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South Korea Invests $390 Million in Domestic AI Companies to Challenge OpenAI and Google

South Korea has launched a ₩530 billion ($390 million) sovereign AI initiative, funding five local companies to develop large-scale foundational models that can compete with global AI giants. The government will review progress every six months and narrow the field to two frontrunners, with companies like LG AI Research, SK Telecom, Naver Cloud, and Upstage developing Korean-language optimized models.