South Korea Boosts Investment in Cloud Computing Industry

SEOUL — The Ministry of Science and ICT announced on Monday a significant investment of 121.9 billion won (approximately US$91.5 million) to enhance South Korea's cloud computing sector this year.

According to Yonhap News Agency, this funding represents an increase of 17.2 billion won over the previous year's allocation, highlighting the government's commitment to advancing technological infrastructure in line with the global shift towards digitalization.

The ministry emphasized the pivotal role of cloud technology in the development of artificial intelligence (AI), noting its capacity for high-performance computing and extensive data storage capabilities. The investment plan includes an allocation of 24 billion won for the development and commercialization of innovative cloud services. Additionally, 7 billion won will be directed towards cloud-based software as a service (SaaS) projects, with another 8 billion won earmarked for the transformation of conventional software to SaaS platforms. Furthermore, the ministry has set aside approximately 20 billion won to establish an innovation fund specifically for SaaS initiatives.

A ministry official stated, "We will foster cloud technology across industries and society and support the innovative growth of local cloud companies, including SaaS, in the era of AI sparked by Chat GPT." This statement underscores the government's strategy to position South Korea at the forefront of the cloud computing and AI industries, ensuring that local enterprises remain competitive on the global stage.

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