Korea's Ministry of Science and ICT signed a memorandum of understanding with BlackRock on a global partnership in the AI industry on the sidelines of President Lee Jae Myung's meeting with BlackRock CEO Larry Fink in New York on Monday (local time).
The MOU calls for cooperation on building infrastructure to meet rising AI demand, renewable energy initiatives, and a comprehensive approach to expanding AI capabilities, underscoring the confidence of the world’s largest asset manager with $12.5 trillion under management in Korea's state initiative and potential to achieve AI leadership.
Earlier this month, Seoul launched the National AI Strategy Committee commanded by the president with the ambition to become one of the world's top three AI powers. For the aim, the government is proposing to triple AI-related budget to 10.1 trillion won next year from this year's 3.3 trillion.
"Since Korea has just begun pushing for AI, a broad range of investment for AI development should be considered positive," said Kong Duk-jo, professor of AI policy strategy at the graduate school of the Gwangju Institute of Science and Technology.
Korea falls far behind the front runners in the AI race. According to Stanford HAI's 2025 AI Index, Korea's AI investment reached $1.33 billion, meager versus U.S.'s $109 billion and China's $9.29 billion.
The private sector is moving quickly to match the public push.
SK Group is building what would be the country's largest AI data center in Ulsan with 60,000 GPUs and targeted capacity of 103MW by 2029, ultimately aiming for 1GW capacity, in a joint venture with Amazon Web Services (AWS). AWS is investing $4 billion and SK contributing sources plus $2.5 billion.
The initiative is to establish "sovereign AI" infrastructure to position Korea as the hub for the Asia-Pacific region, SK Group and Korea Chamber of Commerce and Industry Chairman Chey Tae-won said in an interview with Japan's Yomiuri Shimbun on Monday. He proposed Korea and Japan to join hands to seek AI opportunities in overseas markets.
Experts urge Korea to carve out its own AI specialty as it did with memory chips in semiconductors. “We'll always be number two or three if we keep chasing AI themes other nations coined like physical AI,” Kong of Gwangju Institute pointed out.
reporter
Kim Dong-young
davekim0807@ajupress.com
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