South Korea is partially merging budgets for the Sovereign AI Foundation Model Project and frontier-level AI, consolidating data support into a single large-scale Frontier AI data program next year.

The policy preserves Sovereign AI and Frontier AI as two pillars while linking key resources like GPUs and data across both programs to bolster frontier-level AI development.

The move aims to clarify resource allocation and ensure coordinated data and compute resources under one framework, while keeping the separate program objectives intact.

Officials describe the frontier AI initiative as a "new system involving large-scale resources" designed to connect technologies and talent from Sovereign AI to the new system.

The Frontier AI data support program is being created by integrating and expanding prior efforts to secure next-generation AI technologies and sovereign AI foundation models.

Rep. Kim Sun-min plans to scrutinize the restructuring and investment terms during upcoming parliamentary audits and budget deliberations, noting the integration despite official claims that the programs remain separate.

The Frontier AI data funding of 750 billion won will be financed via an equity injection into Korea Development Bank, which will then invest in South Korean AI companies, marking a shift from grants to a bank-backed investment model.

Next year’s data budget totals 800 billion won, with 750 billion for Frontier AI data support and 50 billion to build an AI training base for cybersecurity.

The 2027 budget for securing top-tier AI models and technologies totals 5.5937 trillion won, including about 3.85 trillion won for procuring around 10,000 GPUs and 800 billion won for Frontier AI data competitiveness—more than double the previous year.

Total data support funding rises from 30 billion won this year to 800 billion won next year, as the Sovereign AI data program is merged into the broader Frontier AI data initiative.