[K-AI Challenge] ④Naver: "The AI Model That Knows Korea Inside Out... Ready for Export"

Interview with Sung Nakho, Executive Vice President of Naver Cloud
Learning and Analyzing Diverse Types of Data
Developing 'Omni-Modality' and Building an AI Platform

Sung Nakho, Executive Vice President and Head of Hyperscale AI at Naver Cloud, is being interviewed on the 11th at Green Factory in Jeongja-dong, Gyeonggi Province. Photo by Naver Cloud

"In the past, it was unimaginable for our country to export nuclear power plants or defense industry products, but now it has become possible. We have a business strategy to build and export AI ecosystems tailored to each country."

During an interview held on August 11 at Green Factory in Jeongja-dong, Gyeonggi Province, Sung Nakho, Executive Vice President and Head of Hyperscale AI at Naver Cloud, stated, "Now is the golden time as the US and China are fiercely competing for dominance in AI." The Naver Cloud consortium is participating in the Ministry of Science and ICT's 'Independent AI Foundation Model' project, which aims to select a national AI representative. Including Naver Cloud, a total of five elite teams are evaluated every six months, and by 2027, only two teams will remain in this survival competition.

Naver Cloud, which has long advocated for 'Sovereign AI' utilizing its own technology, data, and talent, is fully committed to this competition to select the national AI champion. Sung emphasized, "We possess 'full-stack AI' capabilities, covering all technologies necessary for AI development and operation," and added, "The government's AI policy direction aligns with our business portfolio."

Naver Cloud's strategy is to realize AI for everyone through 'omni-modality' technology. Omni-modality refers to the simultaneous understanding and processing of various types of data, not only language but also images, audio, and video. This brings AI closer to the way humans perceive the world. This is also why Naver Cloud formed a consortium with Twelve Labs, a company specializing in video data understanding and analysis. Sung explained, "Whereas language-based AI services like ChatGPT have required users to be skilled at asking questions, omni-modality will enable even those who are not adept at formulating questions to use AI effectively." By training the model on a wide range of image data, including Korean street views, trending fashion, and K-pop artists, it is possible to create an AI model with in-depth knowledge of Korea. Furthermore, as the AI observes and understands users in a multidimensional way, the more it is used, the more satisfying the service becomes.

Based on this, Naver Cloud plans to build a platform where various AI agents for fields such as healthcare, law, and education can be distributed independently. The goal is to create a marketplace, much like Smart Store, where AI companies can connect with many users. Sung stated, "Rather than developing specific agents, Naver Cloud wants to provide distribution services as a platform," and explained, "It's similar to how Smart Store enabled business owners to use IT services at a low cost and focus on selling their products."

Going further, Sung presented a vision to export this AI ecosystem and help countries establish their own sovereign AI foundations. He said, "Naver Cloud has already built trust and is collaborating with governments such as those of Thailand and Saudi Arabia," and added, "Our strategy is to export in a customized manner, focusing on countries that do not wish to be technologically dependent on the US or major corporations." He expressed his ambition by saying, "Just as Korea's defense and nuclear power exports were once unthinkable, we will prove that AI exports are also possible."

Although Naver Cloud has extensive experience and know-how in AI, it does not necessarily have an advantage in this project. This year, among the support provided by the Ministry of Science and ICT-GPUs, data, and labor costs-Naver Cloud will only receive data, with no other support. Naver Cloud has taken on the role of providing GPU resources to other companies by participating in the government's GPU rental project. Instead of receiving labor cost support, Naver Cloud is collaborating with young talent from consortium partners such as Seoul National University, KAIST, and POSTECH.

Sung emphasized the need for regulatory easing by the government, at least regarding data, which is often called the 'crude oil' of the AI era. He said, "In Chinese factories, employees are required to wear smart glasses and all situations are recorded to collect data," and added, "Without data, there is no AI. We must seriously consider how to relax domestic data regulations if we want to realize sovereign AI."

Meanwhile, the Ministry of Science and ICT will conduct an evaluation in December, eliminating one of the five teams and leaving four. Afterward, the teams can restructure their consortiums, and Naver Cloud plans to form a new consortium with companies specializing in AI agents. Sung stated, "For the second consortium, I want to work with companies that can create value when AI technologies are combined."