South Korean online giant Naver Corp.’s cloud subsidiary, Naver Cloud, is making significant strides in the country’s public artificial intelligence (AI) market. The company has secured a series of project deals, reflecting the intensifying competition in the sector and the government’s increased spending in this area. On Friday, Naver Cloud announced its selection by the National Information Society Agency (NIA) and the National IT Industry Promotion Agency for three projects aimed at accelerating AI utilization in the public sector and establishing a digital platform government.
Naver Cloud will collaborate with the NIA to develop hyperscale AI-based services and leverage super-giant AI platforms. Additionally, it will support the NIPA in its hyperscale AI-based academic activities. As part of the service development project, Naver Cloud plans to establish smart fire fighting safety services and assist young farmers. The company will provide comprehensive consulting and optimization tailored to the specific needs of public institutions and private companies.
A Naver Cloud official highlighted the company’s technological competitiveness and excellent infrastructure, particularly its hyperscale AI model, which has garnered high regard in the public sector. The company aims to further enhance its presence in the hyperscale AI utilization business.
South Korea has been actively working to generalize AI in the public sector. Since 2022, the Ministry of Science and ICT has been spearheading a project to expand AI through inter-ministerial cooperation. The government’s budget for this project has tripled to 24 billion won ($17.7 million) this year, up from 8 billion won in 2023.
South Korean companies, including Naver, KT Corp., NHN Corp., and Samsung SDS Co., are fiercely competing in the sector to secure new growth opportunities.