Government to Foster 'K-NVIDIA'... "10 Trillion Won Investment in AI and Semiconductors This Year, 50 Trillion Over 5 Years"

Public-Private Joint Meeting Held to Promote the National Growth Fund

Photo by Haeun Yoon, Deputy Prime Minister and Minister of Science and ICT Baek Kun

In order to elevate South Korea to one of the world's top three artificial intelligence (AI) powerhouses, the government will invest a total of 50 trillion won in the AI and semiconductor sectors over the next five years. For this year alone, the plan is to invest 10 trillion won, with a strong focus on fostering so-called "K-Nvidia" companies.

On March 17, the Ministry of Science and ICT and the Financial Services Commission held a joint public-private roundtable at the Press Center, attended by the Chairman of Korea Development Bank and CEOs of domestic AI semiconductor companies, to promote the "K-Nvidia Fostering Project" as part of the National Growth Fund. Five local AI semiconductor firms—Rebellions, FuriosaAI, HyperAccel, DeepX, and Mobilint—participated in the event.

Currently, the global AI semiconductor market is highly dependent on specific companies. Moreover, the massive power consumption and operational costs of graphics processing units (GPUs) are limiting the ability to meet the explosive demand for AI services.

To address these issues, the Ministry of Science and ICT announced the "AI Semiconductor Industry Leapfrog Strategy" in December last year. The ministry aims for short-term intensive support for low-power, low-cost neural processing units (NPUs), in line with the AI inference market, while also gradually securing the capabilities needed to lead the AI semiconductor sector in the future.

The ministry identified and proposed the so-called "K-Nvidia Fostering" project—which supports the design and production of domestic AI semiconductors—to the Financial Services Commission. In December, the Financial Services Commission selected and announced seven first-round mega projects for the National Growth Fund.

Deputy Prime Minister Baek Kun said, "While the global AI market is currently led by GPUs, the enormous power consumption and astronomical costs are increasingly being recognized as critical limitations. The Ministry of Science and ICT will focus policy support on nurturing the domestic NPU industry so that South Korean AI semiconductor companies can emerge as global leaders at this technological inflection point."

Lee Eogwon, Chairman of the Financial Services Commission, commented, "The AI industry requires not only large-scale investments to build initial infrastructure, but also periodic hardware upgrades during operations and step-by-step scaling-up investments as the market expands. The Financial Services Commission will provide patient, long-term capital by linking private funds with the National Growth Fund—supplying a total of 50 trillion won to the AI and semiconductor sectors over the next five years, and about 10 trillion won just this year."

At the roundtable, the Ministry of Science and ICT unveiled plans to foster the domestic AI semiconductor ecosystem and low-power, high-efficiency NPU industry. Park Taewan, Director-General for Information and Communication Industry Policy, said, "The paradigm in the AI semiconductor market is shifting from universality to efficiency—specifically, low power and low cost. Large-scale capital injection is essential for domestic NPU technology innovation to translate into real leadership in the global market, and this must be backed by focused investments through linkage with the National Growth Fund."

The Financial Services Commission revealed its investment strategy for each stage—infrastructure building, operations, and maintenance—to encourage a virtuous cycle of private investment in AI and to help domestic AI companies secure a stable foothold in the global tech race. The commission confirmed plans to invest a total of 10 trillion won in AI and semiconductor sectors this year alone.

CEOs of AI semiconductor companies introduced their roadmaps for developing next-generation NPU products with ultra-low power consumption and high performance.

Park Sangjin, Chairman of Korea Development Bank, said, "As a policy finance institution, Korea Development Bank has worked to nurture the industry ecosystem through initial direct investments and continued follow-up investments in domestic AI semiconductor firms. Going forward, we will make bold investments in promising AI semiconductor companies using a variety of financial instruments—including the National Growth Fund—and provide comprehensive support across the value chain, from fabless to foundry to packaging."

Deputy Prime Minister Baek Kun added, "It is only when AI policy and finance mesh together like gears that the great engine of South Korea's AI industry can run at full throttle. The Ministry of Science and ICT and the Financial Services Commission will work closely together as one team to ensure that our companies do not miss the golden opportunity to take the lead in the global market."

This content was produced with the assistance of AI translation services.