Signal South Korea plans $3.5B frontier AI model program starting March 2027

Summary

South Korea's Ministry of Science and ICT announced a proposed 4.7 trillion won (about $3.5 billion) program to develop a frontier AI model, with work slated to begin in March 2027. Of that amount, 3.85 trillion won is earmarked for expanding GPU capacity, including roughly 10,000 Nvidia Vera Rubin-class units, though how the GPUs will be allocated has not been set. The ministry plans to choose a lead developer through a competitive tender after parliament approves the 2027 budget in December, with a winner possibly named as early as February. The government will continue its existing sovereign AI competition alongside this separate frontier-model track. The budget remains a proposal pending legislative approval, so its final size and timeline may change.