From a follower to a leader: Lee administration to overhaul economic model centering on AI

The Lee Jae Myung administration has laid out its economic growth strategy for the next five years.

The centerpiece is artificial intelligence.

We have two-part coverage of this strategy today and our correspondent Kim Do-yeon reports.

At least 60 times is how often 'AI' was mentioned on Friday as five of the nation's top economy-related ministers unveiled a new economic roadmap for the Lee Jae Myung administration.

The mission: become a top-three global AI power, raise the potential growth rate to three percent, and rank among the world's top five nations.

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"Our past success stories were written in an era of being a follower economy. Now, our competitors are the top ten advanced nations. To win, we must transform all our national systems, designed for a follower economy, into a model for a super-innovative leading economy."

To fuel this vision, a "National Growth Fund" of over 100 trillion won, or roughly 75 billion U.S. dollars, will be established.

Comprised of a total of 30 projects 15 are related to fostering AI capacity in what the government calls the "AI Great Transformation."

The 15 flagship projects are put into three categories.

Physical AI with seven projects focuses on merging AI with South Korea's strong manufacturing base to strengthen robotics and auto industries, among others.

Public Sector AI with three projects involves integrating AI into government services to improve efficiency for areas such as welfare, employment, and tax administration.

Foundational AI Initiatives with five projects aimed at creating an underlying ecosystem for AI to flourish with talent cultivation and AI education accessible to earlier ages and all citizens.

To execute this, each ministry has a role. The Minister of Science and ICT has outlined plans for an "AI Highway," securing over 50-thousand advanced GPUs by 2030, and developing proprietary Korean AI models to ensure digital sovereignty.

Meanwhile, the Ministry of SMEs and Startups has pledged to reignite the investment scene.

"We will make the recovery of the contracted venture investment ecosystem our top priority, and expand the venture investment market to over 40 trillion won annually by 2030, more than three times its size in 2024."

The strategy extends across the board, with the Agriculture Ministry set to integrate AI into farming, and the Industry Ministry supporting the new high-tech manufacturing projects.

Meanwhile, the government hopes this innovation-led approach will secure long-term growth, but it remains focused on the present as well.

It forecasts a modest point-nine percent expansion this year, before rising to one-point-eight percent next year.

Kim Do-yeon, Arirang News.