South Korea bets $3.49 billion on building a homegrown frontier AI model to rival China's best

South Korea wants to develop a homegrown frontier model through government-backed equity investments of 4.7 trillion won ($3.49 billion). The funding is part of the proposed 2027 budget, though parliament still needs to approve it. A second funding track would support the adoption of Korean-built models across the country's economy. The two finalists in the current competition between LG AI Research, SK Telecom, and Upstage won't automatically receive additional funding.

Instead, the government is launching…