AI Emerges as Essential Infrastructure

AI has now become essential infrastructure for our lives and work, akin to electricity, the internet, and smartphones. With AI already deeply integrated into society, concerns have been raised that threats to AI services could cause societal paralysis, similar to power outages.

The incident in June 2026, when Anthropic's 'Fable 5' was completely blocked by U.S. government export controls just three days after its release, demonstrated that access to AI can be restricted. Unlike technologies previously subject to military export controls, AI's pervasive integration across society must be considered. This has amplified calls for 'Sovereign AI'.

Amidst concerns over such technological dependency, a diagnosis emerged that South Korea must seek a pragmatic 'Sovereign AI' strategy, focused on 'protecting our sovereignty and competitiveness while enhancing performance, even when utilizing engines developed elsewhere.' South Korea has decided to establish a Sovereign AI system and launched a full-scale effort. The 'Physical AI Alliance Phase 2' announced three key projects: building the 'K-Physical AI Full-Stack Platform,' establishing a 'Physical AI Training Center,' and discussing the enactment of the 'Physical AI Promotion Act' (tentative name). Instead of directly developing models at the level of Fable 5, it is crucial to maintain diversified access to multiple global AIs and create unique competitiveness by linking them with domestic sLLMs and industrial data. If this combination proves more accurate, secure, and continuously operational than global models, it will be sufficiently competitive.

Meanwhile, at the 'Physical AI Alliance Phase 2 Launch Ceremony' held at The Plaza Hotel in Jung-gu, Seoul, on the 19th, the current status of AI being utilized as a core tool across work and learning—enhancing corporate productivity, assisting researchers with data organization, and enabling individuals to draft documents—was shared.

Currently, South Korea ranks second worldwide in the number of paid subscribers to major global generative AI services, following the United States.