NIPA restructures to boost Korea’s global AI competitiveness

NIPA President Park Yun-kyu

South Korea’s lead agency for advancing digital and AI innovation is undergoing a major organizational overhaul to strengthen the country as an artificial intelligence powerhouse. The restructuring aims to fast-track AI infrastructure buildup and make domestic AI semiconductors more competitive.

At a press briefing marking his 100th day in office on Thursday, National IT Industry Promotion Agency (NIPA) President Park Yun-kyu emphasized the urgency of adapting to rapidly evolving technologies such as generative AI, agentic AI, and physical AI. “AI is at the heart of national competitiveness. It is time to realign our strategies and organization to keep pace with global developments,” Park said.

NIPA is launching large-scale national AI projects, with the 2025 AI-related budget significantly expanded to 2.4 trillion won - including 600 billion won from the initial budget, 1.7 trillion won from the first supplementary budget, and 100 billion won from the second.

As part of the restructuring, the agency expanded its AI unit from two to three divisions. The newly organized structure includes the AI Infrastructure Division, which will oversee the development of AI computing infrastructure; the AI Semiconductor Support Division, responsible for formulating strategies, driving pilot projects, and identifying semiconductor business opportunities; and the AI Application Division, which will focus on accelerating the industrial adoption of AI technologies.

The new support division will also focus on emerging areas such as device-embedded AI and next-generation physical AI, forming dedicated teams to support their development.