Korea allocates over $900 mn budget for AI development in 2024

First Vice Finance Minister Kim Byung-hwan delivers an opening speech at the 6th Digital Economy Forum held in Seoul on Sep. 6. [Photo by Yonhap]

The South Korean government plans to inject over 1.2 trillion won ($900 million) next year for the development of artificial intelligence (AI) technologies and services, according to First Vice Finance Minister Kim Byung-hwan.

“We will spend more than 1.2 trillion won next year developing AI technologies and services to make digital technology a part of everyone’s life,” Kim said during his opening remarks at the 6th Digital Economy Forum held in Seoul on Wednesday. The planned investment represents a 20 percent increase compared to this year’s budget allocation of 1 trillion won.

Kim also mentioned the government’s goal of revising related regulations, including copyright laws, to remove obstacles to innovation.

“To become a leading digital nation, we must also make efforts to establish a free and fair digital order suitable for the new digital era. It is now time for the government and the private sector to think about ethics in the age of AI together.”

The government also plans to expand the budget for the fund of funds (FoF) supporting venture capital and startups to 1 trillion won as well as creating the ‘Startup Korea Fund’ with a budget of over 2 trillion won in collaboration with the private sector.

“The government’s role as a catalyst is ultimately aimed at creating a startup ecosystem centered around the private sector and the market,” Kim said, highlighting the active promotion of tax incentives for private venture capital funds and the improvement of regulations for corporate venture capital (CVC) as part of these efforts.

The event, hosted by the Economy and Finance Ministry and organized by Korea Startup Forum, was held to facilitate discussions among experts from both the public and private sectors on digital economics.