Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-09-02
South Korea has officially selected SK Telecom, KT, and Kakao to lead the "AI for All" project, providing free, unlimited generative AI services to all 51 million citizens by year-end. Simultaneously, the government narrowed its sovereign AI foundation model race to three finalists—LG AI Research, SK Telecom, and Upstage—eliminating Motif Technologies despite its global benchmark success. Naver, excluded from the national model selection, is pivoting to a $10 billion infrastructure strategy with Nvidia.
Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-09-02
Top developments
SKT, KT, Kakao Selected for Free Public AI Service
On August 28, 2026, the Korean government selected consortiums led by SK Telecom, KT, and Kakao as operators for the "AI for All" initiative. This project will provide free, uncapped access to generative AI assistants and public agents to all South Korean residents, with beta testing scheduled to begin before the official launch later this year. The move aims to bridge the AI adoption gap across the population, leveraging domestic models rather than foreign platforms.
Sovereign AI Model Race Narrowed to Three Finalists
The Ministry of Science and ICT (MSIT) announced on August 18 that LG AI Research, SK Telecom, and Upstage have advanced to the third stage of the "Independent AI Foundation Model" (Dokpamo) project. Motif Technologies was eliminated due to lower scores in usability evaluations, despite strong performance in global benchmarks. The three remaining teams will receive expanded support, including NVIDIA GPU resources worth approximately 120 billion KRW ($88 million USD), to develop world-class sovereign models.
Naver Pivots to $10 Billion AI Infrastructure Bet
Following its exclusion from the national sovereign AI model shortlist in January 2026, Naver is focusing on becoming a compute utility provider. The company is advancing the "Naver AI Factory," a massive infrastructure project backed by a $10 billion investment involving partnerships with Nvidia and Brookfield. This strategy shifts Naver’s focus from competing directly for the "national champion" title to providing the underlying hardware and cloud services for Korea’s AI ecosystem.
Local view
Local media outlets like Chosun Biz have highlighted the competitive dynamics, noting that while Naver sat out the initial bidding for the "Everyone's AI" public service, it is heavily investing in infrastructure. Huffington Post Korea published a critical analysis on August 31, questioning whether the transparency of the Dokpamo evaluation process adequately addresses the core goal of true "sovereign AI," arguing that the focus on benchmarks may obscure deeper strategic questions about data independence and long-term sustainability.
Context & numbers
- User Base: The "AI for All" project targets South Korea's entire population of approximately 51 million citizens.
- GPU Support: The three surviving sovereign AI teams (LG, SKT, Upstage) are eligible for NVIDIA GPU support valued at 120 billion KRW.
- Market Share: As of early 2026, ChatGPT remained the leader in Monthly Active Users (MAU) with over 22 million, while Zeta AI Chat led in total usage time, indicating high engagement among younger demographics.
On the radar
- Third Stage Evaluation: The final two teams for the sovereign AI model project will be determined in the upcoming third-stage evaluation, scheduled to conclude in late 2026.
- Security AI Tender: The MSIT recently closed applications for a security-focused AI development tender, with SKT, Naver, and LG expected to be key players in this separate initiative.
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.
Powered by
