[COVER STORY] Korea's 2-track AI strategy casts uncertainty over sovereign model project

The South Korean government is pursuing a dual approach in artificial intelligence development, simultaneously working on a national AI foundation model and a separate program focused on frontier models. This dual-track strategy has sparked questions regarding the government's intentions and the delineation between the two initiatives. The Ministry of Science and ICT has announced that the AI foundation model project will enter its third evaluation stage, with two finalists anticipated to be chosen in February.

For the frontier AI program, the government has earmarked a budget of 4.7 trillion won (approximately $3.5 billion), slated to commence in March 2027. This allocation underscores the government's recognition of the rapid pace of global AI advancements, which has made the original objectives of the foundation model project more challenging to attain.

Despite these concerns, the government is not considering abandoning the foundation model project, as doing so could potentially undermine the ecosystem and capabilities that have been developed over the past year.

Deputy Prime Minister and Science Minister Bae Kyung-hoon has firmly denied rumors suggesting the termination of the foundation model project. He emphasized that the national AI foundation model project remains integral to Korea's AI strategy.