Korean Tech Firms Pivot to AI Partnerships with Global Leaders

Kakao, which recently announced a strategic alliance with OpenAI, plans to integrate ChatGPT technology into various projects, including its Kanana service. (Image courtesy of Yonhap)

SEOUL, Feb. 17 (Korea Bizwire) — Major South Korean information and communications technology (ICT) companies are moving away from independent development efforts, forming strategic partnerships with global tech giants in artificial intelligence to minimize risks and boost their service capabilities. 

KT Corporation, one of South Korea’s largest telecommunications companies, announced plans to collaborate with Microsoft to deliver Korea-specific AI transformation solutions across various sectors, including finance, manufacturing, retail, IT, and public services.

The partnership gained momentum recently when top executives from both companies held an AI transformation strategy seminar with leadership from 12 major Korean financial institutions. This follows a five-year partnership agreement signed last September, which included establishing a joint venture to assist domestic and international companies with AI transformation and develop specialized Korean AI solutions and cloud services. 

The companies plan to develop a Korean AI model based on GPT-4 in the first half of the year, along with industry-specific models for public and financial sectors using the Phi 3.5 small language model. 

This trend of adapting existing Big Tech AI models to accommodate Korean laws, regulations, and cultural nuances, rather than developing independent models, is gaining traction across the industry. Kakao, which recently announced a strategic alliance with OpenAI, plans to integrate ChatGPT technology into various projects, including its Kanana service.

Kakao CEO Chung Shina outlined a vision where “AI agents will interact with users beyond simple Q&A, performing tasks across various services within the KakaoTalk ecosystem through function calls.”

The collaboration trend extends beyond partnerships to potential mergers and acquisitions. According to foreign media reports, Meta Platforms is in discussions to acquire Furiosa AI, a Korean AI chip design startup. 

“The AI industry is experiencing rapid changes in partnership and competition dynamics,” said Bae Kyunghoon, head of LG AI Research. “Collaboration with global Big Tech provides access to their networks and technology, enabling quick entry into global markets while improving domestic technical capabilities.” 

Industry experts note that Korean companies have shifted away from developing their own large language models (LLMs) in favor of adapting established global models to Korean regulations, reducing external risks. 

While these partnerships offer potential benefits such as increased exports and access to globally experienced talent, experts emphasize the need to leverage these collaborations to develop independent technological capabilities. From a technological sovereignty perspective, they argue that Korean companies should maintain leadership positions while collaborating with global Big Tech. 

“If Korean companies cede technological leadership to Big Tech, Korea could fall behind in the AI technology race,” warned Bae. He emphasized the importance of developing foundation models based on Korea’s industrial strengths. 

Baik Sung-wook, a professor at Sejong University’s College of AI Convergence, advocated for a two-track strategy: “While immediate collaboration with Big Tech is necessary, Korean companies need to pursue independent AI model development, similar to DeepSearch’s approach.”

Kevin Lee (kevinlee@koreabizwire.com)