{"id":2206698,"date":"2024-10-07T18:51:40","date_gmt":"2024-10-07T09:51:40","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206698"},"modified":"2024-10-08T16:05:43","modified_gmt":"2024-10-08T07:05:43","slug":"south-koreas-ai-strategy-faces-global-competition-and-political-roadblocks","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/10\/south-koreas-ai-strategy-faces-global-competition-and-political-roadblocks\/","title":{"rendered":"South Korea\u2019s AI strategy faces global competition and political roadblocks"},"content":{"rendered":"

South Korea\u2019s presidential office launched the <\/span>National AI Committee<\/span><\/a> at the end of September to advance its artificial intelligence (AI) strategy, adopting a flexible regulatory framework as it looks to become a top three player in this space.<\/span><\/p>\n

But the decision to launch the committee arguably reflects ROK political division more than the exigencies of the emerging AI industry. There are currently <\/span>six AI-related bills<\/span><\/a> proposed in the National Assembly, but lawmakers are still in the process of gathering opinions regarding the bills\u2019 regulatory content.<\/span><\/p>\n

On the one hand, the decision to focus on presidential committees allows the administration to set guidelines and coordinate public-private sector cooperation. In a fast-evolving field like AI, where technological advancements can quickly render laws obsolete, this approach offers businesses the flexibility to adapt relatively quickly.<\/span><\/p>\n

For businesses, this regulatory flexibility provides a less restrictive operating environment. Companies in sectors such as AI semiconductors, telecommunications and health care can explore new applications without the burden of compliance with slow-moving legislation.\u00a0<\/span><\/p>\n

South Korea\u2019s global partnerships, such as the <\/span>U.S.-ROK AI working group<\/span><\/a>, will also allow businesses to benefit from international collaboration.<\/span><\/p>\n

However, the absence of formal legislation means that businesses may face uncertainty regarding issues like data protection, intellectual property and AI accountability. It could also create ambiguities in international markets, where companies are required to comply with more stringent regulations, such as the <\/span>EU\u2019s AI Act<\/span><\/a>.<\/span><\/p>\n

This regulatory gap may hinder South Korean firms from competing globally as they may struggle to meet the compliance requirements of stricter regulatory environments.<\/span><\/p>\n

SETTING AI INVESTMENT PRIORITIES<\/b><\/p>\n

The National AI Committee is tasked with setting investment priorities that align with South Korea\u2019s goal of becoming a top three AI power. To that end, the committee is structured to bring together both public and private sector experts, with 30 private-sector leaders and 10 ministers from key government departments.<\/span><\/p>\n

The focus on AI semiconductors reflects Seoul\u2019s plan to leverage its existing strengths in semiconductor manufacturing to gain an edge in <\/span>AI hardware development<\/span><\/a>.<\/span><\/p>\n

The global AI semiconductor market represents a significant opportunity for South Korea. By focusing on developing AI chips, the government can strengthen industries such as health care, defense and telecommunications, where AI-driven innovation is critical.<\/span><\/p>\n

However, global competitors such as the U.S., China and the EU are not only investing heavily in AI but also creating comprehensive regulatory frameworks to support these investments. Without strong, coordinated efforts, South Korean firms may struggle to keep pace with their global rivals.<\/span><\/p>\n

The size of the National AI Committee could also present challenges. While more nimble than the National Assembly, <\/span>bureaucratic delays<\/span><\/a> could still slow the implementation of key investment strategies.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol meets with OpenAI CEO Sam Altman at the Presidential Office on June 9, 2023 | Image: ROK Presidential Office<\/em><\/p><\/div>\n

PUBLIC-PRIVATE COLLABORATION<\/b><\/p>\n

The inclusion of private-sector experts on the committee is intended to ensure that the government\u2019s AI policies reflect market realities and align with business needs.<\/span><\/p>\n

This collaboration is key to accelerating AI development as private-sector experts will likely bring industry insights that help shape policies that are practical and targeted. By engaging directly with businesses, the government can ensure that its AI strategy supports innovation and investment.<\/span><\/p>\n

