Breaking News: Korea’s AI Investment to Rival Global Powers, Historic Internet Era Insights
Korea’s Ambitious AI Investment Plan
In a groundbreaking move, the Lee Jae-myung government has announced an ambitious plan to invest 100 trillion won in the advanced strategic industry, with a particular focus on AI. This investment aims to propel Korea into the global AI 3rd round, positioning it as a major player in the rapidly evolving technology landscape.
According to Lee Sang-jun, a researcher at NH Investment & Securities, Korea has been lagging behind in AI development, with private investments totaling only $1.3 billion last year. In comparison, the United States led with $10.9 billion, followed by China at $9.3 billion. The new investment plan is expected to spark a ‘3rd Venture Boom’ and enhance Korea’s competitiveness in the AI sector.
Historical Context: Korea’s Internet Pioneers
The Internet era began in Korea with significant policy support from the Kim Dae-jung administration. The introduction of high-speed Internet infrastructure led to a surge in subscriptions, with 781 million households online by 2001. This laid the foundation for Korea to become an Internet power.
Key companies such as Daum (1995), Interpark (1996), and Naver (1999) emerged during this period, contributing to Korea’s digital transformation. The development of the IT industry was a crucial strategy to overcome the foreign exchange crisis and establish Korea as a global tech leader.
The Role of AI in Future Growth
The current administration aims to leverage AI as a growth engine to overcome the economic crisis. By establishing an AI future planning chief in the presidential office and investing heavily in AI, Korea seeks to make a leap forward in the global AI market.
However, there are concerns about the effectiveness of such investments. The Moon Jae-in government’s ‘Korean Green New Deal’ faced challenges, with the BBIG (Battery, Bio, Internet, Game) index showing mixed results. Researchers warn that without visible global competitiveness, AI investments could become ‘policy theme stocks’ in the stock market.
Bank of Korea’s Support for AI Industry
The Bank of Korea’s recent base rate cuts are expected to provide liquidity to the market and have a positive impact on the AI industry. President Lee Chang-yong’s actions at the Financial Monetary Commission highlight the central bank’s commitment to supporting technological advancements.
Global AI Landscape and Korea’s Position
Korea has been lagging in AI software development, with notable gaps compared to global leaders like the United States and China. The release of AI models such as Chat GPT and Deep Chic has further emphasized the need for Korea to enhance its AI capabilities.
With the new investment plan, Korea aims to bridge this gap and establish itself as a major player in the AI sector. The success of this initiative will depend on the ability to translate investments into tangible results and global competitiveness.
Future Implications and Call to Action
The AI investment plan marks a significant step towards Korea’s future growth and technological advancement. As the global AI market continues to evolve, Korea’s strategic investments could position it as a leader in this critical sector.
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