S. Korea sets AI transformation as centerpiece of new economic plan

123 — The ruling Democratic Party's floor leader Kim Byung-ki (left), and Koo Yoon-cheol, South Korea's Deputy Prime Minister and Minister of Economy and Finance, pose for a photograph at the National Assembly on August 20. YONHAP

SEOUL, August 20 (AJP) - South Korea's government and ruling Democratic Party on Wednesday announced plans to push for an "AI transformation" across industry, government, and daily life, while easing heavy penalties on companies and opening public data to the private sector.

The announcement followed a policy meeting at the National Assembly attended by the ruling Democratic Party (DP), the Ministry of Economy and Finance, the Ministry of Science and ICT, and the Ministry of Trade, Industry and Energy. Officials said the strategy rests on four pillars: "technology-led growth," "inclusive growth," "fair growth," and "sustainable growth."

To support advanced industries, the government will designate key projects and provide assistance packages that include financing, tax incentives, manpower, and regulatory support. The DP also said it will prepare legislation to expand access to public data and help implement government initiatives.

Han Jeong-ae, the party’s policy chief, said after the meeting that the government and the ruling party will move to revise corporate governance laws and adjust regulations that do not meet global standards. "There were opinions within the party, including from the special committee on the KOSPI 5000 initiative, that revisions are needed regarding excessive penalties such as breach of trust charges," she said.

The DP plans to launch a task force to pursue these reforms together with the government. Officials also said the scope of the stewardship code will be expanded to strengthen corporate governance by requiring institutional investors to act more responsibly when managing assets.

The AI-centered growth plan traces back to a campaign pledge by President Lee Jae-myung ahead of the June 3 snap election. During his campaign, Lee promised to create a 100 trillion won fund, with contributions from both the public and private sectors, to make South Korea one of the world’s top three AI powers. He also vowed to ramp up investment in advanced industries ranging from biotechnology and healthcare to aerospace and defense.

Park Sae-jin swatchsjp@ajunews.com