Korea’s AI Crossroads: former Minister Warns of Looming Dependence on US and China
Korea faces a critical juncture in its artificial intelligence development, with the next two to three years representing a “golden time” to secure its position in the global landscape.This warning comes from former Minister of SMEs and Startups Park Young-sun, a key figure in shaping Korea’s early AI policies and now a vocal advocate for a strategic, self-reliant approach to the technology.
Park, frequently enough dubbed the ‘Samsung sniper’ for her work on conglomerate reform, recently published “The Three AI Powerhouses, Creating the future with Our Own Hands,” outlining a roadmap for Korea to become a leading AI force. Her urgency stems from a belief that failure to act decisively will result in technological, data, and service dependence on the United States and China, a situation she likened to the government’s strategic delay of Apple’s entry into the Korean market, allowing Samsung to prepare Android phones. “Now is our last chance to create our own industrial structure related to artificial intelligence technology.”
The foundation for Korea’s current AI ecosystem began in 2017 with the proposal of the ‘Basic Robot Act,’ recognizing the need to address the societal shifts driven by automation. As Minister of SMEs and Startups from 2019 to 2021,she championed policies to nurture artificial intelligence semiconductor design startups,laying the groundwork for companies like Furiosa AI,Rebellion,and DeepX. She recalls facing skepticism when advocating for system semiconductors, arguing that while large corporations should focus on memory semiconductors, startups could thrive in the custom design and algorithm optimization required for AI chips.
Despite initial resistance from established players like Samsung Electronics and SK Hynix, Park successfully secured a combined 4 billion won investment – 2 billion won from each company, matched with 200 million won in R&D funding for ten design startups. “These companies are now serving as national representative startups in Korea’s artificial intelligence semiconductor industry,” she stated, highlighting the exponential return on investment – “‘200 million has become 1 trillion.'”
During her tenure, Park also launched KAMP, the world’s first public-private cooperation platform specializing in manufacturing-focused AI. This initiative collected data from key manufacturing hubs like Bucheon and Changwon, aiming to boost productivity and exports for small and medium-sized manufacturers. While promising, Park expressed disappointment that the project hasn’t reached its full potential.
Park draws parallels between the current AI moment and the late 1990s internet revolution, when Korea’s early investment in nationwide high-speed internet propelled it to become a technology leader. However, she cautions that the competitive landscape is now far more intense, with the US and China locked in a fierce battle for AI supremacy. Her observations during a year and a half as a researcher at Harvard University underscored the urgency of the situation.
While acknowledging the Lee Jae-myung management’s enterprising AI goals – including becoming one of the “three major artificial intelligence powers,” a 100 trillion won investment, and “artificial intelligence for everyone” – Park expressed concerns about the lack of concrete plans and execution capabilities. She pointed to the ongoing public offering for the National Artificial Intelligence Computing Center, noting that while the need for 15,000 GPUs by 2028 is emphasized, the overall blueprint for the center remains unclear.
Park argues that Korea’s AI strategy should focus on leveraging its existing strengths – semiconductors, communications, and biotechnology – and integrating them with artificial intelligence. She also highlighted the need for a clearer definition of national AI companies and a more coordinated approach between the Ministry of Science and ICT and the Ministry of Commerce, Industry and Energy.
The next three years, Park insists, are crucial. “If this period is missed, technology, data, and services will become dependent on the U.S. and China, making recovery virtually impossible.”
Park believes AI will become a significant issue in upcoming local elections, particularly in cities like Seoul, which generate vast amounts of data but lack adequate AI governance.She cited China’s “City Brain” initiative – utilizing CCTV data to reduce crime and improve traffic flow – as a model for leveraging data effectively, emphasizing the importance of data governance and standardization while protecting personal data.
