Korea to build homegrown AI chip-powered data centers to foster growth engines

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, third from right, speaks while presiding over a meeting of economy-related ministers at Government Complex Seoul, Thursday. Yonhap

By Yi Whan-woo

Korea will speed up efforts to build data centers powered by locally-developed artificial intelligence (AI) chips on its path to nurture the next growth engines.

The country will also build a frequency band exclusively for urban air mobility (UAM) to take a leading role in setting criteria for the operation of the mobility technology. UAM is characterized by unmanned, wireless flight control systems that launch and land in urban areas to transport passengers and cargo.

Announced during a meeting of economy-related ministers at the Government Complex Seoul, Thursday, the plans come as trade-reliant Korea is desperately seeking to tackle sluggish exports by bolstering support for its technology-driven businesses.

“The pace of export decline has eased recently but relevant ministries should still work together for exports to bounce back,” Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said presiding over the meeting at Government Complex Seoul.

He referred to the 10th consecutive month fall in exports through July, due to weakened global demand for semiconductors, petrochemicals and key items.

“The government will take proactive measures to lift regulations that hinder investment and the growth of emerging industries,” Choo added.

Concerning AI chips, the finance minister promised to expand support for startups in the logic semiconductor sector in making prototypes.

He said that the frequency band for UAM should be able to provide information on real-time traffic conditions and weather, among other things.

A government-run task force will be launched to serve the goal.

Autonomous cars are also drawing attention as a future mobility technology. The government will revise a law on privacy to allow carmakers to utilize video footage filmed by vehicles to collect relevant data.

Used batteries for electric vehicles (EVs) will be re-grouped as a recyclable resource to contribute to sustainable growth. Currently, they are grouped as disposable waste.

To facilitate corporate innovation, the prime minister said the government will spend 7.2 trillion won ($5.38 billion) on seven projects.

They include forming a state-run biotechnology cluster on 413,200 square meters of farmland in Osong, North Chungcheong Province and setting up a hydrogen charging station near a railroad.