Canada, South Korea Team Up on AI: Strategic Pact

Published Date : 12/08/2025 

Canada and South Korea, both leaders in artificial intelligence (AI), are deepening their bilateral relations through a Track 1.5 Dialogue on AI. This initiative aims to enhance collaboration in AI governance, innovation, and commercialization. 

Canada, a global leader in foundational research and policy governance in artificial intelligence (AI), is a natural partner for South Korea, which has emerged as a frontrunner in AI adoption, legislation, and commercialization. Bilateral relations between the two countries have steadily deepened over the past decade.

The signing of the Canada–Korea Free Trade Agreement in 2014 and the elevation of ties to a Comprehensive Strategic Partnership (CSP) in 2022 have laid the groundwork for more institutionalized cooperation across academia, industry, and government. The CSP Action Plan, released in 2024, has further solidified these ties with recent high-level agreements on critical minerals, energy security, and strategic defense coordination.

Building on this momentum, the Asia Pacific Foundation of Canada (APF Canada), South Korea’s Science and Technology Policy Institute (STEPI), and the Canadian Embassy in South Korea convened an inaugural Track 1.5 Dialogue on Artificial Intelligence in Seoul on July 9, 2025. This dialogue brought together senior representatives from government, industry, and academia from both countries to explore avenues for bilateral collaboration on AI governance, innovation, and commercialization. The discussions reflected a shared recognition that AI is central to both countries’ economic and strategic futures.

New governments in both Canada and South Korea have identified AI as a strategic national priority. Canada, which holds the 2025 G7 Presidency, has championed an AI-forward agenda focused on innovation, infrastructure, and public-sector adoption. Meanwhile, South Korea is chair of the Asia-Pacific Economic Cooperation (APEC) forum in 2025 and has placed AI and digital transformation at the heart of its regional agenda. This unique convergence of leadership and policy momentum made this Track 1.5 dialogue especially timely.

Key themes included aligning regulatory frameworks, fostering AI talent, expanding energy infrastructure to support AI adoption, and identifying opportunities for joint leadership in multilateral and Indo-Pacific regional initiatives. The dialogue also emphasized the need to move beyond aspirational rhetoric to focused implementation, tangible steps to promote adoption and commercialization, and leveraging the complementary strengths of both countries — Canada’s leadership in AI research and Korea’s edge in advanced hardware and practical applications.

Key Takeaways

Energy as an Enabler: South Korea’s growing energy demands to power AI can be met through Canadian liquefied natural gas (LNG) exports and nuclear partnerships.

Complementary Strengths, Shared Standards: Unlocking the full potential of bilateral cooperation requires alignment on intellectual property (IP) protection, data governance, data collaboration, and technical interoperability — foundations for joint commercialization and innovation.

Global Influence Through Partnership: Canada’s role as a G7 rule-setter and South Korea’s growing leadership in Global South and Indo-Pacific ‘minilateralism’ can be harnessed to shape inclusive, secure, and forward-looking AI governance frameworks.

Canada-Korea Commercial Opportunities: Strong opportunities for commercial ties extend beyond energy and include the potential use of South Korea’s hardware and AI chips in Canadian data centres and compute infrastructure, and the potential for South Korean firms to license and help globally scale Canadian AI solutions. 

Frequently Asked Questions (FAQS): 

Q: What is the significance of the Track 1.5 Dialogue on Artificial Intelligence between Canada and South Korea?

A: The Track 1.5 Dialogue on Artificial Intelligence is significant as it brings together senior representatives from government, industry, and academia to explore avenues for bilateral collaboration on AI governance, innovation, and commercialization. It reflects the shared recognition that AI is central to both countries' economic and strategic futures.

Q: What are the key themes discussed during the dialogue?

A: Key themes included aligning regulatory frameworks, fostering AI talent, expanding energy infrastructure to support AI adoption, and identifying opportunities for joint leadership in multilateral and Indo-Pacific regional initiatives. The dialogue also emphasized the need for focused implementation and leveraging the complementary strengths of both countries.

Q: How does Canada's G7 Presidency in 2025 impact the dialogue?

A: Canada's G7 Presidency in 2025 provides a platform for championing an AI-forward agenda focused on innovation, infrastructure, and public-sector adoption. This aligns with South Korea's chairmanship of the APEC forum in 2025, creating a unique convergence of leadership and policy momentum.

Q: What are the commercial opportunities for Canada and South Korea in the AI sector?

A: Commercial opportunities include the potential use of South Korea’s hardware and AI chips in Canadian data centers and compute infrastructure, and the potential for South Korean firms to license and help globally scale Canadian AI solutions. Energy cooperation, such as Canadian LNG exports to meet South Korea's energy demands, is also a significant area.

Q: How can Canada and South Korea shape global AI governance frameworks?

A: Canada and South Korea can shape global AI governance frameworks by leveraging their roles as G7 and APEC leaders. They can promote inclusive, secure, and forward-looking governance through joint leadership in multilateral and Indo-Pacific regional initiatives, aligning on intellectual property protection, data governance, and technical interoperability. 

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