Korea's Free AI Plan: 80% Local Models, Global Fragmentation Looms

South Korea has implemented a policy requiring free AI services to operate on local models at least 80% of the time. This means foreign systems can only be used where absolutely necessary and cannot draw subsidies. The protectionist measure aims to promote domestic AI development, but it may also fragment global integrations and pose risks to foreign crypto firms.

The policy could particularly affect foreign crypto companies and AI-powered CEX/DEX or DeFi tools that rely on global integrations. On the other hand, Korean AI-token projects and local token launches may benefit from increased adoption and fundraising opportunities.