South Korea launches AI compute center project and $14 billion AI fund

South Korea broke ground on its National AI Computing Center on August 3 at the Solar Sea Data Center Park in Haean County, Jeollanam‑do. The project, described as an "AI highway," will cost about 2.5 trillion won (roughly $1.9 billion) and aims to house a cluster of 15,000 advanced AI chips by 2028. Samsung SDS and partners—including Naver Cloud, Kakao, Samsung Electronics, KT and others—will operate the centre, with early computing services expected from 2027.

In parallel, the government announced a new strategic investment account within the state‑run Korea Investment Corporation (KIC) with an initial capital of at least 20 trillion won (about $14 billion). The fund will target long‑term investments in AI, data‑center infrastructure, semiconductors, robotics, biotechnology, aerospace and energy projects, and is slated to begin operations next year after legislative approval. The initiative is intended to boost national competitiveness and attract additional sovereign‑wealth and institutional capital, not to stabilize markets.