Gov't, Korea's three telecom giants join hands to invest in AI

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Gov't, Korea's three telecom giants join hands to invest in AI

Published: 13 Aug. 2025, 10:19 Updated: 13 Aug. 2025, 11:29

Audio report: written by reporters, read by AI

Minister of Science and ICT Bae Kyung-hoon poses with heads of Korea's major telecommunications companies and related institutions at an event held on Aug. 12 at the Westin Josun Hotel in Jung District, central Seoul. From left are: Yoo Ji-sang, chairman of the Korea IT Fund investment operations committee; Lee Chul-hoon, vice president of LG Uplus; Ryu Young-sang, CEO of SK Telecom; Minister Bae; Kim Young-shub, CEO of KT; and Song Jae-Sung, vice president of the Korea Telecommunications Operators Association. [YONHAP]

The government and Korea’s three major telecommunications companies are partnering up to expand domestic investment in AI, with over 280 billion won ($202 million) of investment promised by the three companies in AI.

The Ministry of Science and ICT announced a joint event with the heads of domestic telcos at the Westin Josun Hotel in central Seoul to announce joint investment plans and a commitment to collaborate on AI development.

Attendees included Science Minister Bae Kyung-hoon, chiefs of the Korea IT Fund (KIF), the vice chairman of the Korea Telecommunications Operators Association — which oversees KIF’s operations — and the chairman of the KIF Investment Operations Committee.

KIF — a private master fund established in 2002 with a combined 300 billion won investment from SK Telecom, KT and LG U+ — finances sub-funds that support domestic information and communications technology startups. As of last year, it had created 91 feeder funds and invested 4.7 trillion won in 1,669 promising ICT startups. Originally set to operate until 2030, its life span has been extended to the end of 2040, with new feeder funds to be launched starting this year.

While KIF has traditionally invested in software, ICT and technology commercialization, it will now focus on AI.

The master fund will inject 150 billion won this year, with limited partners contributing an additional 150 billion won, to create feeder funds worth over 300 billion won. More than 240 billion won will be allocated to fostering AI core and base technologies, as well as AI transformation companies. This includes a 40 billion won AI semiconductor-dedicated fund and a 20 billion won fund for promoting ICT technology commercialization and spreading the results. KIF aims to direct 90 percent of the 300 billion won toward AI to align with the government’s goal of becoming one of the world’s top three AI powers.

“We will support private sector projects by offering tax cuts for investments in AI data centers and other related facilities and improving regulations,” said Minister Bae. “We will work as one team with the three telecom firms to revitalize the AI ecosystem.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom staff.
BY KIM NAM-YOUNG [[email protected]]