S.Korean gov't unveils $424 mn strategy to boost software, AI industries

South Korean government has announced plans to invest about 563 billion won ($424 million) in bolstering the domestic software and artificial intelligence (AI) industries. The initiative, unveiled during an Emergency Economic Ministerial Meeting on Friday, aims to support the establishment of 250 software companies with annual revenues of at least 100 billion won by 2027 and the development of 10,000 software as a service (SaaS) companies by 2026.

The Ministry of Science and ICT (MSIT) has presented a joint 'Software Promotion Strategy' to strengthen the digital foundation and facilitate overseas expansion. This plan is designed to adapt to rapid environmental changes, such as the widespread adoption of AI technologies like ChatGPT, and reinforce the digital industry's core competencies.

To enhance national software capabilities, MSIT intends to increase the number of AI and AI Convergence Innovation Graduate Schools from 15 to 22 by 2025 and Metaverse Graduate Schools from 2 to 10 by 2026. Moreover, MSIT aims to train 200,000 advanced software and AI professionals by 2027 to prepare for generative AI technologies such as ChatGPT.

In addition to educational initiatives, the South Korean government will invest 30.5 billion won in SaaS businesses this year. Starting in 2023, new projects will be launched to support the development and commercialization of innovative service-based software that utilizes generative AI. AI-based digital textbooks are slated for introduction in schools from 2025, with financial support provided for their development as service-based software.

As part of this ambitious plan, the government seeks to increase the number of software companies with annual sales of 100 billion won from 145 in 2021 to over 250 by 2027.

Science and ICT Minister Lee Jong-ho emphasized the importance of strengthening software as a foundation for driving innovation and growth in digital technologies.

"The government will focus on major policies, including digital talent development, basic technology development, and system improvement, to establish South Korea as a leading digital model country," he said.

Write to Jin-Won Kim at jin1@hankyung.com