The public-private collaboration will also likely help to steer the country\u2019s planned <\/span>semiconductor mega cluster<\/span><\/a>. By pooling resources and expertise, both sectors can create a more robust AI ecosystem, ensuring that South Korea remains competitive in the global AI race.<\/span><\/p>\n

However, public-private collaboration is not without risks. The priorities of the government and the private sector do not always align. While businesses will likely focus on profit-driven applications, the government may prioritize <\/span>national security<\/span><\/a> applications that may have lower returns on investment.<\/span><\/p>\n

This misalignment could lead to friction within the committee, slowing down decision-making or resulting in policies that fail to meet the needs of both parties.<\/span><\/p>\n

Moreover, there is a significant risk that smaller companies will be overshadowed by larger corporations on the committee with greater resources and influence. These firms may dominate discussions, leading to policies that favor established players at the expense of smaller, innovative startups.<\/span><\/p>\n

This could limit the overall dynamism of South Korea\u2019s AI industry, reducing its ability to foster new entrants and disruptive technologies.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol listens to U.S. Vice President Kamala Harris’ remarks during the AI Seoul Summit in May 2024 | Image: ROK Presidential Office<\/em><\/p><\/div>\n

GLOBAL COMPETITION<\/b><\/p>\n

South Korea\u2019s strength in AI semiconductors and its international collaborations give it a competitive advantage in the global AI market. By focusing on its core strengths and fostering strategic partnerships, such as those with the U.S., South Korea can carve out a <\/span>niche in AI hardware development<\/span><\/a>.<\/span><\/p>\n

These collaborations provide access to cutting-edge technologies and markets that will be crucial for the country\u2019s AI growth.<\/span><\/p>\n

However, South Korea is vulnerable to geopolitical risks, particularly in its relationships with the U.S. and China. Trade tensions between these two global powers could disrupt South Korea\u2019s supply chains and hinder its ability to maintain a competitive edge.<\/span><\/p>\n

While South Korea has used its position as the <\/span>chair of the Minerals Security Partnership<\/span><\/a> to diversify its supply chains, China\u2019s dominance in the mineral sector and the ROK\u2019s proximity to the country make Seoul susceptible to geopolitical tensions.<\/span><\/p>\n

Additionally, South Korea <\/span>lags behind<\/span><\/a> advanced countries in nurturing artificial AI talent, which could limit its ability to become fully self-sufficient in the sector.<\/span><\/p>\n

There is also the risk that South Korea\u2019s AI strategy may not keep pace with the rapid advancements being made by its global competitors. The U.S., China and the EU are all pouring resources into AI development, and Seoul will need to continuously adapt its strategy to stay ahead.<\/span><\/p>\n

The launch of the National AI Committee reflects the country\u2019s ambitions to become a global leader in AI. However, the path forward is fraught with challenges.<\/span><\/p>\n

The success of South Korea\u2019s AI strategy will ultimately depend on its ability to balance innovation with effective governance to remain relevant in an increasingly competitive industry.\u00a0<\/span><\/p>\n

Edited by Alannah Hill<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korea\u2019s presidential office launched the National AI Committee at the end of September to advance its artificial intelligence (AI) strategy, adopting a flexible regulatory framework as it looks to become a top three player in this space. But the decision to launch the committee arguably reflects ROK political division more than the exigencies of […]<\/p>\n","protected":false},"author":10909,"featured_media":2206699,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,27,29],"class_list":["post-2206698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-domestic-politics","tag-technology-cyber"],"yoast_head":"\nSouth Korea\u2019s AI strategy faces global competition and political roadblocks - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/10\/south-koreas-ai-strategy-faces-global-competition-and-political-roadblocks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea\u2019s AI strategy faces global competition and political roadblocks - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea\u2019s presidential office launched the National AI Committee at the end of September to advance its artificial intelligence (AI) strategy, adopting a flexible regulatory framework as it looks to become a top three player in this space. 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