IITP recognizes domestic AI chip ecosystem growth as Korea's top R&D achievement

Hong Jin-bae, president of the Institute of Information & Communications Technology Planning & Evaluation (IITP), speaks during a press conference in Seoul, Wednesday. Korea Times photo by Nam Hyun-woo

The growth of Korea’s domestic artificial intelligence (AI) chip ecosystem is recognized as the country’s top research and development achievement in the field of information technology, the Institute of Information & Communications Technology Planning & Evaluation (IITP) said Wednesday.

During a media conference, IITP, the policy-planning and management arm of the Ministry of Science and ICT, selected Korean firms’ improved presence in AI computing infrastructure, AI model developments, expanded AI transformation and nurturing researchers as noteworthy policy achievements.

"Research and development, along with talent cultivation, are key drivers of Korea's competitiveness in AI and ICT," IITP President Hong Jin-bae said. "We will further strengthen our performance-oriented R&D support system to ensure that the AI and information and communication technology achievements accumulated over the years translate into industrial growth and tangible benefits for people's lives."

Since 2020, the government has been making R&D investment worth over 470 billion won ($310.7 million) in the fields of advanced semiconductors, such as neural processing units (NPU) and processing-in-memory semiconductors.

This resulted in AI chip firms securing a prominent spot in the global AI industry, including FuriosaAI, Rebellions, DEEPX and Mobilint.

FuriosaAI and Rebellions are widely regarded as leading NPU firms, having secured more than 800 billion won and 640 billion won in investments from some of the world's leading tech companies, respectively. DEEPX and Mobilint have also emerged as notable players in on-device and edge AI chips. DEEPX has expanded its presence overseas, exporting its products to eight countries, including China through a partnership with Baidu.

"Except for the United States, there are very few countries that have capabilities covering both server and edge AI chips," Hong said. "It is highly meaningful that Korea has built a foundation to challenge the top players in the era of AI inference through proactive R&D investments."

FuriosaAI's RNGD artificial intelligence processor / Courtesy of FuriosaAI

Hong said AI policy efforts have led to progress in the on-device AI market, with companies such as Maum AI entering the U.S. market with physical AI solutions designed for on-device applications.

He added that the government will focus its policy support this year on the development of agentic AI in four areas: workplace innovation, simulation-based design support, everyday consultation services and medical ultrasound analysis.

Hong also said the defense sector will accelerate the adoption of AI technologies. To that end, the government plans to establish multiple cooperation centers in Korea with the aim of fostering a domestic defense AI ecosystem similar to that of U.S.-based Palantir Technologies.

Hong said IITP will step up efforts to nurture AI talent by selecting 10 AI-focused universities and 10 graduate schools specializing in AI transformation. The institute this year plans to allocate a total of 1.9 trillion won of state R&D budget on technology development, nurturing research and other policy support for the domestic AI industry.