persist -- limited Korean-language datasets, GPU procurement hurdles, and dependence on foreign infrastructure threaten scalability. For all sovereign AI developers, the economic stakes are enormous. AI is projected to add trillions to the global economy by the end of the decade. Nations like Saudi Arabia and Malaysia are pouring resources into local AI ecosystems, determined to capture this value for themselves rather than see it flow to Silicon Valley or Shenzhen. The message is clear: countries want to be creators, not just consumers, of the AI revolution. This lesson was hard-learned from the early days of the internet, which was dominated by Silicon-Valley based search engines, shopping websites, and social media platforms. Local leaders now seek to foster homegrown talent, build domestic industries, and ensure that the economic benefits of AI accrue to their own citizens. Culturally, the need for sovereign AI is even more urgent. Most of the world's leading AI models are trained on English-language data, leaving non-English speakers, and their unique cultural contexts, at a disadvantage. Indonesia's massive Bahasa-speaking population and Saudi Arabia's Arabic-first models are early examples of how countries are tailoring AI to their own languages and traditions. These efforts are not just about better translation or customer service; they are about ensuring that AI reflects and respects local values, histories, and identities. But building truly sovereign AI is no small feat. It requires not just advanced algorithms, but also robust data infrastructure, massive computing power, local talent and effective governance. The European Union's Gaia-X and India's Bhashini initiative are pioneering efforts to create secure, locally controlled data environments. Denmark is investing in domestic supercomputers, while Singapore and Taiwan are developing their own large language models. In addition, many nations are capitalizing on the Trump administration's purge of scientific talent to draw talent away from the United States. These projects are ambitious, but they are also fraught with complexities. The technical and economic hurdles are formidable. Training a state-of-the-art AI model can cost hundreds of millions of dollars. This price tag is prohibitive for most nations. Maintaining sovereign AI infrastructure is often more expensive than relying on global cloud providers. And while some countries, like Japan, are pursuing hybrid models that combine local development with international partnerships, others risk creating 'AI islands' isolated from global innovation. Critics note Malaysia's sovereign AI delivers 2.3x slower performance than global counterparts despite heavy investment, highlighting viability concerns. Ethically, government ownership of AI raises a host of thorny questions. On one hand, public control could ensure that AI serves the common good, free from the profit motives and opaque algorithms of private corporations. On the other hand, it raises the specter of state surveillance and censorship. China's Social Credit System, Hungary's illegal public monitoring of LGBTQ+ allies and the UAE's use of AI to monitor government communications are cautionary tales of how sovereign AI can be weaponized for social control. There are also concerns about bias: nationally curated datasets may reflect the biases of majority populations, leaving marginalized groups behind. In addition, these models may serve as tools for propaganda by current political parties -- similar to how Elon Musk has publicly declared his intent to influence Grok, his AI model. The path forward is not clear-cut. Absolute AI sovereignty may be an illusion in an interconnected world, but so is complete dependence on foreign technology. Some countries are exploring regional coalitions, like ASEAN's shared AI cloud, or open-source collaborations that balance local needs with global innovation. France, for example, is focusing on sector-specific sovereignty in healthcare, while Indonesia is building on open-source frameworks to create models that are both locally relevant and globally compatible. Ultimately, the quest for sovereign AI is about more than technology. It is a reflection of a world in flux, where nations are reasserting their identities and interests in the face of rapid change. The challenge is to strike a balance between autonomy and collaboration, innovation and control, national ambition and global responsibility. In the end, the most successful countries may be those that can navigate this delicate equilibrium, building AI systems that are both locally rooted and globally connected.
