Kakao and LG Uplus have confirmed their bids, while Naver, SK Telecom and KT are weighing entry, industry sources said on Tuesday.
AI startups and mid-sized firms are also sounding out consortium tie-ups, sharpening a fast-forming rivalry.
The Ministry of Science and ICT opened the public tender on Sunday, running it through Aug. 11, and plans to pick two to three operators. Winners must launch a nationwide general-purpose AI chatbot within the year, alongside public-service AI agents and specialized offerings.
Bidders must build their services on domestic models, using homegrown AI that meets independent foundation-model standards for at least half of the system.
Even firms with their own models must draw on rival Korean models for a further 30 percent, while foreign models are permitted only sparingly and excluded from state support.
To ease the burden, the government will supply up to 512 of Nvidia's DGX B200 GPUs this year and, from 2027, cover operating costs from the state budget. In return, participants must forge their own revenue streams from the prompt data they accumulate.
The lure is clear: low upfront costs, a vast pool of user data that doubles as fuel for model training, and a nationwide reference case prized in future public and corporate markets.
Startups such as Upstage, which owns the Solar model, and NC AI, game maker NC's AI arm, are among those circling.
Yet the risks run alongside the rewards. The domestic-model quota complicates consortium-building, and GPU support beyond this year, covering 2027 to 2030, hinges on talks between ministries and the National Assembly, leaving medium-term funding uncertain.
The ministry aims to select operators next month and roll out the service by year-end after a September beta.
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