South Korea Mandates Domestic AI Models in $7.2 Billion Public Access Push
Seoul is providing uncapped generative AI to all citizens while requiring operators to route 80 percent of queries through local models, creating a protected market that challenges US tech dominance.
South Korea will provide its entire population with free, uncapped access to premium generative artificial intelligence under a new "AI for All" initiative. The government has selected three tech consortia, including the country’s two largest telecom operators and the parent company of Kakao, to deliver the services starting with beta tests in September.
To support this infrastructure, the Ministry of Science and ICT will distribute up to 512 Nvidia B200 chips among the chosen groups and subsidize their operating costs. This rollout aligns with President Lee Jae Myung’s administration earmarking $7.2 billion for AI spending in 2026, tripling the previous year’s commitment.
The program’s core strategic significance lies in its strict routing requirements designed to break reliance on foreign technology. Operators must direct at least half of all user queries through certified Korean foundation models, with another 30 percent routed to models built by other domestic firms. Foreign models will only be permitted when deemed strictly necessary by the ministry, and such usage will receive no government subsidy.
This mandate constructs a regulatory moat around local developers in a market already saturated with AI adoption. Approximately 23 million South Koreans regularly use generative tools, but the vast majority rely on foreign free tiers. Ministry tender documents show ChatGPT held 23.45 million Korean users in April, compared to 8.45 million for Gemini and 2.41 million for Claude.
For global tech investors, the policy signals a deliberate state-led effort to fracture the market share of US-based AI providers. While approximately 23 million citizens use these tools regularly, only about 1.8 million people in the country currently pay for them, presenting a massive subsidized user base for local firms to capture.
Seoul’s approach differs markedly from other sovereign AI strategies currently unfolding globally. While the European Commission’s InvestAI initiative and India’s AI Mission focus on subsidizing compute infrastructure and homegrown model development, South Korea is bypassing the backend to directly distribute the finished product to consumers.
The integrated tools will be embedded into existing government and commercial systems to drive daily adoption. Practical applications will include assisting citizens with booking medical appointments, navigating tax advice, and helping small businesses identify state support schemes.