Korea Herald
20-06-2025
- Business
- Korea Herald
Korea lays out lifelong support plan for science, tech talent
In a bid to bolster its science and technology capabilities, South Korea's new administration approved a major policy revision to provide lifelong, full-cycle support for students and professionals in science, technology, engineering and mathematics, or so-called STEM fields. The enforcement decree of the Special Act on supporting science and engineering fields was amended and passed during a Cabinet meeting on Thursday, the presidential office said. The revised decree aims to lay a legal foundation for government-led support for STEM talent, from primary school students to senior researchers. "The revision is a fast-tracked fulfillment of the government's promise to nurture science and technology talent and will significantly contribute to building a national growth system centered on science and technology," said Ha Jung-woo, senior presidential secretary for AI and Future Planning on Thursday. The amended decree includes key initiatives, such as focusing on early engagement with programs and content designed to spark interest in science and mathematics among elementary and middle school students, so that they are encouraged to pursue higher education in STEM. Integrated degree programs and customized education in partnership with industry and research institutes are included to support university students and graduates Ha, former head of Naver's AI innovation, emphasized the urgency of enhancing Korea's competitiveness in artificial intelligence. 'The next three to five years may prove to be a golden window in the AI era. I've joined with the determination to contribute all I can to strengthen Korea's AI capabilities with the experience and capabilities I have gained over time,' he said. He highlighted the importance of building a comprehensive value chain across infrastructure, data centers and semiconductors, and stressed the need to create a virtuous cycle in which startups can develop innovative services and grow globally. The revised decree also includes provisions to attract international STEM talent. 'The revision strengthens strategies to recruit global experts and incentivizes their return or long-term stay in Korea,' Ha noted. Asked about the recent trend of students gravitating toward medical school over science and engineering — largely due to salary prospects — Ha acknowledged that the issue cannot be solved through compensation increases alone. 'This is directly tied to corporate labor costs,' he said. 'We're seeking solutions from a long-term, multi-agency perspective involving the ministries of education, welfare, and science and ICT.'
Korea Herald
19-06-2025
- Business
- Korea Herald
[Editorial] Brains before algorithms
South Korea's push for AI leadership must confront the challenge of retaining talent South Korea has declared its ambition to become one of the world's top three powers in artificial intelligence. The goal is bold, the funding substantial: President Lee Jae Myung has pledged 100 trillion won ($72.5 billion) to the sector. Earlier this week, Lee appointed Ha Jung-woo, a respected AI researcher formerly at Naver, as the country's first senior presidential secretary for AI policy. A sweeping initiative, backed by public and private investment, is beginning to take shape. Alongside infrastructure plans such as a major AI data center in Ulsan co-funded by SK Group and Amazon Web Services, Lee's initiative signals a serious — if belated — push to catch up in the global AI race. But lofty goals and generous budgets alone do not make an AI powerhouse. Without the talent to match its vision, South Korea risks building a hollow structure: well-funded, well-planned and ultimately weakened by the steady loss of its brightest minds. The warning signs are clear. According to the Korea Chamber of Commerce and Industry, South Korea ranks 35th out of 38 OECD countries in net AI talent mobility. For every 10,000 residents, 0.36 more AI professionals leave the country than arrive. This widening 'brain deficit' threatens the very foundation of Lee's AI strategy. The trend is not confined to AI. Across science and technology fields, more Korean professionals are seeking careers abroad, while fewer foreign experts are choosing to relocate to South Korea. The KCCI analysis also shows that the country's innovation pipeline is faltering: fewer international research partnerships, declining venture investment and a generation of STEM graduates opting for medical school or emigration over startups and R&D. This is not simply about money. Young Korean scientists and engineers are drawn to countries where advancement is based on merit, not seniority. They want flexible work environments, robust research infrastructure and room to take intellectual risks. Yet at home, they face rigid institutional norms: a 52-hour workweek cap, seniority-based pay and limited opportunities for global collaboration — all of which hamper South Korea's ability to attract and retain top-tier talent. The financial cost of this exodus is high. Each college graduate who leaves to work abroad represents more than 550 million won in lost public investment and future tax revenue. The long-term damage is even greater. As the scientific workforce erodes, the innovations South Korea hopes will define its economic future could stall before they begin. The government's investment in AI infrastructure is a necessary step. Ha Jung-woo's appointment and his advocacy for a sovereign AI trained on Korean language and culture show strategic insight into the risks of overdependence on foreign platforms. But infrastructure must be matched by reforms that address the root causes of the brain drain. The task ahead is not just to slow the outflow, but to reverse it. South Korea needs a comprehensive 'brain gain' strategy that builds a national ecosystem where talent can thrive. This includes more flexible labor rules, performance-based rewards and stronger support for research and innovation. It also means creating meaningful incentives for foreign experts to come, and to stay, through streamlined visas, tax benefits and improved housing and education options. By the end of 2025, South Korea is expected to face a shortfall of nearly 15,000 AI professionals. And in an era when AI capability is closely tied to national security, economic competitiveness and global standing, there is little margin for error. South Korea has the financial resources, political resolve and technological foundation to lead in AI. But success will depend less on the amount invested and more on the country's ability to cultivate — and retain — the people who will drive that future forward. In the AI age, it is not the machines but the minds that matter most.
