South Korea is positioning itself to become a pivotal nation within the global artificial intelligence (AI) supply chain, according to pronouncements made during a recent visit to the United States. President Lee Jae-myung articulated this vision at an AI summit in San Francisco, which convened leaders from major global tech firms and domestic Korean corporations. He declared that South Korea would “leap forward” to become a core country in the worldwide AI supply network.
Establishing a Global AI Hub
President Lee emphasized that the critical task in the AI era is to forge a robust supply chain that seamlessly connects technology, production, and markets. He expressed confidence in South Korea’s ability to leverage its world-class semiconductor manufacturing capabilities and production capacity to become a trusted producer of AI semiconductors and a key partner in the global supply chain. This ambition is underpinned by significant investment initiatives announced previously.
The ‘Three Mega Projects’ for Semiconductor Dominance
The President highlighted the “Three Mega Projects” unveiled last month, which focus on investments in semiconductors, data centers, and physical AI. He described these projects as a national-level supply chain stabilization strategy designed to ensure continuous semiconductor production even amidst potential crises. Furthermore, these initiatives are framed as a responsible investment to preemptively address anticipated global semiconductor shortages.
Major Investment and Collaboration Pledges
The President’s U.S. visit has spurred substantial investment and collaboration plans between Korean corporations and global tech giants. Key developments include:
- Samsung Electronics and Broadcom: A memorandum of understanding (MOU) is reportedly being pursued for a collaboration in memory and foundry sectors, potentially worth around $200 billion over the next five years.
- SK Group and NVIDIA: SK has indicated plans for a long-term supply agreement with NVIDIA and other partners, aiming for approximately $750 million in semiconductor supply over five years.
- Naver and NVIDIA/Brookfield: Naver is set to construct a global AI factory with an investment of roughly $100 billion, involving investment agreements with NVIDIA and supply contracts with Brookfield.
- Hyundai Motor Group and NVIDIA: The group is collaborating with NVIDIA to establish a standardized foundation for developing and verifying AI robots, aiming to support robot development by universities and startups.
President Lee characterized these corporate-level initiatives as “large-scale AI investment initiatives prepared over a long period by companies whose combined value exceeds 2 quadrillion won.” This suggests a coordinated and strategic push towards AI leadership.
Fostering Startup Ecosystem and Innovation
Beyond large-scale corporate investments, President Lee also focused on attracting venture capital to South Korea’s burgeoning startup scene. On March 25th, he met with leading U.S. venture capitalists, urging them to invest in Korean startups. He articulated a vision for expanding the partnership between South Korea and the U.S. beyond their long-standing security alliance into a “technology, innovation, and startup alliance.” By combining the U.S.’s venture capital prowess with South Korea’s technological strengths, President Lee expressed a desire to “create the next generation of Samsung and Hyundai, SK, and Naver.”
Future Engagements
Following his U.S. engagements, President Lee was scheduled to commence state visits to Brazil starting March 26th, continuing his diplomatic efforts to foster international cooperation and economic ties.
