South Korea plans to invest 4.7 trillion won ($3.5 billion) in developing cutting-edge AI models

South Korea plans to support the development of local frontier models through government equity investment of 4.7 trillion won (approximately $3.5 billion). This funding is part of the 2027 budget proposal and still requires approval from the National Assembly. The new plan is approximately nine times the 530 billion won previously promised to five companies and introduces open competition allowing startups to participate; a second funding track will support the adoption of South Korea's self-developed models in the domestic economy, accompanied by a $590 billion chip production expansion plan.