South Korea’s Major Telecom Firms Team Up with Government for AI Investment

Minister of Science and ICT Bae Kyung-hoon with major telecom heads at the Westin Josun Hotel event in Seoul. Pictured are: Yoo Ji-sang (Korea IT Fund), Lee Chul-hoon (LG Uplus), Ryu Young-sang (SK Telecom), Kim Young-shub (KT), and Song Jae-Sung (Korea Telecommunications Operators Association). [YONHAP]

The South Korean government, collaborating with the country’s three key telecommunications companies, is set to inject over 280 billion won (approximately $202 million) into the booming field of artificial intelligence (AI).

This partnership was formally announced at a jointly organized event held in the Westin Josun Hotel, where top officials from the telecom sector gathered to unveil their investment plans and expressed commitment toward developing AI technologies.

Among the attendees were Bae Kyung-hoon, the Minister of Science and ICT, leaders from the Korea IT Fund (KIF), and other notable industry figures, all keen on promoting growth in the AI sector.

The Korea IT Fund, founded in 2002 with a total investment of 300 billion won from SK Telecom, KT, and LG U+, has a mission to finance sub-funds that nurture Korean startups in the information and communications technology (ICT) arena. As of last year, this fund has established 91 feeder funds capable of investing 4.7 trillion won in 1,669 innovative tech startups. Notably, the fund’s operations now extend until 2040, evolving to include new feeder funds aimed at AI.

While KIF has typically targeted software and technology commercialization, it is now aligning its sights on AI development as a priority.

The master fund plans to roll out an immense 150 billion won this year, complementing this with an additional 150 billion won from its limited partners, resulting in feeder funds surpassing 300 billion won. Over 240 billion won is earmarked specifically for enhancing fundamental AI technologies and nurturing AI-focused transformation companies. This strategic allocation features a dedicated 40 billion won fund for AI semiconductors and a 20 billion won initiative aimed at promoting ICT commercialization.

Minister Bae stated, “We’ll back private sector projects through tax incentives for AI data center investments and further improve existing regulations.” He assured that collaboration with the three telecom companies would be a priority to encourage an enhanced AI ecosystem in South Korea.

This article was initially published in Korean, translated via bilingual reporting and AI tools, and later refined by an English-speaking editor, ensuring review standards are upheld by our newsroom staff.

BY KIM NAM-YOUNG [yoon.soyeon@joongang.co.kr]