South Korea’s central bank said Tuesday that it had signed a memorandum of understanding with Kakao’s artificial intelligence solutions subsidiary and will adopt the technology for its business and policymaking.

The partnership -- which came as part of the Bank of Korea’s mid- to long-term development plan, announced to commemorate its 70th anniversary this year -- marks the first time the central bank has cooperated on technology with a private firm. It has also built anticipation around the possibility that AI technology may inform the central bank’s decisions when it adjusts policy rates.

“The BOK’s AI technology project will be divided into two key areas -- AI for task support and AI for policy support,” the BOK said in a statement.

“We plan to start with AI for task support and gradually expand the partnership towards AI for policy support,” it added.

A special team called the “digital innovation division” will be launched in the second half of the year to carry out the project. It will comprise BOK officials and Kakao Enterprise employees.

The BOK is also considering partnerships with other AI firms specializing in different areas.

Kakao Enterprise was launched by the Korean IT giant Kakao in late 2019.

“We have chosen Kakao Enterprise as partner due to its advancement of existing technologies with its AI and search technology and its leading role in building an AI ecosystem,” the BOK said, mentioning the firm’s cooperation with state-run institutions including the Korean Intellectual Property Office.

By Jung Min-kyung (mkjung@heraldcorp.com)