The South Korean government is increasing the use of concessional Official Development Assistance (ODA) to promote the overseas expansion of its artificial intelligence (AI) companies and technologies. This initiative includes support for AI solutions, data centers, and power supply facilities, as well as training personnel in recipient countries.
On July 20, the Ministry of Finance announced the 'K-AI Package Promotion Strategy' during the 271st Ministerial Meeting on External Economic Cooperation, chaired by Deputy Prime Minister and Minister of Finance Koo Yun-cheol.
The K-AI Package is an ODA project that utilizes the Economic Development Cooperation Fund (EDCF) to support infrastructure with AI solutions and data centers.
Initially, the government will implement an urgent advisory program under the Knowledge Sharing Program (KSP) to provide tailored assessments of AI strategies in developing countries and plan follow-up investment projects. This approach is expected to reduce the time required for typical KSP projects by about a year.
In addition to projects proposed by partner countries, the government aims to identify new project demands based on strategic planning initiatives and private sector proposals from South Korea.
The strategy also includes using trust funds to assess the conditions for AI adoption in recipient countries and conduct demand surveys. Items for AI expansion, such as innovations in AI-based industries and public services, will be selected as themes for joint events with multilateral development banks (MDBs) to convey South Korea's commitment to AI ODA and encourage MDBs to actively identify projects.
Local offices of the Export-Import Bank of Korea will meet with implementing agencies and finance ministries in recipient countries to gauge demand for AI projects and facilitate discussions. For projects with a high likelihood of success, the bank will send private experts to assess feasibility on-site.
The government plans to support AI solutions and the necessary infrastructure, including AI data centers and power supply facilities. Initially, small AI solutions will be offered as a basic menu, integrated into EDCF infrastructure to maximize efficiency and productivity. The government will also provide AI solutions applicable to various infrastructure sectors.
Building AI data centers to support the operation of AI solutions is included in the basic menu, with options for various configurations based on location and structure. Considering the power conditions in recipient countries, options such as renewable energy and battery energy storage systems (BESS) will also be added. If there are concerns about the commercial viability of connecting smart grids to existing power networks, the government will consider providing development finance.
The Ministry of Finance will continuously assess project demand through EDCF local offices and propose the K-AI Package menu to recipient countries and MDBs to promote project commercialization.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.