SEOUL, January 01 (AJP) -South Korea is entering 2026 with a renewed push to reset its growth model around artificial intelligence, as the government and corporate leaders converge on AI-led productivity and solution-based innovation as the country’s next economic engine, according to New Year's addresses by key officials from the government and private sector.
In his New Year’s address Thursday, President Lee Jae Myung raised urgency on a national transition beyond recovery and incremental growth toward structural change powered by technology.
“Now we are only at the starting line,” Lee said, “Because we started late, we must now run faster.” He pledged to make 2026 “the first year of a great leap forward,” calling for a fundamental shift in the country’s growth paradigm.
Lee stressed that Korea can no longer rely on familiar development paths, saying the country must “completely change the growth paradigm” and move onto “a new road of transformation.” Growth, he said, should be driven not by concentration or scale alone, but by innovation, decentralization and new engines of productivity.
At the core of that transformation is artificial intelligence, which policymakers increasingly view as essential infrastructure rather than a standalone technology.
Deputy Prime Minister and Science and ICT Minister Bae Kyung-hoon described AI as a decisive factor for national survival in the coming decade. “Information security has become a prerequisite for the survival of both nations and companies in the AI era,” he said, signaling a tougher stance on governance as AI adoption accelerates.
Bae defined 2026 as a turning point for science and technology policy, saying the government will push forward an “AI basic society” in which “all citizens can enjoy the benefits of artificial intelligence.”
Rather than focusing only on cutting-edge research, the government is emphasizing practical, solution-oriented AI that directly raises productivity across the economy.
The science ministry plans to secure world-class domestic AI models and deploy them across manufacturing, shipbuilding, logistics and other core industries to accelerate digital transformation. AI-based public projects will be expanded so citizens can experience tangible improvements in daily life.
“We will promote AI transformation across key industries and expand AI-based livelihood projects so people can feel real change,” Bae said.
Nationwide AI education programs, competitions and training initiatives will be expanded to ensure broad participation, while startups and young entrepreneurs will receive targeted support to translate ideas into viable businesses.
A central pillar of the strategy is the creation of a “full-stack K-AI ecosystem,” linking semiconductors, software, data, platforms and services into a single value chain.
The government plans to accelerate global expansion of Korean AI companies while strengthening the ecosystem that connects chips, infrastructure and applications. Officials say this approach is intended to move Korea beyond its traditional role as a component supplier toward becoming a provider of integrated AI solutions.
This direction closely mirrors the private sector’s message. SK Group Chairman Chey Tae-won said AI is already reshaping global industry and will define competitiveness going forward.
“AI is no longer a distant future but a reality that has entered deep into our daily lives,” Chey said in his New Year’s message. “The era of AI has only just begun, and the opportunities ahead will be far greater than we can imagine today.”
He said SK aims to become a leader in the global AI ecosystem by offering integrated AI solutions rather than isolated technologies. “AI innovation is not limited to semiconductors,” he said, stressing that energy, telecommunications, construction and bio businesses can all serve as foundations for AI-driven value creation.
Chey added that successful transformation depends on strengthening core businesses first. “We must solidify the fundamentals of what we already do well and layer AI innovation on top of them to create differentiated value,” he said.
As AI adoption accelerates, the government is also tightening its stance on cybersecurity and accountability.
Bae warned that cyber threats linked to AI pose structural risks, saying the government would “respond at the national level” to hacking and security breaches. He said corporate leaders will face clearer legal responsibility for security failures, and repeated incidents could result in punitive penalties.
The goal, he said, is to ensure that trust and safety become the foundation of AI-driven growth rather than an afterthought.
The government plans to expand regionally autonomous R&D budgets and establish AI-based innovation clusters linked to local industries. Large-scale demonstration projects will anchor these hubs, enabling regions to develop sustainable growth engines tailored to their industrial strengths.
This aligns with President Lee’s broader vision of moving away from a capital-centric structure toward a more distributed growth model, in which multiple regions serve as engines of innovation.
Alongside AI, the government highlighted biotechnology, quantum technology and nuclear fusion as next-generation strategic sectors. A so-called “K-Moonshot” initiative will support long-term, high-risk research aimed at securing core technologies essential for future competitiveness.
Bae emphasized that science and technology are central to overcoming Korea’s low-growth trap. “Science and technology are the key tools to unlock our economic potential,” he said, pledging stronger institutional support for basic research, scientists and young talent.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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