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S Korea has 5 years to close AI gap with China: researcher

Shin Jin-woo of KAIST said the next five years will be decisive for South Korea to build industrial scale in AI and retain talent, or risk falling behind peers such as China.

Shin is the ICT-endowed chair professor at the Kim Jaechul Graduate School of AI at KAIST.

He said Korea is not far behind China on frontier model performance – the gap is closer to about half a year – but lags in ecosystem scale and deployment speed.

He pointed to talent, data, and computing power as coordinated pillars behind China’s rapid deployment.

He said Korea needs a state-supported foundation model effort as strategic insurance and warned private firms alone cannot sustain long-horizon investment.

Shin urged a two-track approach that keeps core model work while leveraging Korea’s manufacturing strength in agent-based and physical AI such as robotics.

🔗 Source: The Korea Herald

🧠 Food for thought

Implications, context, and why it matters.

A government-backed, multi-year project with billions of won

  • South Korea has already launched a state-supported push for a foundation model through the “Sovereign AI Foundation Model” project. The Ministry of Science and ICT (MSIT), a central government ministry responsible for science and technology policy, oversees the work 1.
  • The program backs three areas. It covers computing infrastructure, AI model development, plus AI transformation (“AX”) projects, which means efforts to adopt AI across industries and public services 2.
  • Support also includes government-backed graphics processing unit (GPU) capacity for some teams. It funds data procurement and processing through a KRW 10 billion joint data procurement budget, a KRW 20 billion broadcast video dataset budget, plus KRW 2.8 billion per team for team-specific dataset construction and processing 1.
  • The plan aims to build models “from scratch” in Korea. The stated purpose is technological sovereignty that reduces reliance on foreign AI technologies, which fits the idea of strategic insurance 1.

Agent-based AI may change manufacturing though supply-chain data comes from China

  • A recommended two-track plan puts “agent-based” AI at the center. That matches a wider research move toward foundation-model-based agents, which are systems that can perceive, plan, and act 3.
  • The approach focuses on South Korea’s manufacturing base. Separate research using Chinese provincial data links AI to stronger resilience in manufacturing industrial chains, which means supply networks that can withstand disruptions 4.
  • The same China-based work also reports a threshold effect. Once a region’s data-element development level crosses T ≥ 0.374, the estimated coefficient rises from 0.554 to 1.104 4.
  • Some cite this threshold result to argue for faster investment in compute plus data capacity. The underlying evidence comes from China’s setting, not direct measurement in South Korea 4.

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