Koo Yun-cheol says AI push can address growth and imbalances as Seoul seeks to host global agencies’ AI units
Finance Minister Koo Yun-cheol has outlined an ambitious plan to establish South Korea as a global leader in artificial intelligence (AI), suggesting Seoul could ultimately host the AI divisions of various United Nations agencies.
“South Korea has the potential to become the UN’s AI headquarters in the long run,” Koo stated during a briefing with reporters in Washington on Thursday. He emphasized, “Korea must cement its position as the premier AI hub.”
This strategic vision builds upon the World Bank’s recent designation of Korea as a pivotal hub for AI and digital transformation. This was notably underscored by the launch of the Korea-World Bank Global Digital Knowledge Center in Songdo, Incheon, last December.
Minister Koo further revealed that several other international institutions are actively planning to establish AI centers in Korea. This list includes six UN-affiliated agencies, alongside the Asian Development Bank and the Inter-American Development Bank.
“We are also preparing to approach the International Monetary Fund and the European Bank for Reconstruction and Development,” Koo added, anticipating that these concerted efforts could eventually elevate Korea to the status of a formal UN AI hub.
While attending the G20 finance ministers and central bank governors meeting in Washington, Koo highlighted AI’s potential to address the summit’s core themes: economic growth and global imbalances. He explained that widespread adoption of AI technology could significantly boost the efficiency of economic activities and help mitigate current account imbalances.
He also strongly urged the nation to intensify its focus on the AI sector. “Korean industry must prioritize AI-related chips, encompassing memory semiconductors, high-bandwidth memory (HBM) crucial for computing and inference, power semiconductors, and sensor chips,” Koo advised. He also projected that Korea’s transition towards AI and energy transformation would accelerate following the cessation of hostilities in the Middle East.
Koo specifically identified small language models (SLMs) as a key area where Korea could cultivate a distinct competitive advantage. He noted that developing large language models demands immense land and electricity resources, making it challenging for Korea to rival the United States, which already holds a significant technological lead. Instead, applying SLMs to industries where Korea already excels, such as shipbuilding, automotive manufacturing, and home appliances, would represent a more effective strategic path, he elaborated.
Regarding discussions concerning the $350 billion US investment fund, Koo stated, “Work is progressing to clarify the specific investment targets based on the provided fact sheet.” He added that, to his understanding, “there are no significant discrepancies between Seoul and Washington.”
In a separate briefing on Wednesday, Koo announced that the headquarters of the Korea-US Strategic Investment Corporation, tasked with overseeing the execution of the $350 billion investment plan, will be established in Sejong City, South Korea’s de facto administrative capital.
When questioned on Thursday about whether alleged forced labor at Korean salt farms might become an issue in the US Trade Representative’s Section 301 investigation—which involves South Korea, China, and Japan—Koo downplayed the concern. He indicated that the Labor Ministry had likely already addressed the matter and submitted all required documentation.
Koo is scheduled to meet with US Treasury Secretary Scott Bessent later on Friday, marking their first encounter since January. While the official agenda was not disclosed, Koo mentioned they would “review a range of issues,” with discussions anticipated to cover topics including the exchange rate and the status of Korea’s investment commitments within the US.
jwc
