Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-09-13
The South Korean Ministry of Science and ICT has announced a massive 4.7 trillion won ($3.49 billion) investment to develop a sovereign frontier AI model, intensifying the race among domestic tech giants. Meanwhile, Naver Cloud was selected as the lead contractor for a new cybersecurity-specialized AI foundation model, defeating SK Telecom in a competitive bid. The government is also preparing to deploy over 20,000 high-performance GPUs to support these national initiatives.
Korean AI Services: HyperCLOVA X, Kakao, SKT, Exaone — 2026-09-13
Top developments
Ministry Announces $3.49 Billion Investment for Frontier AI Model
On September 8, the Ministry of Science and ICT (MSIT) announced plans to invest 4.7 trillion won ($3.49 billion) into a project to develop a homegrown artificial intelligence foundation model capable of competing with global leaders. This funding is intended to support the "Independent AI Foundation Model" (DokpaMo) project, which aims to secure technological sovereignty and reduce reliance on foreign AI services. The move signals a long-term commitment to building domestic compute infrastructure and talent, with the first phase of GPU support already underway for selected teams.
Naver Cloud Selected for Cybersecurity-Specialized AI Project
Naver Cloud’s consortium was selected as the final operator for the government’s "Cybersecurity-Specialized AI Foundation Model Development" project, beating out SK Telecom in the final round. The project will run for 10 months starting in September 2026, with conditional support of 256 NVIDIA B200 GPUs. Naver plans to leverage its proprietary HyperCLOVA X and LG’s EXAONE models to create a security-focused AI, emphasizing that national cyber security cannot rely on overseas models.
Naver Deploys 4,000 GPUs for National Security AI Shield
In an interview on September 10, Naver revealed it is deploying 4,000 GPUs to develop a "national security AI shield." The company stated that areas directly linked to national cyber security cannot depend on foreign models. This initiative involves parallel development of security-specialized AI based on HyperCLOVA X and EXAONE, aiming to create a robust defense against cyber threats using domestic technology.
Upstage, SKT, and LG Advance in "National Representative AI" Race
Following the second-stage evaluation of the DokpaMo project, Upstage, SK Telecom, and LG AI Research were confirmed to have advanced to the next round, while Motif Technologies was eliminated due to poor usability scores. The three surviving teams will receive expanded support from NVIDIA GPUs to accelerate their model development. This narrows the field to a three-way battle for the title of Korea’s leading sovereign AI provider.
Local view
Local media outlets are highlighting the strategic divergence between platform companies. Digital Focus reports that Naver Cloud’s selection for the security AI project underscores the government's priority on "sovereign security," noting that Naver is betting on a 700-billion-parameter model built on HyperCLOVA X and EXAONE to protect national data. Meanwhile, Chosun Ilbo points out that while the government’s AI policies have expanded in scale, critics argue they have yet to achieve significant market penetration or solve infrastructure bottlenecks like power supply for GPU clusters.
Context & numbers
- Total Investment: 4.7 trillion won ($3.49 billion) for the sovereign frontier AI model project.
- GPU Deployment: Plans to deploy over 20,000 high-performance GPUs across national computing centers by the end of 2027.
- Security Project Support: 256 NVIDIA B200 GPUs conditionally supported for the cybersecurity AI project led by Naver.
- Naver’s Compute: Naver is utilizing 4,000 GPUs specifically for its national security AI initiative.
On the radar
- Third-Stage Evaluation: The final selection between Upstage, SKT, and LG AI Research for the DokpaMo project is expected to narrow down to two teams in the upcoming third-phase evaluation.
- International AI Campus: The government plans to open a campus in the first half of next year to host AI functions from nine international organizations, positioning Korea as a hub for global AI norms.
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