[New Government Growth Strategy] Full Commitment to AI Grand Transformation... 30 Leading Projects to Launch in Second Half

30 Leading Projects Launched
Comprehensive "AI Grand Transformation"
Across Companies, Public Sector, and Citizens
15 Ultra-Innovative Economy Projects Launched

The government has officially designated the "AI Grand Transformation" as a core national strategy to overcome the structural slowdown in Korea's economic growth. The government predicts that the full-scale adoption of AI will boost productivity and enable the country to achieve a potential growth rate of 3%. To this end, it has selected 30 leading projects that will involve companies, the public sector, and citizens, and will begin immediate implementation from the second half of this year.

On August 22, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol announced the "New Government Economic Growth Strategy" at a joint briefing with related ministries held at the Government Complex Seoul. The government's decision to position AI as the breakthrough for slowing growth is based on the belief that Korea's semiconductor manufacturing capabilities, such as high bandwidth memory (HBM), and world-class information technology (IT) infrastructure can maximize the synergy of AI adoption for economic growth. This is a "selection and concentration" strategy that aligns with global trends while leveraging Korea's strengths in semiconductors and IT.

30 Leading Projects Launched... Comprehensive "AI Grand Transformation" Across Companies, Public Sector, and Citizens

The 30 leading projects promoted by the government are divided into two main pillars: "AI Grand Transformation" and "Ultra-Innovative Economy," with 15 key initiatives selected for each. The primary goal of the AI Grand Transformation is to become the "world's top physical AI nation." The core strategy is to integrate AI into seven manufacturing sectors where Korea has strengths: robotics, automobiles, ships, home appliances, drones, semiconductors, and factories, all led by the private sector.

In the robotics sector, the government will immediately begin developing and commercializing industrial specialized humanoids, such as reinforcement autonomous mobile welding robots, starting in the second half of this year. In the automobile sector, it will launch pilot projects for autonomous driving in protected zones for vulnerable road users by developing AI software for self-driving vehicles with speed restrictions. Additionally, the government will support the commercialization of fully autonomous ships and develop AI drones and traffic management systems in five key sectors: aviation, firefighting, agriculture, facility management, and logistics. To expand "on-device AI semiconductors," four sectors-automobiles, home appliances, robots, and drones-have been selected for development. On-device AI, which enables AI models to run directly on devices without Internet connectivity, is a core technology for achieving the goal of becoming a leading physical AI nation.

In the public sector, the goal is to prioritize the application of AI to three main administrative tasks: welfare and employment, tax administration, and new drug review. By introducing AI to civil complaint processing, the government aims to enhance efficiency and transparency, as well as provide personalized services tailored to individual circumstances. By next year, AI-based tax consultation will be introduced, and by 2027, the National Tax Service's Hometax system will be fully revamped to enable autonomous tax filing. The government will also expand the Public AI Transformation (AX) project, promoting administrative innovation using AI across all ministries and launching numerous pilot projects that allow citizens to experience these changes firsthand.

The government will also initiate a nationwide "AI Koreanization" effort, aiming to make AI as accessible and familiar to all citizens as the Korean language through customized education. Plans include establishing AI education centers, introducing certification systems, and holding competitions, as well as providing incentives for ventures and startups. To attract global talent and prevent brain drain, the government will offer exceptional benefits such as higher salaries and alternative military service options.

The government will further expand public data openness. For example, it will increase accessibility by opening pseudonymized data with low risk of personal information leakage from the National Health Insurance Service and Health Insurance Review and Assessment Service. This is part of building the foundation for the AI Grand Transformation. The government will also promote national AI data standardization, as localizing global universal standards will ultimately increase the usability of data, such as in data transactions.

To oversee and coordinate AI policies, the government will establish the Presidential National AI Strategy Committee. In addition, it will form a coalition with academia, AI companies, and research institutes to promote nationwide cooperation. Yoon Indae, Assistant Minister of the Ministry of Economy and Finance, stated at the briefing, "We will improve the AI Promotion Act and revise subordinate regulations by gathering opinions from industry and experts."

15 Ultra-Innovative Economy Projects Launched

Alongside AI, the government will launch ultra-innovative economy projects, focusing on advanced materials and components, as well as climate and energy technologies. The goal is to increase the self-sufficiency rate of advanced materials and components such as SiC (silicon carbide) power semiconductors, LNG (liquefied natural gas) cargo holds, and superconductors, and to strengthen support for the demonstration of next-generation technologies for climate and energy response, including solar power, offshore wind power, green hydrogen, and small modular reactors (SMRs).

SiC power semiconductors, which have less power loss than conventional Si semiconductors and are considered a key material in the AI era, currently rely on imports for 90% of supply. The government plans to raise the technology self-sufficiency rate from the current 10% to 20% by 2030, and to increase the domestic production share from 5% to 10% over the same period. To achieve this, it is considering introducing new equipment for research and development (R&D) demonstrations.

To achieve technological independence in the LNG cargo hold sector, the government will establish a production and manufacturing base for insulation systems and provide loans for the acquisition and modification of two large vessels for demonstration purposes. The aim is to increase the market share of LNG carriers from last year's 55% to 70% by 2030. In addition, the government will advance superconducting technology to drive innovation in national strategic technology sectors such as medical MRI, nuclear fusion energy, and maglev trains.

In the climate and energy sector, the government will support R&D for the development and commercialization of solar glass (BIPV, building-integrated photovoltaics), and will also develop high-voltage direct current (HVDC) technology for long-distance submarine power transmission and wind power integration technologies. The government will support the development and demonstration of SMRs, regarded as a next-generation energy source, and aims to obtain standard design approval by 2028. In agriculture and fisheries, the government is preparing for an AI-based transformation. In the second half of this year, one aquaculture complex will be designated as an innovation-leading district, and in the first half of next year, one smart agriculture development zone will be selected for AI and big data-based precision growth and breeding management projects.

Investment will also be expanded to spread the "K-Boom Up" phenomenon. The government will provide top-priority support in all areas-finance, taxation, funding, workforce, and infrastructure-to strengthen Korea's high value-added industries that are growing globally, such as K-content (games, webtoons), K-bio and pharmaceuticals, K-beauty, and K-food.

To support the ultra-innovative economy, the government plans to establish a so-called National Growth Fund of over 100 trillion won to provide systematic support for all initiatives. The fund will consist of 50 trillion won each from private capital, such as pension funds, and government-guaranteed strategic industry funds. A government official stated, "The AI Grand Transformation is a comprehensive national response," adding, "With companies leading and the government providing support, Korea's economy will take another leap forward through AI."