Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol on July 20 speaks at a ministerial meeting on global economic affairs at Government Complex-Sejong in Sejong. (Yonhap News)

By Lee Jihae

The new strategy K-AI Package seeks to support the growth of developing economies through concessional official development assistance (ODA) and expand the overseas advances of domestic artificial intelligence (AI) companies.

The plan was announced on July 20 at a ministerial meeting on global economic affairs chaired by Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol.

The strategy is a comprehensive ODA business model that blends AI solutions, AI data centers and renewable power facilities with infrastructure projects funded by the Economic Development Cooperation Fund (EDCF).

The objective is to support the digital transformation and industrial development of emerging economies while expanding business opportunities abroad for Korean AI companies.

Project implementation will be conducted by bundling AI solutions specialized for infrastructure with AI data centers and power supply facilities to ensure their stable operations.

To this end, a project portfolio has been devised based on technology and components focused on seven sectors: water resources, healthcare, energy, transportation, agriculture, culture and education.

Leading examples include AI solutions for water treatment and water level management at dams, medical diagnosis assistance systems, renewable energy generation and operation management technologies, integrated smart farm control, and AI education and training solutions.

The plan is to link the initiative with development cooperation tools like the EDCF, Knowledge Sharing Program (KSP), trust funds and joint financing with multilateral development banks, and development finance.

First, the business needs of partner countries will be continuously identified. AI will be made a priority in the KSP's 2027 emergency advisory sector and in-depth country assessments from the second half of the year will look for strategic planning projects.

Through a partnership of concessional and grant-based ODA, Seoul will participate in setting AI-related laws, systems and standards in beneficiary countries and support human resource training and technical education.

A proposed global AI hub will serve as a base in developing economies to spread AI and reinforce relevant capabilities.

In the second half of the year, customized K-AI projects will be proposed based on the specific business needs of partner countries before the specific commercialization process begins.

jihlee08@korea.kr