An interesting initiative from South Korea. The government is taking serious steps to develop the local AI industry and has announced an expansion of government procurement of domestic solutions in this sector. Finance Minister Ku Yoon-chol shared plans to set up an expert committee in September, which will accelerate the launch of innovative products on the market.

The most interesting part is in the details. The state has introduced a requirement that at least half of the components in these products must be produced domestically. This is not just support—it’s serious work on the local supply chain. And the budget for this effort is growing noticeably: if in 2025 52.9 billion Korean won was allocated for pilot government procurement, then in the current 2026 year they plan to allocate 83.9 billion won.

In essence, the government is positioning itself as the first customer for these innovative companies. It’s a classic approach: create demand, give local firms experience working with a major customer, help them grow and break into the global market. Such government procurement programs usually become a catalyst for an entire segment of the industry. South Korea is clearly betting on becoming a serious player in the AI space, leveraging its technological capabilities.