Government to promote 'K-AI Package' with subsidized ODA, supporting data centers and power facilities

South Korea is set to introduce the 'K-AI Package,' a new initiative that combines its advanced artificial intelligence technology with data centers and power infrastructure, offering it to developing nations through subsidized Official Development Assistance (ODA). The program aims to foster industrial growth in recipient countries while simultaneously creating overseas market opportunities for South Korean AI companies.

Deputy Prime Minister and Minister of Economy and Finance, Gu Yun-cheol, announced the plan at a meeting of economy ministers. "To enhance the growth potential of developing countries and contribute to realizing a global AI-ready society, we will promote the K-AI Package based on subsidized ODA," he stated. Subsidized ODA involves the South Korean government providing long-term, low-interest loans to support the economic and social development of recipient nations.

The K-AI Package is envisioned to provide integrated support, going beyond basic infrastructure like hospitals and power plants. It will include the necessary AI technology, data centers, and power supply facilities for operating these infrastructures. For instance, projects could involve building dams or water supply systems equipped with AI for managing water usage and quality, alongside the necessary data centers and renewable energy facilities to power them.

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To enhance the growth potential of developing countries and contribute to realizing a global AI-ready society, we will promote the K-AI Package based on subsidized ODA.

The AI technology support will concentrate on seven key sectors where South Korea holds a competitive edge: water resources, health, energy, transportation, agriculture, culture, and education. Funding for the initiative will primarily come from the Economic Development Cooperation Fund (EDCF), a government-backed fund designed to provide long-term, low-interest loans to developing countries to aid their industrial development and improve living conditions.

During the meeting, discussions also touched upon trade issues with the United States and investment progress. The Deputy Prime Minister affirmed, "Our government is reviewing the commercial rationality of investment projects with the U.S. We will manage our trade relations with the U.S. stably by closely consulting with the U.S. side, prioritizing national interests."

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Our government is reviewing the commercial rationality of investment projects with the U.S. We will manage our trade relations with the U.S. stably by closely consulting with the U.S. side, prioritizing national interests.