Reannouncement Scheduled for June 2
Companies Shun Burdensome Application Requirements
Some Firms Seen 'Timing Their Move' Amid Government Transition
The government's project to establish a National AI Computing Center failed to attract a single applicant in its first public call for private sector participation. The Ministry of Science and ICT announced on May 30 that it would relaunch the call for applications under the same conditions on June 2.
The project aims to create a special purpose company (SPC) with a 51:49 equity split between the government and the private sector, and to build a large-scale, AI-dedicated data center outside the Seoul metropolitan area. The total project budget is set at 2.5 trillion won, with goals including the establishment of computing infrastructure with a performance of at least 1 exaflops (EF) and an increase in the proportion of domestically produced AI semiconductors.
However, private sector participation was lower than expected. Although major companies such as the three mobile carriers, Kakao, and Naver attended the prior project briefing, no consortia ultimately submitted applications. A Ministry of Science and ICT official stated, "We received reports that even some companies that were considered likely participants ultimately did not submit applications offline," adding, "As a result, this public call ended without any bidders and was declared unsuccessful."
Industry analysts point to the burdensome application requirements as a key reason. Private companies are required to contribute about 200 billion won by 2030. In addition, there are concerns that the long-term stability of AI computing demand is not guaranteed, making it risky for companies to participate in a public sector-led project where profitability is difficult to secure.There is particular concern about the 'put option' clause, which requires private participants to buy out the government's equity?including interest?upon the liquidation of the SPC. This is seen as a transfer of responsibility to the private sector.
While the Ministry of Science and ICT has specified that the application period for the renewed call will be "at least 10 days," it also stated that, since sufficient preparation time was provided during the initial call, the period will not be excessively extended. The application requirements will also remain unchanged.
Despite the renewed call, it remains uncertain whether more companies will participate. Some observers believe that political uncertainty during the government transition period is also delaying private sector involvement. An industry source commented, "Some companies are inclined to wait until the new government is firmly in place before considering participation, in order to align with the new administration's AI policies." In fact, since major presidential candidates have made AI industry development a core pledge, companies may reassess their participation depending on future policy directions.
The Ministry of Science and ICT aims to open the center within 2025 and to establish a public infrastructure foundation for the domestic AI ecosystem. However, there are also views that, if private sector participation does not materialize, the SPC structure itself may need to be reconsidered.
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