Naver and NC Soft Out: Who Leads the South Korea Government AI Foundation Model Race?

The race for South Korea's national AI has its first casualties, and they're industry heavyweights. On January 15, 2026, the Ministry of Science and ICT announced that consortiums led by Naver Cloud and NC AI have been eliminated from the government-led competition to develop the nation's homegrown AI foundation models.

South Korea Government AI Foundation Model: First Round Winners

With the goal of becoming one of the world's top three AI powerhouses, the government is pouring resources into establishing a sovereign AI infrastructure. The three teams that cleared the first hurdle are led by LG AI Research, SK Telecom, and Upstage. LG emerged as the frontrunner, receiving the highest marks in mathematical capability and knowledge depth.

Naver's Shock Exit and the 'Qwen' Controversy

The most striking news was the elimination of Naver, often considered Korea's AI leader. Experts pointed out a lack of originality, alleging the model incorporated weights from China's Qwen model. Ryu Je-myung, Second Vice Science Minister, didn't hold back, stating that simply using pre-trained weights is like "piggybacking on others' work."