Government Unveils AI Industry Growth Strategy Amid Market Jitters, Raising Expectations

The government has announced a new plan to foster the artificial intelligence (AI) industry. The plan aims to expand the AI-related market by 10% by 2030 and invest 300 billion won in developing core technologies, encompassing efforts to strengthen the entire ecosystem including AI semiconductors, cloud, and data. The government views securing AI technological prowess and enhancing export competitiveness as new drivers for the national economy.

The President emphasized that AI is the core of future industries and pledged proactive support for deregulation and talent cultivation. A presidential office official stated that AI technology is an essential element for national security and economic growth, and the government will spare no effort in supporting private sector creativity to flourish.

While the government's increased support for the AI industry is expected to positively impact economic growth, the market is reacting with confusion due to uncertainties in the concrete policy implementation process. Domestic AI companies view the government's commitment as a positive signal, but the actual market response remains lukewarm.

Currently, the domestic AI market features various players, including AI semiconductor manufacturers, cloud service providers, and AI solution development startups. Concerns have also been raised that if the government's policy focuses too heavily on specific technological areas, it could hinder balanced growth across the entire AI ecosystem. The Korea Economic Research Institute pointed out that the government's AI fostering measures should be designed with a specific execution roadmap and reflect market demands, emphasizing the need for flexibility to allow companies with innovative ideas to grow, rather than uniform support.

Amidst intensifying international competition in AI technology, voices are being raised about the urgent need for South Korea to secure independent technological capabilities. Specific figures on the scale of financial investment related to AI industry development, such as its proportion to GDP or comparisons with other developed countries, have not yet been concretely presented.

Following this policy announcement, AI-related stocks have shown increased volatility in the stock market, and the movements of foreign investors are also drawing attention. Interest is mounting on the ripple effects the detailed guidelines the government will announce and the actual investment execution results will have on the domestic economy.