Korea Herald
19-06-2025
- Business
- Korea Herald
Naver shares surge on AI optimism, hit 52-week high
Naver shares surged for the second consecutive session on Thursday, buoyed by investor optimism over the Lee Jae Myung administration's commitment to nurturing the domestic artificial intelligence sector. The internet giant closed at 252,000 won ($182.47) on the main bourse Kospi, up 3.49 percent from the previous session. This followed a nearly 18 percent on Wednesday, marking a two-day rally that has captured market attention. It is the first time Naver shares have topped 250,000 won since Aug. 19, 2022, when it traded at 251,000 won. During early trading Thursday, Naver briefly touched 259,000 won, setting a new 52-week high. The company's market capitalization ranking also rose, climbing from 11th to 8th on the Kospi in just two trading days, overtaking Samsung Electronics preferred shares, Kia and Doosan Enerbility. Investor sentiment has been further buoyed by the appointment of Ha Jung-woo, head of Naver's Future AI Center, to the newly established post of senior presidential secretary for AI and future technology planning. His appointment is seen as a strategic move aligning with the government's AI ambitions. President Lee has pledged to build a national large language model to make AI accessible to all citizens, raising expectations for Naver's participation in the landmark project. Global investment banks have reinforced this momentum. On Tuesday, JPMorgan raised its target price for Naver from 250,000 won to 270,000 won, while maintaining its 'overweight' rating. Citigroup followed suit Thursday, naming Naver its top pick among Korean internet platform stocks and lifting its target price from 270,000 won to 300,000 won. 'Foreign investors turned net buyers after JPMorgan raised its investment rating on Naver to 'overweight,' citing potential benefits from the Korean government's 100 trillion won AI investment plan and the appointment of a new senior secretary for AI who previously served at the IT giant,' said Lee Kyung-min, an analyst from Daishin Securities. Meanwhile, shares of Naver's crosstown rival Kakao also rallied as a potential beneficiary of AI policies. Kakao closed at 60,400 won, up 9.42 percent from the previous session. During the day, the stock hit a 52-week high of 61,800 won.
Mint
18-06-2025
- Business
- Mint
South Korean shares climb as tech rally revives on AI, crypto optimism
KOSPI rises, foreigners net buyers Korean won strengthens against dollar South Korea benchmark bond yield steady SEOUL, - Round-up of South Korean financial markets: ** South Korean shares rose on Wednesday, led by a renewed rally across tech firms amid policy optimism over artificial intelligence and cryptocurrencies, while broader market sentiment was on geopolitical tensions in the Middle East. ** The benchmark KOSPI was up 20.55 points, or 0.70%, at 2,970.85, as of 0222 GMT. ** Search engine Naver surged 15.25% and instant messenger Kakao jumped 6.37%. ** The technology sector resumed a rally seen earlier this week after President Lee Jae Myung, who has pledged to increase investment in AI, on Monday appointed Ha Jung-woo — head of the Future AI Centre at Naver, South Korea's leading web portal — as his first AI secretary. ** "A U.S. bill on stable coins also boosted investor sentiment around the sector," said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to what is dubbed the GENIUS Act. ** Still, concerns over escalating hostilities in the Middle East remained at the forefront of market sentiment. ** U.S. President Donald Trump called on Tuesday for Iran's unconditional surrender and warned U.S. patience was wearing thin, but said there was no intention to kill Iran's leader "for now", as the Israel-Iran air war entered a sixth day. ** Among other index heavyweights, South Korean chipmaker Samsung Electronics rose 2.07%, while peer SK Hynix lost 0.10%. Battery maker LG Energy Solution slid 0.34%. ** Hyundai Motor and sister automaker Kia Corp were down 0.37% and 0.95%, respectively. Steelmaker POSCO Holdings added 0.19%, while drugmaker Samsung BioLogics fell 0.50%. ** Of the total 935 traded issues, 469 shares advanced and 401 declined. ** Foreigners were net buyers of shares worth 81.0 billion won . ** The won was quoted at 1,372.4 per dollar on the onshore settlement platform, 0.12% higher than its previous close at 1,374.0. ** In money and debt markets, September futures on three-year treasury bonds lost 0.01 point to 107.20. ** The most liquid three-year Korean treasury bond yield rose by 0.5 basis point to 2.454%, while the benchmark 10-year yield rose 0.5 basis point to 2.863%. This article was generated from an automated news agency feed without modifications to text.
