Science ministry approves first small-scale private software investment

The science ministry said Wednesday it has approved a privately funded AI development platform led by the National Social Security Information Service, the first project to use a fast track created to bring new technology into small public software deals.

The project, formally called the AI-based Integrated Social Security Development Platform, is designed to cut the lag between a welfare policy change and the arrival of benefits by feeding policy shifts into the system faster.

Under the private-investment software program, a private operator covers the entire cost of building and running a system and recovers the outlay from the revenue the system generates, with no government funding involved. The program was set up through a December 2020 revision of the Software Promotion Act.

The project is the first to use a fast track for private software investments worth less than 2 billion won ($1.49 million), a track introduced so that AI and other new technology can be applied quickly to small projects. Because private money replaces government funding, the project is expected to shorten the budget approval process and allow new technology to be adopted sooner.

The project grew out of a briefing the ministry held to match public demand with private suppliers. Contractors working on software for the integrated social security information platform will use the AI development platform, which the ministry expects to speed up system improvements.

"As this is the first case of a small-scale private investment software project, I expect it to serve as a priming force that energizes the participation of small companies with innovative technology," said Lee Do-kyu, head of the ministry's information and communication policy office.

"Through the third-party notice, various companies with strong technology and expertise can participate beyond the initial proposer, so I hope many capable companies will take interest and join," he said.