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AI Around the World: South Korea

  • Writer: Arian Okhovat Alavian
    Arian Okhovat Alavian
  • Apr 10
  • 3 min read

What Europe can learn from a digital front-runner

Cityscape of Seoul at sunset with the text “AI Around the World: South Korea – 대한민국 – PANTA RHAI” in white font overlaid in the foreground.

 

Most people associate South Korea with K-pop, high-speed internet, and Samsung. But what’s often overlooked is this: the country has long been a key hub in global AI development—technically, politically, and economically. And that’s no coincidence. South Korea invests strategically in future technologies, systematically supports talent, and maintains a remarkably clear-eyed view of the risks posed by artificial intelligence.


It’s worth taking a closer look—not just because of the country’s impressive innovation power, but also because of the questions it raises:How do you regulate technology without stifling it?How do you build trust without being naïve?And how do you strike a balance between industrial policy and social progress?


The Foundation


98% of the population is online, smartphone usage is nearly universal, and 5% of GDP is invested in research—South Korea is digital down to its core. At the same time, it’s a global leader in memory chips and robotics. This combination—robust infrastructure, industrial depth, and an innovation-friendly population—makes the country an ideal testbed for widespread AI adoption.

A moment of self-reflection came in 2016, when AlphaGo defeated Go champion Lee Sedol—a national shock, and a wake-up call. The government responded quickly, restructuring funding programs, launching a national AI strategy, building data centers, and connecting universities with industry. The goal: not to play catch-up, but to help shape the future.


AI in Everyday Life


What’s still in pilot stages elsewhere is often already reality in South Korea:


  • In healthcare, AI systems like those from Lunit and Coreline Soft assist in cancer diagnostics—not only in Korea, but in European hospitals too.

  • In industry, smart factories at Hyundai and POSCO enhance production and quality—supported by government programs for small and medium-sized enterprises.

  • In banking and platforms, AI models like NAVER’s HyperCLOVA power language, search, and recommendations. It’s not an imported model, but a regional one—on par with GPT-3, developed for and in the region.

  • Even the public sector is getting involved: from AI-assisted traffic management in Seoul to the test city of Gwangju, where new technologies are piloted in real-world settings.


Progress with Boundaries


South Korea proves that a country can not only promote AI, but shape it. As early as 2020, the government published AI ethics guidelines with principles like fairness, transparency, and data protection. In 2023, it passed the first national AI law outside of Europe: the “AI Basic Act” regulates high-risk applications, demands traceability, and creates government oversight bodies.


Of course, there have been missteps. The case of chatbot “Lee Luda”—an AI avatar trained on real user data without consent—sparked public outcry and led to sanctions. Facial recognition during pandemic control also triggered debates around surveillance and privacy. What stands out is South Korea’s willingness to learn from such incidents—and to take political action.


Looking Ahead


The direction is clear: South Korea aims to rank among the top 3 AI nations worldwide. To that end, the government is investing over 7 billion USD in AI hardware, including specialized chips for neural networks. Giants like Samsung and SK Hynix are following suit, building factories, data centers, and R&D units.


A massive education campaign is running in parallel: by 2026, one million people are expected to be trained in digital skills—from schoolchildren to mid-career professionals. Internationally, the country positions itself as a bridge-builder: at global AI summits, through academic partnerships with universities like NYU, and as an active member of OECD and UN bodies.


What Europe Can Take Away


South Korea shows that progress doesn’t need to be loud. That government involvement doesn’t mean stagnation. And that trust in technology can grow—if transparency is upheld, debates are encouraged, and mistakes are acknowledged.

For Europe, that means: we don’t need to copy the South Korean model. But we can draw inspiration—from a country that moves forward pragmatically, without abandoning its principles. That bets on talent, not just tech. And that shows: digital sovereignty doesn’t start with grand declarations, but with consistent action.


Next Stop in the AI Around the World Series? Maybe Canada. Maybe Kenya. The journey has just begun.


 

AI Around the World is a new series by PANTA RHAI. In each edition, we take a deep dive into one country: How is AI understood, promoted, regulated, and used there? We tell stories about technology and society, about political strategies and practical applications. Not from a bird’s-eye view, but up close. Because if we take artificial intelligence seriously, we must think globally—and understand it locally.

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