The Ministry of Science and ICT is accelerating the development of Frontier Artificial Intelligence (AI) and the establishment of large-scale AI data centers (AIDC). However, lawmakers are calling for increased transparency in project management, budget oversight, and cybersecurity measures.
In particular, the ministry announced plans to develop a comprehensive inter-agency strategy in response to two recently disclosed security vulnerabilities in the PHP programming language.
On October 23, a comprehensive audit of the Ministry of Science and ICT was conducted by the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee. Key issues discussed included the planning and investment methods for the Frontier AI project, as well as government responses to the PHP security vulnerabilities.
During the audit, Representative Park Jeong-ha of the ruling People Power Party emphasized the need for transparency in the planning and budgeting of the Frontier AI model development, given the substantial government and private funding involved. He also raised concerns about the potential for concentrated support for specific companies and questioned the methods for attracting private investment.
Deputy Prime Minister and Minister of Science and ICT Lee Kyung-hoon explained that the ministry had considered assigning the development of the Frontier model to the final selected companies of the Independent AI Foundation (IAF). However, due to concerns about concentrated support, the structure was changed. He noted that the previous support of around 1,000 graphics processing units (GPUs) has now increased to over 10,000, which could lead to controversy over favoritism.
Regarding the change to an investment model, Deputy Prime Minister Lee stated that the establishment of a special purpose corporation (SPC) has not yet been confirmed and is still under discussion.
He also indicated that the IAF and the Frontier AI project would be pursued in conjunction, as the development of the Frontier AI model requires additional resources, personnel, and data beyond what the IAF project provides. Lee emphasized the intention to continue the public and industrial AI transformation initiated by the IAF while striving for higher-level models.
Discussions also addressed the need for power and tax incentives to expand AIDC investments. Representative Kim Nam-kook of the Democratic Party pointed out that to realize the plan for an 8.4-gigawatt (GW) AIDC by 2029, uncertainties regarding power supply and permits must be resolved.
In response, Deputy Prime Minister Lee noted that while the ministry has proposed a maximum exemption limit of 100 megawatts (MW), companies are requesting a higher level of support and that he would consult with relevant ministries.
The lack of tax incentives for rental AIDC projects was also raised. Concerns were expressed that excluding colocated investments, which provide power and cooling by specialized infrastructure companies, from tax deductions could hinder attracting foreign capital. Deputy Prime Minister Lee acknowledged that rental AIDCs do not have tax benefits and promised to consult with the finance authorities promptly.
As AI investments increase, there were calls for accurate budget classifications. Representative Lee Yeon-hee of the Democratic Party highlighted that instances of 'AI washing'—exaggerating the use of AI in national research and development (R&D) projects—are occurring.
Deputy Prime Minister Lee acknowledged that some projects may appear not to involve AI and stated that the ministry would verify this with the Intellectual Property Office.
Cybersecurity responses were also scrutinized. Lawmakers from both parties stressed the need to quickly identify vulnerable systems and the status of patches, beyond just issuing security notices and alerts regarding the PHP vulnerabilities.
Following the confirmation of the vulnerabilities, the Ministry of Science and ICT issued a security notice and raised the cyber crisis alert level from 'attention' to 'caution' the next day. However, Lee Sang-jung, head of the Korea Internet & Security Agency (KISA), stated that the number of public institutions using vulnerable PHP versions and the status of patches have not yet been determined.
Deputy Prime Minister Lee also stated that a comprehensive inter-agency strategy regarding cybersecurity would be developed.
* This article has been translated by AI.
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