South Korea Unveils Mega Growth Strategy Including AI Highway Development and Energy System Revamp
South Korea has unveiled a five-year national governance plan under President Lee Jae-myung, focusing heavily on artificial intelligence (AI), renewable energy, and industrial innovation to drive economic growth and sustainability.
The plan aims to establish South Korea as one of the world's top three AI powers by 2030. The government plans to accelerate AI application across 30 major projects, covering AI robots, autonomous vehicles, ships, and AI integration in welfare and employment services. The strategy includes AI adoption in all administrative services by 2030. Investment of about 210 trillion won over five years will support these initiatives, fostering technological advancements and raising the potential GDP growth rate to around 3%.
To achieve this, the government plans to swiftly establish an "energy expressway" to help industries achieve RE100 and advance carbon neutrality and climate resilience. The strategy also includes a "sunlight and wind pension" model for community participation in renewable energy expansion. Focused support on mega-regions as growth engines will be provided, along with expanded investment promotion subsidies.
The plan also calls for intensive startup incubation to stimulate economic growth. A financial ecosystem will be nurtured where ventures and SMEs can drive innovation. Greater venture capital investment is called for in the blueprint to energize the economy.
Support for small and medium enterprises (SMEs) and small business owners is intensified. The plan encourages venture capital investments from public pension funds to expand the venture ecosystem and promotes AI usage by SMEs to boost productivity. Measures to improve fairness and reduce industrial accidents are also included. Additionally, restructuring plans are required for major petrochemical companies to enhance competitiveness and reduce production capacity in certain sectors, reflecting efforts to modernize industry.
Regulations in key fields like AI, biohealth, and renewable energy will be eased or removed to spur regional innovation. A growth ladder program is included in the blueprint to help small and medium-sized enterprises evolve into global players.
The plan also includes capital market transparency with a one-strike policy for unfair trading and legislative reforms. The goal is to create the world's leading AI-driven government. The nation aims to be among the world's top five in science and technology.
To achieve this, Korea will expand its research and development budget, support long-term basic research, and systematically train and attract top talent. Strategic industries such as AI and biohealth will serve as new growth engines. The innovation economy strategy outlined by the committee positions Korea as a global leader in technology, with artificial intelligence at its core.
Key measures include building an "AI expressway," fostering an independent AI ecosystem, and securing leadership in next-generation AI semiconductors and foundational technologies. The government plans to strengthen personal data protection, prevent misuse, and expand the open release of public data to bolster trust in AI.
Approximately 100 trillion won (~$71.56 billion) is earmarked for key strategic sectors, including AI and renewable technologies. The government is also investing in a national AI foundational model and planning to build the largest data center by 2028 to compete globally in AI.
The State Affairs Planning Committee has unveiled President Lee Jae Myung's five-year blueprint for national governance. Wednesday's announcement set out five policy goals, 23 strategic initiatives, and 123 national tasks, each backed by detailed action plans developed over the past two months. A 100 trillion won ($72 billion) national growth fund will be mobilized to channel investment into future industries.
- The government's strategy for renewable energy includes the creation of an "energy expressway" to aid industries in achieving RE100, a move aimed at driving carbon neutrality and climate resilience.
- To foster technological advancements in the renewable energy industry, a "sunlight and wind pension" model is being proposed, encouraging community participation in renewable energy expansion.
- The national governance plan also identifies artificial intelligence (AI) and renewable energy as strategic industries, with investments of around 100 trillion won allocated for their growth, including building a national AI foundational model and the largest data center by 2028.
