South Korea's National Growth Fund Invests 560 Billion Won in Local AI Firm Upstage

The South Korean government's significant investment of 560 billion won in Upstage, a homegrown AI company, signals a strategic push to bolster our nation's capabilities in the rapidly evolving field of artificial intelligence. This direct equity investment, facilitated by the National Growth Fund, underscores a national commitment to fostering indigenous AI technologies and ensuring our competitiveness on the global stage.

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The National Growth Fund will directly invest 560 billion won in the domestic technology-based independent artificial intelligence company 'Upstage' to strengthen the competitiveness of its proprietary artificial intelligence models.

Upstage's recognition as a unicorn, valued at over 1 trillion won, and its unique position as the sole venture and small business to pass the initial evaluation for the government's 'Proprietary AI Foundation Model' project, highlight its potential. The investment's focus on enhancing Korean-language AI models and securing vast, high-quality datasets is crucial. By collaborating with domestic portal companies, we aim to build a robust foundation for AI development that is tailored to our linguistic and cultural context, moving away from over-reliance on foreign technologies.

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This investment is aimed at advancing the performance of artificial intelligence models specialized in Korean and securing data.

Beyond Upstage, the approval of the national AI computing center in Solasido, Jeonnam, marks another significant step. This project, a public-private joint venture, will establish a state-of-the-art infrastructure equipped with advanced AI semiconductors like GPUs and NPUs. Providing this computing power will be instrumental in supporting research and industrial advancements across various sectors, solidifying South Korea's position as a leader in AI infrastructure.

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Industrial ripple effects are large and the project has significant industrial policy meaning.

Furthermore, the parallel support extended to key industries such as secondary batteries, bio, and semiconductors—through investments in companies like Posco Future M's subsidiary, Estrogen Bio, and Hwaseong—demonstrates a holistic approach to industrial policy. This comprehensive strategy, totaling 8.4 trillion won in approved projects by April, reflects our government's dedication to nurturing strategic industries and driving economic growth through technological innovation. The National Growth Fund's commitment to regularly identifying and supporting 'mega projects' with significant industrial ripple effects is a testament to our forward-looking vision.

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We will select projects with large industrial ripple effects and significant industrial policy meaning and periodically announce them as mega projects, and provide constant support for various funding demands.