The Lee Jae-myung administration's goal of making Korea one of the world's top three AI powers, a key slogan unveiled at its launch last year, is moving closer to reality. The government has accelerated efforts to secure its own AI foundation models, and individual companies have produced tangible results as the so-called "Dokpamo" project lifts the competitiveness of private-sector models. A broad strategy to integrate AI into actual industries is also being pushed in parallel.
No. 3 in Notable AI Models: LG AI Research Leads the Way
This shift was symbolically captured in the "2026 AI Index" published by the Stanford Institute for Human-Centered AI (HAI). According to the report, Korea recorded five "notable AI models" released in 2025, ranking third behind the United States with 50 and China with 30. The ranking is up one notch from the previous year. Stanford HAI also noted that while the U.S. leads in developing cutting-edge models and China is strong in research output such as papers and patents, Korea holds a leading position in AI patents relative to its population.
Korea has long been recognized as a country that uses AI well or makes memory chips for AI, but it has rarely been cited as a nation consistently producing globally noteworthy models. This time, however, it sits directly behind the U.S. and China in the ranking of "model-building countries." The two-power system led by the U.S. and China remains firmly in place, but in the competition for what comes next, Korea has taken the most advanced position. That means Korea has moved out of the periphery of the AI race and at least into the leading chasing pack.
The results were driven largely by LG AI Research's EXAONE family of models. According to the first evaluation of independent AI foundation models released by the government in January of this year, LG AI Research's models were listed as "notable AI models" in a global database and also showed strengths in real-world usability and inference efficiency. EXAONE is characterized by going beyond a general-purpose chatbot, simultaneously targeting Korean-language competitiveness, reasoning capabilities, and applicability in industrial settings. That is why it is regarded as closer to a "working AI" that can be combined with fields where Korea has strengths, such as bio, chemicals, manufacturing, and R&D.
Government Expands AI Across Industries, Including Care and Business
LG is not alone, however. Other elite team models from Naver Cloud, Upstage, and KT have also made their presence felt on Epoch AI's AI performance leaderboard. Korea's AI ecosystem is moving not as a solo run by one company but as a structure in which multiple firms are advancing their own models. In other words, it is not a single star player but a deepening bench.
The government is also formally launching its "AI for All" policy to introduce AI across daily life. The Ministry of Science and ICT and the Ministry of Health and Welfare recently announced a "Full-Cycle Support Strategy for AI Care Technology," saying they will deploy AI and IoT in long-term care facilities and in-home care settings to improve caregiving efficiency. In particular, care facilities will adopt a smart facility model that combines AI- and IoT-based monitoring with data analytics, and AI-assisted caregiving technologies using physical AI will be expanded in stages.
AI agents will be introduced into the workplaces of small and medium-sized enterprises and small business owners. Under the approach, AI learns individual data such as users' notices of interest and consultation records, and uses it to provide customized information such as commercial district analysis and consulting to improve efficiency. Projects to open public data to venture firms and startups for developing AI services will also be expanded.
