South Korea's Ministry of Science and ICT said on Tuesday it has recognised the Korea Social Security Information Service-led "AI-based integrated social security development platform construction project" as a revenue-based private investment software project.

Under the revenue-based private investment software model, a private operator bears all system build and operating costs without government fiscal support and recoups the investment through operating revenue.

The project aims to quickly reflect changes in welfare policy in the system to reduce the time gap between policy announcements and actual welfare benefits. It plans to have contractors building and improving software for the integrated social security information platform use the "AI-based development platform" to speed up system improvements.

The ministry said it expects the revenue-based approach, which brings in private capital without government fiscal support, to reduce procedures needed to secure a budget and allow rapid application of new technologies such as AI.

The ministry said it is the first case to apply the "fast-track for small private investment software projects," introduced to quickly apply new technologies such as AI to projects under 2 billion won. It said public and private demand was matched through an integrated briefing on private investment software projects hosted by the ministry.

Lee Do-gyu (이도규), director general for ICT Policy at the Ministry of Science and ICT, said the private investment software project system will help bring innovative new private-sector technologies into use in a timely manner and serve as an opportunity for the public software market to make another leap. He said he hopes the project will serve as a catalyst to expand participation by small companies with innovative technologies.