South Korea Enters the ‘AI Era’ with Bold New Budget, President Lee Declares
SEOUL, SOUTH KOREA – October 4, 2024 – In a landmark address to the National Assembly today, South Korean President Lee Jae-myung emphatically declared the imminent arrival of the “AI era,” unveiling a record-breaking 10.1 trillion won (approximately $7.5 billion USD) budget dedicated to artificial intelligence development. This represents a more than threefold increase from this year’s investment, signaling a dramatic shift in national priorities and a determined push for technological leadership. This is breaking news with significant implications for the global tech landscape.
A ‘Generation Behind’ if Korea Falters on AI
President Lee didn’t mince words, framing the AI revolution not as an opportunity, but as a matter of national survival. “In the artificial intelligence era, if you are one day late, you will be one generation behind,” he warned, emphasizing the urgency of the situation. He contrasted this with the pace of change in previous industrial revolutions, highlighting the exponentially faster rate of disruption driven by AI. The President also subtly criticized the previous Yoon Seok-yeol administration, alleging cuts to research and development had set the nation back.
Beyond Software: The Rise of ‘Physical AI’
While much of the focus is on software and algorithms, President Lee introduced a new concept – “Physical AI.” This refers to the integration of AI into robotics and other physical systems, enabling them to operate autonomously in the real world. This is a key area where South Korea, with its established manufacturing prowess, believes it can gain a competitive edge. A planned investment of 6 trillion won over the next five years will focus on establishing regional “Physical AI bases,” leveraging the country’s strengths in robotics and data processing. This ambition received a boost recently with a meeting between President Lee and NVIDIA CEO Jensen Huang, who expressed confidence in Korea’s potential to become a global leader in this field.
Defense and Economic Security: AI as a National Imperative
The AI push isn’t limited to the civilian sector. President Lee announced plans to integrate AI into South Korea’s defense systems, transforming conventional weaponry into cutting-edge technologies. He underscored the nation’s already significant military strength – ranking as the 5th largest globally and spending 1.4 times North Korea’s GDP on defense – but argued that relying on external forces for national security is “a matter of pride” that should be replaced with self-reliance powered by AI innovation. This move reflects a broader trend of nations seeking to bolster their defense capabilities through advanced technologies.
Addressing Inequality and Regional Disparities
Beyond technological advancement, President Lee stressed that the AI-driven economic transformation must benefit all citizens. He pledged to reduce polarization and inequality through increased support for vulnerable groups, expanded job opportunities for the disabled, and a new “local preferential fiscal principle” aimed at revitalizing regional economies. This initiative seeks to address the concentration of economic activity in the Seoul metropolitan area and foster a more balanced national development.
Political Opposition and the Path Forward
The address wasn’t without its political friction. Members of the People Power Party boycotted the speech, staging a silent protest against a separate investigation. President Lee acknowledged the political divisions but appealed for bipartisan cooperation to ensure the budget’s timely passage. He emphasized a shared commitment to the nation’s future, despite differing political stances. The empty seats of the opposition served as a stark visual reminder of the challenges ahead in securing broad support for his ambitious AI agenda.
President Lee also highlighted recent diplomatic successes, including agreements reached at the APEC summit regarding fuel supply for nuclear-powered submarines with the United States and the full restoration of relations with China. These developments underscore South Korea’s proactive role in regional and global affairs, positioning it as a key player in the evolving geopolitical landscape.
The scale of President Lee’s AI vision is undeniably ambitious. Whether South Korea can successfully navigate the technological, economic, and political hurdles remains to be seen. However, one thing is clear: the nation is betting big on artificial intelligence as the engine of its future growth and security. Stay tuned to archyde.com for continued coverage of this developing story and in-depth analysis of the implications for the global AI race.
