Summary of the Core Content
South Korea is the first country in the world to make generative AI a public welfare for all its citizens: it is offering unlimited AI services to 51 million citizens for free, without any membership fees or usage limits, with the operating costs covered by the government. The service is set to be officially launched by the end of the year. On the surface, it seems like the government is distributing money to its citizens as a benefit, but in essence, it is a massive social experiment that could determine the fate of the local AI industry and even attempt to restructure the rules of future social resource distribution, with implications that go far beyond the scope of ordinary public policies.
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Detailed Explanation
1. This is not just a welfare program; it’s a “power boost” for the local AI industry
South Korea is in a tricky position in the AI field: while the world recognizes its strength in chip manufacturing, which gives it a significant advantage in AI hardware, it doesn’t have any major domestic AI models. In 2026, over 23 million South Koreans used ChatGPT, while the rest relied on Google’s Gemini. Almost no one uses locally developed AI products. This creates a vicious cycle: without users, there is no feedback for the products, which prevents them from improving; poor-quality products further discourage users, and local AI companies, after exhausting their funding, end up only being able to revise their funding plans. The government is taking direct action to break this cycle by mandating that at least 50% of the computing power used for this national AI service must come from locally developed models, and the remaining 30% must be from Korean companies’ products. Foreign AI can only be used for a few essential functions and cannot receive government subsidies. In other words, the government is essentially giving local AI companies over 50 million real users for free, bypassing the most challenging initial stages of AI development, which is more effective than any industrial subsidy.
2. Only spending a little over 20 yuan per person per year? The government’s cost-saving strategy is clever
The first reaction might be, “50 million people using AI unlimitedly must cost a lot of money.” However, South Korea’s budget for 2027-2030 is only 250 billion Korean won, which amounts to about 4800 won per person per year, or 25 yuan, which is not even enough for a month of ChatGPT membership. This is possible because the government has devised cost-saving measures, such as using low-compute-power models for simple queries and only switching to high-power models for complex tasks. The government also plans to allow moderate advertising on the platform and charge for advanced features in the future. This is not a pure welfare project; it uses initial financial resources to build a user base and then relies on commercialization for sustainable funding, with the actual costs much lower than expected.
3. Free AI doesn’t equal a raise; it might lead to more overtime for everyone
The South Korean central bank has calculated that AI could save an average of 1.5 hours of work time per week, potentially increasing productivity by 1%. However, the saved time often isn’t used for rest but instead leads to more work and longer hours without a salary increase. This is the so-called “productivity J-curve”: the tool must be in place before processes and rules can be adjusted to realize the benefits. To prevent this from happening, the government needs to provide free training for citizens, urge companies to adjust their work models, and ensure that the saved manpower is used in more creative roles. It may also need to introduce regulations to limit the excessive use of AI by companies.
4. The most bold move: changing the logic of resource distribution
Traditionally, government benefits are either cash or coupons that can only be spent on specific items. This time, South Korea is giving every citizen the most important future tool for production for free. Starting a small business or working as a freelancer becomes much cheaper with free AI services that handle tasks like writing, designing, and managing orders. Even for employees, having free AI means they can work independently and leave their company at any time, giving them more leverage in salary negotiations. This skips the traditional “earn money first, then distribute” approach, providing everyone with the tools needed to earn money before big companies and the wealthy can access advanced AI.
5. If this experiment succeeds, public services worldwide will be transformed
AI has traditionally been a paid service, accessible only to those who can afford it. South Korea’s approach shows that AI can become a public good like public schools and hospitals. Many countries are watching this experiment closely because if it truly improves productivity for everyone, the additional wealth created would far outweigh the government’s investment. The real challenge is how to adjust the distribution of these benefits; if the traffic and distribution rights end up in the hands of a few platforms, ordinary people will gain nothing and may become new targets for exploitation.
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This analysis translates the Chinese news into English, preserving the structure and tone of financial and business journalism while adapting the content to the English-speaking audience.