S. Korea, Singapore Launch $300M AI Fund to Challenge US-China Dominance

Lee made the commitment during the AI Connect Summit in Singapore, where company and government officials and experts in the AI sector of both countries gathered to seek joint research and investment opportunities, reports Yonhap news agency.

"We are now in the midst of a massive civilisational transformation driven by AI," he said. "Amid these waves of change, it is inevitable that South Korea and Singapore, both of which possess world-class AI capabilities, join hands."

The South Korean president arrived here on Sunday for a state visit that included a bilateral summit with Singaporean Prime Minister Lawrence Wong.

Acknowledging that the global AI industry is currently led by the United States and China, Lee expressed hope that South Korea and Singapore, widely seen as distant followers behind the two giants, can take the lead in niche areas, including AI manufacturing.

"If the two countries set clear goals and collaborate to fill in each other's gaps, I am confident that they can lead in specific areas," Lee said. "They can build competitiveness in human-centric research and development and new applications."

AI is one of the key areas of cooperation between the Asian tech powerhouses. South Korea has strengths in semiconductors, data center infrastructure and manufacturing AI, while Singapore has advanced AI governance and regulation and serves as a hub for AI data in Southeast Asia.

Lee said bilateral AI cooperation should evolve beyond simple technology exchanges into a "strategic industrial partnership" to explore new AI-driven markets and position the two countries as "Asia's leading innovation hub."

"The Korean government will support substantive cooperation between the two countries through the AI Cooperation Framework," he said, adding Seoul will create a $300 million "Korea Venture Capital Corporation (K-VCC) global fund by 2030."

As part of the plan, the Ministry of SMEs and Startups announced plans to establish the government's first offshore global fund in Singapore in the second half of this year, with a goal of drawing $300 million by 2030.

The ministry expects the envisioned fund to focus investments on promising AI startups in both countries while serving as a bridge connecting global investors with innovative startups.

He pledged to support cross-border joint research to develop AI technologies that will help address pressing challenges and launch joint projects and exchange programs between researchers next year.

In this vein, the Ministry of Science and ICT said it will launch an international joint research program worth 50 billion won (US$34.2 million) in the AI and digital fields over five years starting in 2027, giving priority to projects involving Singapore.

- IANS