The South Korean government and the nation’s three major mobile carriers are partnering to create a 300 billion won ($219 million) artificial intelligence (AI) innovation fund, aiming to secure core AI technologies early and build a private sector-led innovation ecosystem.

The Ministry of Science and ICT announced Tuesday that it held a “Government-Telecom AI Investment Cooperation Declaration” ceremony at the Westin Josun Hotel in central Seoul, where it unveiled plans to significantly expand AI investments through the Korea IT Fund (KIF) that will jointly be funded by SK telecom, KT, and LG Uplus.

Launched in 2002 with 300 billion won in contributions from the three carriers, KIF has established 91 sub-funds and invested a total of 4.7 trillion won in 1,669 promising ICT startups as of the end of 2024, serving as a catalyst for Korea’s private ICT investment ecosystem. The fund’s life span, originally set to expire in 2030, was extended by 10 years to the end of 2040.

The three carriers will contribute 150 billion won to the KIF’s main fund in 2025, which will be matched by at least 150 billion won in capital from fund managers to form a pool exceeding 300 billion won. Of this amount, more than 240 billion won will be dedicated to companies developing core and foundational AI technologies as well as those driving AI transformation (AX) and applications. To boost competitiveness in AI semiconductors, the partners will establish a dedicated 40 billion won fund for the sector along with a 20 billion won fund to support ICT commercialization and the spread of results.

The ceremony drew more than 200 attendees, including Science and ICT Minister Bae Kyung-hoon, SK telecom CEO Ryu Young-sang, KT CEO Kim Young-shub and LG Uplus Vice President Lee Chul-hoon. The Korea Telecommunications Operators Association (KTOA) shared KIF’s investment performance to date and outlined future plans focusing on AI.

“AI is becoming the source of all innovation,” Bae said, adding that increased investment will “provide the spark for AI companies to grow” and expressing hope that the new KIF sub-fund will invigorate AI investment.

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