Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-10-24
South Korea’s Deputy Prime Minister and Minister of Science and ICT, Bae Kyung-hoon, clarified during the 2026 National Assembly Audit that the new "Frontier AI" project is distinct from the existing "Sovereign AI Foundation Model" (DokpaMo) initiative, aiming for models with 2 to 10 trillion parameters. Simultaneously, NVIDIA has signed a co-investment deal with Samsung Electro-Mechanics to secure exclusive AI chip packaging lines in Korea, while ChatGPT maintains its lead in Korean monthly active users with approximately 24.7 million.
Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-10-24
Top developments
Minister Clarifies Distinction Between Frontier AI and Sovereign Model Projects
During the National Assembly Audit on October 23, 2026, Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon addressed controversies surrounding the government's AI investments, stating that the "Frontier AI" project and the "Sovereign AI Foundation Model" (DokpaMo) are not the same initiative. Bae emphasized that the Frontier AI project targets the development of models ranging from 2 trillion to 10 trillion parameters and is not a presidential directive but a necessary additional step for advanced model development. This clarification aims to resolve the "AI Daesang-dong" controversy regarding potential favoritism in state-funded projects.
NVIDIA Secures Exclusive AI Chip Packaging Lines in Korea
On October 22, 2026, NVIDIA signed a co-investment agreement with Samsung Electro-Mechanics to establish FC-BGA substrate lines exclusively for NVIDIA at factories in Sejong and Busan. This move is designed to secure chip packaging supply for next-generation AI accelerators, as industry lead times have stretched from 12 weeks to 48 weeks. The partnership highlights the deepening integration of Korean component makers like Samsung Electro-Mechanics and LG Innotek into NVIDIA’s AI chip and robotics supply chain.
ChatGPT Leads Korean AI App Market with 24.7 Million Users
According to a September 2026 survey released by app analytics firm Wiseapp·Retail on October 13, 2026, ChatGPT maintained its top position in the Korean generative AI market with 24.7 million monthly active users. While user numbers grew by 19%, total usage time surged by 64%, indicating deeper engagement with AI tools among Korean consumers. This data underscores the dominance of global models despite the government's push for sovereign AI alternatives.
Local view
Local media outlets such as Newspim and Dailian focused heavily on the political and budgetary implications of the government's AI strategy during the National Assembly Audit. Minister Bae Kyung-hoon faced questions regarding the transparency and overlap of state-funded AI projects. He defended the necessity of the Frontier AI project, arguing that the previous Sovereign AI Foundation Model project did not allocate a separate GPU budget for this year, necessitating a distinct and larger-scale initiative to compete globally.
Context & numbers
- Frontier AI Scale: The government aims to develop models with 2 to 10 trillion parameters under the new Frontier AI initiative.
- ChatGPT Usage: 24.7 million monthly active users in Korea as of September 2026, with a 64% increase in usage time.
- Chip Lead Times: Lead times for AI chip packaging have increased to 48 weeks, driving NVIDIA's direct investment in Korean manufacturing lines.
On the radar
- National Assembly Audit: Ongoing scrutiny of the "Frontier AI" budget and its relationship with the "Sovereign AI Foundation Model" project continues to shape public perception and policy adjustments.
- NVIDIA Supply Chain: Further announcements regarding component sourcing from Korean firms like LG Innotek for AI robotics may follow the recent co-investment deals.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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