Editorial: S. Korea finally takes first step toward AI data center

Graphics by Baek Hyeong-seon

President Lee Jae-myung has appointed Ha Jung-woo, former head of Naver Cloud’s AI Innovation Center, as senior secretary for artificial intelligence (AI) future planning. He will lead the national goal to become one of the world’s top three AI powers and manage 100 trillion won in AI investment. The selection of a private-sector expert in his forties to design this cutting-edge strategic industry offers new hope. Ha has long championed the development of a Korean-style sovereign AI model. Unlike AI platforms from U.S. tech giants aimed at global dominance, sovereign AI is developed and used at the national level. Having such a model enables domestic firms to create diverse AI services independently and build an ecosystem free from foreign control.

Despite being a global IT leader, South Korea has lagged behind its competitors in building an AI ecosystem. Since ChatGPT’s launch in 2022, countries rushed to gain advantage in AI, but Korea wasted over four years due to political deadlock in the National Assembly, delaying the AI Framework Act. Though the law finally passed late last year, the government’s bid to select an operator for the national AI data center has failed twice. The main hurdle was the project’s setup, where the government holds a 51% stake and decision-making power, while private companies bear full responsibility for operations and profits.

In the meantime, U.S. tech giants have invested hundreds of trillions of won to build AI data centers and release proprietary AI models. China is rapidly closing the gap with low-cost, highly efficient models like DeepSeek. Taiwan, a leader in AI semiconductors, has partnered with Nvidia to become a hub of the AI ecosystem. Except for producing high-bandwidth memory (HBM) chips used in AI semiconductors, South Korea’s presence in the global AI industry remains minimal.

Given this late start, Korea must now move quickly to catch up. The national AI data center should be established immediately to provide companies, universities, and research institutes with infrastructure to develop Korean AI models and services. Using the center to create a Korean-style AI model and releasing it as open source will boost ecosystem growth. Chipmakers must enhance design and manufacturing capabilities, while universities must build systems to train AI talent. Though a massive project, it is achievable with the president leading the way.