South Korea is set to expand its private-led cloud computing industry to enhance its global competitiveness in the era of artificial intelligence (AI), the Ministry of Science and ICT announced.
The ministry unveiled its plan to boost the local cloud sector by forming strategic alliances with global companies, aiming to double the size of the domestic cloud market to 10 trillion won (US$7.3 billion) by 2027, up from 2022 figures.
Currently, South Korea's cloud technology lags behind global leaders by more than a year, and its AI cloud infrastructure remains underdeveloped, according to the ministry, citing a report from Yonhap News Agency.
To foster industry growth, the government plans to introduce policies for adopting private cloud systems across key sectors such as education, finance, defense, and other public areas. This includes easing network separation regulations and expanding tax benefits for companies in the AI and cloud space.
Additionally, the government is working on the development of a homegrown AI chip designed for data centers. Plans are also underway to establish a national AI computing center with a capacity exceeding 1 Exaflop, capable of performing one quintillion floating point operations per second.
To support the transition to a private cloud ecosystem, an AI innovation fund will be created, with the government contributing 45 billion won next year and encouraging further private sector investment.
As part of its broader AI strategy, South Korea will also open an AI safety research institute under the Electronics and Telecommunications Research Institute. This institute aims to ensure the safe development and application of AI technologies and promote the global expansion of local AI firms.
The institute is a follow-up to the global AI safety summit held in Seoul earlier this year, where world leaders, including those from South Korea, Britain, and the U.S., adopted a joint declaration promoting safe and inclusive AI.