South Korea is emerging as one of the few countries carving out its own niche in the global AI sector, a landscape still dominated by the U.S. and China. The country’s strength in AI goes beyond culture. South Korea’s semiconductor exports hit a record $173.4 billion in 2025, driven by demand for high-bandwidth memory used in AI processors. The government is also backing what media dubbed the “AI Squid Game,” an elimination-style competition to develop a sovereign AI foundation model. Competition is fierce, with tech giants like Kakao and Naver opting out of the contest.
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