South Korea and Malaysia announce distinct AI development strategies

South Korea is implementing a two-track artificial intelligence strategy to balance existing foundation model development with new frontier AI initiatives. The Ministry of Science and ICT is currently conducting a third-stage evaluation for the national AI foundation model project, with two finalists expected to be selected in February.

To address rapid global advancements, the South Korean government plans to allocate 4.7 trillion won ($3.5 billion) toward a separate frontier AI program starting in March 2027. Deputy Prime Minister and Science Minister Bae Kyung-hoon clarified that the original foundation model project is not being scrapped but is being supplemented to better respond to cybersecurity threats and global technological shifts.

In Malaysia, the 2027 Budget introduces measures to increase AI adoption. The government has announced that AI subscriptions, such as ChatGPT or Gemini, will now be eligible for individual lifestyle tax relief. Additionally, the government will provide 100,000 free AI subscriptions aimed at young Malaysians as part of a broader digital literacy and skills initiative.