In 2026, South Korea's economy stands at the threshold of a new leap forward, ushering in the era of KOSPI 6000. At its core lies firmly established semiconductor technology competitiveness and the explosive potential of the artificial intelligence ecosystem.
In January, Artificial Analysis, an AI model performance analytics firm, ranked Korea among the "Global AI Big Three" alongside the United States and China. At CES 2026 held earlier this year, Korean companies demonstrated their technological prowess by winning approximately 220 innovation awards—nearly half of all awards—including 19 Best of Innovation honors.
Notably, startups and mid-sized enterprises captured about 60% of the Best of Innovation awards. This signals that the foundation for growth is expanding from large conglomerates to a broader, more dynamic innovation ecosystem. The widening technology base can also be read as a sign of qualitative transformation.
However, technology alone is not enough. For innovative companies to cross the "death valley" and achieve genuine global competitiveness, sophisticated and consistent strategic support is essential. An "R&D scale-up" strategy that prevents companies from resting on a single success and accelerates greater innovation and market entry is more critical than ever.
After technology development, companies need opportunities for pilot projects to validate their technologies once more. To advance toward commercialization, government preemptive public procurement must be closely linked with active private sector purchasing to create initial markets as a catalyst.
Shanghai has an AI innovation hub called "Modu Space," while Hangzhou has established a cluster known as "AI Town." Through these initiatives, China supports various startups including humanoid robotics company Unitree and brain-computer interface firm BrainCo. Beyond merely providing space, these hubs offer comprehensive packages including AI models, computing infrastructure, investors, connections to big tech, and promotion, exhibition, and global networking opportunities. This structure accelerates growth by bundling technology, capital, and market access simultaneously. Korea must also further advance its scale-up mechanisms that integrate space, infrastructure, capital, and networks.
To leap forward as a global champion, a powerful "packaging" strategy that goes beyond loose alliances among individual companies is essential. In fields like Physical AI, where AI models must work closely with semiconductors, sensors, and robotics, strong cohesion and joint design are required from the R&D stage.
The "Korean AI Consortium" case, which began full-scale cooperation last month through Saudi Aramco Digital's AI transformation project, provides important implications for global expansion strategy. Thanks to this initiative, seven core companies spanning AI semiconductors, AI models, and cloud infrastructure—including Rebellions, FuriosaAI, Upstage, and NCSOFT AI—are consolidating their respective strengths to explore new possibilities in the Middle Eastern market.
When innovative companies are equipped with a full-cycle support system—from securing core technologies through R&D, to scale-up strategies for commercialization, to global market penetration—and when the public and private sectors move as one team under clear objectives, 2026 will be recorded as the true inaugural year of Korea's emergence as a global AI champion.
*Hong Jin-bae is President of the Institute for Information & Communications Technology Planning & Evaluation (IITP)*