[K-Tech] Korea selects five teams to develop national AI models in major push for technological sovereignty

Logos of the five selected AI foundation model teams from top left to bottom right Naver Cloud LG AI Research NC AI SK Telecom and Upstage — Logos of the five selected AI foundation model teams: Naver Cloud, LG AI Research, NC AI, SK Telecom, and Upstage

SEOUL, August 04 (AJP) - The South Korean government has selected five elite teams to spearhead the development of foundational artificial intelligence models, marking a major step in the country’s effort to build a sovereign AI ecosystem.

The Ministry of Science and ICT announced Monday that the teams — Naver Cloud, Upstage, SK Telecom, NC AI, and LG AI Research — were chosen following a government-led evaluation of proposals based on technological capability, strategic vision, feasibility, and potential contributions to Korea’s broader AI landscape.

Each team brings a distinct approach to the ambitious national project.

Naver Cloud was recognized for its development of core technologies supporting a general-purpose AI model designed for broad, real-world usability and public accessibility. Upstage earned praise for its commitment to building world-class AI models grounded in proprietary technology, with an eye toward strengthening Korea’s AI research and industrial base.

SK Telecom was selected for its work on next-generation multimodal AI capable of processing language, images, and behavioral data to deliver uniquely “Korean-style” AI services. NC AI stood out for its focus on building scalable generative models for industrial applications, while LG AI Research received high marks for EXAONE — a hyper-scale AI system developed entirely using domestic technologies.

Formal agreements with the five teams are expected to be signed by the end of August. Upon signing, the groups will be at the forefront of Korea’s national AI strategy.

But the path forward will be highly competitive. A first-phase evaluation in December will reduce the number of teams from five to four. Subsequent performance reviews will take place every six months, with only two teams ultimately remaining by 2027 under what the ministry described as a “survival-based” system.

The initiative reflects growing momentum in South Korea to assert greater technological independence in foundational AI — the large-scale models that underpin applications ranging from search and translation to robotics and advanced analytics.

The move also echoes similar efforts in the European Union and China to build national alternatives to dominant platforms developed by U.S. tech giants.

Analysts say the project signals Seoul’s intent not only to catch up in the global AI race, but to shape its own path in defining ethical, accessible, and nationally controlled AI systems.

“It’s not just about building powerful models,” said Lee Jae-hyuk, a researcher at the Korea Institute of Science and Technology Policy. “It’s about defining what Korean AI looks like — and ensuring it reflects the country’s values, industries, and strategic priorities.”

Lim Jaeho ajupresswogh@ajupress.com