Seoul, May 28 (IANS) South Korea will spend some 480 billion won ($349.1 million) this year to develop innovative products and services based on artificial intelligence (AI), such as AI factories, AI chips and self-driving cars, the industry ministry said on Wednesday.

The Ministry of Trade, Industry and Energy said the investment is aimed at promoting the industrial use of AI to foster new growth engines and advance the country’s manufacturing industry, reports Yonhap news agency.

In detail, the ministry will invest 62.7 billion won in developing AI factories, 21.6 billion won in AI chip technologies and 120.6 billion won in autonomous driving technologies.

Some 68 billion won has been allocated for advanced bio projects, 29.6 billion won for intelligent robot development and 13.8 billion won for advancements in display technologies.

In addition, the government plans to create foundational AI models that could be used by small and medium-sized enterprises for quality inspection, precision control and other manufacturing processes.

It also aims to develop AI models that can predict and prevent the generation of impurities throughout the pharmaceutical manufacturing process for the bio industry.

The envisioned projects also include developing key components that determine AI performance, such as AI semiconductors and sensors, according to the ministry.

“Given South Korea’s position as the world’s fourth-largest manufacturing powerhouse, the area with the highest potential to lead and gain a competitive edge in the global AI race is industrial AI,” the ministry said, vowing to expand investment in the field.

Meanwhile, South Korean tech giant Naver said on Wednesday it has completed a joint venture agreement with Saudi Arabia’s National Housing Company (NHC) to develop a digital twin platform in the Middle Eastern country.

The newly established entity, Naver Innovation, is backed by joint investment from Naver Cloud and NHC’s subsidiary, NHC Innovation, according to the company.

It will be Naver’s first business operation under Naver Arabia, its dedicated base for Middle East operations.

Naver Innovation will lead Naver’s digital twin platform projects in Saudi Arabia and other smart city initiatives, including the development of a mapping application for public transportation.

—IANS

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