The Ministry of Science and ICT will advance the Frontier AI project alongside the third phase evaluation of the Independent AI Foundation Model (IAFM) in February 2027.
According to the ministry, applications for the Frontier AI development project will open in December, with a deadline set for February to coincide with the announcement of the final IAFM operators. Experts have suggested that only companies with sufficient capital, technology, and expertise should lead the development of frontier-level AI, and the final IAFM operators will also be included in this initiative.
During the third evaluation of the IAFM, two out of the three participating teams (SK Telecom, LG AI Research Institute, and Upstage) will be selected.
A ministry official stated, "The evaluation of the IAFM and the selection of the Frontier AI model development operators will proceed sequentially in February. Following that, we plan to enter the financial review process required for investment by the Industrial Bank of Korea."
According to the ministry's budget proposal, 4.625 trillion won will be allocated to support the development of the Frontier AI model. Approximately 3.85 trillion won is earmarked for purchasing NVIDIA graphics processing units (GPUs), 750 billion won for securing training data, and 25 billion won for attracting AI talent. All three initiatives will be supported through corporate investments.
However, the National Assembly Budget Office has projected that the establishment of the development corporation may occur around October 2027. Even if the application process proceeds smoothly, the establishment of a special purpose corporation (SPC) may take time, and delays in selecting operators could extend the timeline beyond a year.
The Budget Office cited the case of the National AI Computing Center construction project, where private sector participation was lacking, leading to two failed application rounds. In the third round, a consortium led by Samsung SDS submitted a sole bid. The SPC was established about 17 months after the government announced its execution plan, in June.
The Budget Office warned that delays in establishing the corporation for the Frontier AI project could also postpone formal investments and new GPU support. Although the ministry has prepared a substantial budget for rapid model development, there are concerns that a lack of clarity on the GPU quantities and timing of support could lead to development gaps.
To expedite the project, the ministry is considering supporting existing GPUs before the corporation is established. A provisional plan has been developed to allocate approximately 14,000 of the 16,400 GPUs purchased by the government to the national AI project, but the specific allocation for Frontier AI has yet to be determined.
A ministry official remarked, "We must consider the needs of academia, industry, and other government departments, and we plan to finalize the specific allocation direction by the end of the year."
* This article has been translated by AI.
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