Major Korean technology companies that failed to win selection for the government-led "Independent AI Foundation Model" project are seeking a turnaround through swift strategic pivots. Rather than pursuing costly competition in general-purpose models, they are shifting to a "pragmatic" approach that leverages each company's strengths to capture market leadership.
According to industry sources on the 16th, major companies that were eliminated from the project have declined to participate in the government-organized second-chance round, instead accelerating efforts to build their own ecosystems.
Naver is focusing on "service internalization," closely integrating AI with its core businesses including search, advertising, and commerce. The company plans to double the coverage of its summary search service "AI Briefing" this year. Starting this month with shopping, Naver will sequentially introduce "AI agents" to lifestyle services including restaurants, travel, and financial payments. In the first half of the year, the company will launch an "AI Tab" for conversational AI search on its portal homepage, aiming to maximize ad click-through rates and purchase conversion rates by providing one-stop support for the entire user journey from product discovery to purchase and reservation.
Kakao is accelerating efforts to strengthen its dominance in the B2C market through "alliances" with global big tech companies. Following its October partnership with OpenAI, the company officially announced a partnership with Google on the 12th. Kakao is working with Google to optimize "Kanana in KakaoTalk"—previously limited to some iPhone devices—for Android to expand its user base. The company is also considering integrating Kakao services into Google's next-generation "AI glasses." Additionally, Kakao has launched promotions offering the premium "ChatGPT Pro" membership at significant discounts to attract more users.
NC AI, a powerhouse in the gaming industry, has established an industry-academia-research alliance with the goal of becoming the "global leader in Physical AI." The "K-Physical AI Alliance," led by NC AI, was launched to develop the "brain" for robots. This consortium—spanning robotics startups (Realworld, Seemes) to major corporations (Samsung SDS, Lotte Innovate, Posco DX, and Hanwha Ocean)—will participate in the Institute of Information & Communications Technology Planning & Evaluation's "Physical AI World Foundation Model Technology Development" project. The technology developed through this initiative is expected to become a core solution for addressing challenges in manufacturing and logistics.
KT is focusing on its "AX (AI Transformation) business," combining cloud computing with generative AI. Based on partnerships with global companies including Microsoft and Palantir, KT plans to target the security-focused cloud market and actively pursue data and AI business opportunities in the financial sector.
An industry official said, "Companies that were eliminated from the project are actually expanding their AI investments while finding their own identity," adding, "With collaborations with global big tech and the launch of practical services converging, competition in the domestic AI market is expected to intensify further this year."