South Korea's Ministry of Science and ICT announced AI ecosystem strengthening policies on July 23, including next-generation small modular reactors (SMR, 300MW class) and physical AI port development. Deputy Prime Minister and Minister Bae Kyung-hoon chaired a science and technology ministerial meeting at the Government Complex Seoul, discussing SMR development direction, defense semiconductor localization, and industrial ecosystem strategies. The initiatives respond to what Bae characterized as an AI revolution reshaping the global economic and industrial landscape, with the government's second year focused on proving policy directions through tangible results.
Ministry Outlines SMR Development and Nuclear Fuel Self-Sufficiency Plans
The ministry will develop business models by reactor type to drive private sector demand and commercialization support for SMR. The plan includes fostering specialized companies such as public-private joint special purpose corporations (SPC). The government will secure technology and infrastructure for smooth supply of high-assay low-enriched uranium (HALEU) and domestic production of finished nuclear fuel. A nuclear fuel self-sufficiency system (pyroprocessing) will be established.
Government Establishes Defense Semiconductor Production Infrastructure
The defense semiconductor strategy utilizes existing public and private fabrication facilities to secure production infrastructure. The ministry will establish a public-private joint mutual benefit fab to support manufacturing, mass production research and development for private defense semiconductor foundries.
Jinhae New Port Designated as Physical AI Port Pilot Model
Jinhae New Port will serve as the leading model for physical AI port development. The government will pursue phased expansion to other ports and support entry into overseas markets. Additional policy discussions covered the agentic AI initiative, public AI transformation (AX) privacy protection guidelines.
Ministry Approves 520 Additional GPU Units for Government AI Projects
The GPU support plan addresses newly raised demand following the March 6th ministerial meeting decision to provide 2,832 GPU units for 52 tasks across 25 ministries under the national AI project. The new approval covers 520 GPU units total.
Deputy Prime Minister Bae stated that while the past year established direction amid the AI revolution and intensified technology competition, the government's second year represents golden time for a great leap forward to prove direction through results. Bae emphasized the government will secure overwhelming competitiveness in semiconductors, AI data centers, and physical AI through three mega projects, while accelerating realization of an AI-based society for all citizens.
FAQ
What policies did South Korea's Ministry of Science and ICT announce on July 23?
The ministry announced policies including next-generation small modular reactor (SMR, 300MW class) development, defense semiconductor localization, physical AI port strategy, agentic AI initiative, and GPU support expansion for government AI projects.
Why is the government pursuing SMR development and nuclear fuel self-sufficiency?
The SMR development plan aims to drive private sector demand through business model development by reactor type and foster specialized companies including public-private joint special purpose corporations. The nuclear fuel self-sufficiency plan will secure technology and infrastructure for HALEU supply and domestic finished nuclear fuel production.
How many GPU units did the ministry approve for government AI projects?
The ministry approved 520 additional GPU units to address newly raised demand, following the March approval of 2,832 GPU units for 52 tasks across 25 ministries under the national AI project.
