South Korea’s National Growth Fund will lead a 560 billion won investment in local AI startup Upstage, as the government seeks to localise the AI supply chain from chips to models and draw follow-on private funding. The Financial Services Commission approved the investment for Upstage’s next-generation model project. Funding includes 100 billion won from an advanced strategic industries fund, 30 billion won from Korea Development Bank and 430 billion won in private capital.

South Korea will invest money from the Public Growth Fund in a project to build a national AI computing centre, supporting an AI infrastructure with 15,000 AI chips. A direct investment of 100 billion won in Upstage was also approved to secure sovereign AI. The Financial Services Commission said the fund approved four megaprojects and one regional SME support plan, bringing cumulative approvals to about 84 trillion won.