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South Korea weighs public-private SPC for frontier AI model development

South Korea is reviewing the use of a special purpose company jointly funded by the public and private sectors to develop frontier-level AI models, government and industry officials said. Proposals being discussed include the government investing about 5 trillion won for a roughly 30 percent stake, with the private sector providing the remaining 70 percent. The move reflects a policy shift to diversify national R&D support from grants toward equity investment.