Korea’s New ‘AI Highway’: President Lee Jae-myung’s Grand Economic Vision

What Is the ‘AI Highway’ and Why Now?

Did you know that South Korea is embarking on a digital revolution reminiscent of its past industrial leaps? President Lee Jae-myung’s ‘AI Highway’ is not about building more roads for cars, but creating a nationwide network of high-capacity AI data centers. This initiative, announced at the Ulsan AI Data Center launch on June 20, 2025, aims to make Korea one of the top three AI powers globally. Lee’s vision is to provide the foundational infrastructure—expensive GPUs and data resources—so that private companies can innovate on top of it. This approach mirrors the logic behind the Gyeongbu Expressway in the 1970s and the high-speed internet boom of the late 1990s, both of which were pivotal in Korea’s rise as an economic powerhouse.

Historical Echoes: From Highways to High-Speed Internet

Korea’s economic miracles have always started with bold infrastructure projects. The Gyeongbu Expressway, built under President Park Chung-hee, was criticized at first but quickly became the backbone of industrialization, slashing travel times and connecting major cities into a single economic network. Later, President Kim Dae-jung’s investment in high-speed internet during the Asian financial crisis laid the groundwork for Korea’s digital economy, nurturing giants like Naver and Kakao. These projects were controversial at their inception but proved transformative, showing that government-led infrastructure can spark private sector innovation and national growth.

The Mechanics of the AI Highway: Infrastructure for the Digital Age

So, what exactly does the AI Highway entail? Lee’s government plans to build massive, distributed AI data centers across the country, equipped with at least 50,000 high-end GPUs. These centers will be linked by ultra-fast data networks, forming a ‘belt’ of digital infrastructure not just in Seoul but in regional hubs as well. The aim is to democratize access to AI computing power, so startups and established firms alike can develop cutting-edge AI services and products without prohibitive hardware costs. The government will also offer generous tax incentives and regulatory reforms to encourage private investment and foster a vibrant AI ecosystem.

Learning from Past Failures: The Importance of Timing and Vision

Not all grand infrastructure plans have succeeded. The Lee Myung-bak administration’s proposed Grand Canal project, for example, failed to gain public support and was ultimately scrapped due to environmental concerns and doubts about its economic value. Critics argue that the government missed the real revolution—mobile internet and smartphones—by focusing on outdated physical infrastructure. The lesson? Infrastructure must align with technological trends and societal needs. Lee Jae-myung’s AI Highway seeks to avoid these pitfalls by targeting the heart of the digital transformation.

Community Reactions: Hopes, Skepticism, and Fandom Dynamics

How are Koreans reacting? Online communities like DC Inside, Theqoo, and FM Korea are buzzing with debate. Supporters praise the vision, comparing it to Korea’s past successes and expressing hope for regional revitalization and job creation. Some comments highlight the potential for Korea to lead in AI, while others worry about the cost, the risk of government overreach, and whether the benefits will truly reach smaller companies outside the tech giants. Skeptics recall past failures and urge caution, emphasizing the need for transparent oversight and genuine public-private collaboration. The fandom around tech policy in Korea is unique—many young people see digital infrastructure as a point of national pride, but they also demand results and accountability.

Global and Cultural Context: Why This Matters for International Readers

For international readers, understanding the ‘AI Highway’ means appreciating Korea’s tradition of using state-led infrastructure to leapfrog into new economic eras. The country’s rapid transformation from war-torn poverty to tech giant was driven by bold government bets on industry and technology. Today, as AI reshapes the global economy, Korea’s approach offers a case study in how public investment can catalyze private innovation. The policy also reflects broader East Asian trends—China and Japan are making similar moves—but Korea’s unique mix of government initiative and entrepreneurial dynamism sets it apart.

Challenges Ahead: Execution, Equity, and the Role of the Private Sector

The success of the AI Highway will depend on more than just building data centers. Key challenges include ensuring equitable access for startups and regional players, managing the massive energy demands of AI infrastructure, and balancing government direction with private sector creativity. Experts warn that without careful planning, the benefits could be captured by a few large firms, leaving smaller innovators behind. President Lee has emphasized the importance of listening to industry voices and adapting policies based on real-world feedback—a lesson learned from both past successes and failures.

The Road Forward: Korea’s Digital Ambition in the AI Era

As Korea steps into the AI era, the ‘AI Highway’ stands as a bold experiment in national strategy. Will it become the backbone of a new economic miracle, or will it face the fate of past missteps? The coming years will reveal whether Korea can once again turn infrastructure into innovation, setting an example for the world in the age of artificial intelligence.