South Korea's Bold AI Play: Homegrown Models vs. Global Giants

Seoul aims for AI independence, funding local tech to rival OpenAI and Google.

South Korea is strategically investing in homegrown large language models (LLMs) to reduce reliance on foreign AI technologies. This initiative supports national security and data control, with companies like LG AI Research and SK Telecom leading the charge.

Sarah Kline

By Sarah Kline

September 27, 2025

4 min read

South Korea's Bold AI Play: Homegrown Models vs. Global Giants

Key Facts

  • South Korea is funding homegrown LLMs to reduce reliance on foreign AI.
  • The government reviews progress every six months, cutting underperformers.
  • LG AI Research is developing 'Exaone' with a focus on efficiency and industry-specific models.
  • SK Telecom launched 'A.X' for conversational AI, built on an open-source model.
  • The initiative aims to strengthen national security and data control in the AI era.

Why You Care

Ever wonder if your data is truly safe when using global AI? South Korea certainly does. The nation is making a significant move to develop its own artificial intelligence (AI) models. This effort aims to reduce reliance on foreign AI technologies. Why should you care? Because this push impacts national security and your data privacy.

This strategic shift could mean more secure and culturally relevant AI solutions for users. It also highlights a growing global trend. Countries want more control over their digital futures. Your digital interactions could soon be powered by more localized intelligence.

What Actually Happened

South Korea is actively nurturing its domestic AI industry, according to the announcement. The government is selecting companies to develop large language models (LLMs). These models are specifically tailored for the Korean language and culture. This initiative positions them to compete with global leaders like OpenAI and Google.

This move underscores Seoul’s desire to lessen dependence on external AI solutions. The goal is to strengthen national security. It also seeks to maintain tighter control over data in the evolving AI era, as mentioned in the release. The government plans to review progress every six months. Underperformers will be cut, while frontrunners receive continued funding. Ultimately, only two will remain to lead the country’s sovereign AI drive.

Key Players in South Korea’s AI Race

  • LG AI Research: Developing ‘Exaone’, focusing on efficient, industry-specific models.
  • SK Telecom (SKT): Launched ‘A.X’, built on an open-source model, aiming for conversational AI.

Why This Matters to You

This push for homegrown AI has direct implications for you. Imagine using an AI assistant that truly understands Korean nuances. Think of it as a personalized service that speaks your cultural language. This is what South Korean companies are striving for.

For example, LG AI Research is developing Exaone. They are not just chasing sheer scale, according to the company reports. Instead, they want to make the entire process more intelligent. Their AI aims to deliver practical value beyond general-purpose models. “This is our fundamental approach,” co-head Honglak Lee told TechCrunch. This focus means more relevant and effective AI for specific tasks.

What benefits could you see from AI tailored to your local culture and language? Your interactions with system could become much more intuitive. What’s more, local control over data could enhance privacy protections. This ensures your information is handled according to national standards. The research shows that LG is improving its models through APIs. They use real-world data from users to refine their AI. This creates a cycle of continuous betterment.

The Surprising Finding

Here’s an interesting twist: South Korean companies are not trying to outspend global giants. Instead, they are focusing on efficiency. LG AI Research, for instance, prioritizes getting the most out of every chip. This approach challenges the common assumption that more computing power always wins. The team revealed they are creating industry-specific models. The goal isn’t massive GPU clusters. It’s about outsmarting competitors with high-performing, efficient AI.

LG’s Exaone 4.0 (32B) already scores reasonably well against competitors. This is despite its focus on efficiency over raw scale. This finding suggests that strategic data refinement and targeted creation can yield strong results. It proves that creation isn’t solely about throwing money at the problem. It’s also about smart engineering and focused application. This could redefine how smaller nations compete in the global AI landscape.

What Happens Next

We can expect significant developments in the coming months. The government will review progress every six months. This means continuous refinement and competition among the selected companies. By late 2025 or early 2026, we might see clearer leaders emerge. These will be the two companies spearheading South Korea’s sovereign AI efforts.

For example, imagine a future where your smart home devices, powered by Korean AI, seamlessly understand complex local commands. This could lead to more integrated and culturally aware system. For readers, this means keeping an eye on these emerging platforms. Consider how these localized AI solutions might integrate into your daily life. The industry implications are vast. This initiative could set a precedent for other nations seeking AI independence. It highlights a shift towards more localized and specialized AI creation.

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