Naver and NC Eliminated: The 2026 Race for Korea's Homegrown AI Foundation Model
Naver and NCsoft were eliminated from South Korea's national AI foundation model competition on Jan 15, 2026. LG and SKT advance as the ministry prioritizes originality.
In a turn of events that's sent shockwaves through the tech sector, Naver Cloud and NC AI have been kicked out of the government-led race to build South Korea's sovereign AI infrastructure. Meanwhile, LG AI Research emerged as the clear frontrunner, securing the highest marks across the board.
The Controversy Behind Naver NC AI Foundation Model Elimination
On January 15, 2026, South Korea's Science Ministry announced the first-round results for the national AI foundation model project. The biggest surprise was the elimination of the Naver team. According to Yonhap, experts criticized Naver's model for a "lack of originality," alleging it relied too heavily on weights from China's Qwen model.
Even if we borrow from open sources, simply using pre-trained model weights is like piggybacking on others' work.
LG Dominates as Three Teams Move Forward
The remaining contenders include SK Telecom, LG AI Research, and Upstage. Among them, LG was the star performer, ranking 1st in mathematical logic, general knowledge, and long-text comprehension. The government plans to finalize the selection of two teams by the end of this year to lead the country's AI ambitions.
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