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The AI revolution represents a civilizational turning point surpassing past transformations such as the agricultural, industrial, and information revolutions, fundamentally reshaping human decision-making, labor, and global power structures. The 2016 AlphaGo match served as a critical inflection point that accelerated global AI investment, while South Korea failed to fully capitalize on this opportunity as China rapidly advanced through state-led strategies and technological mobilization. Today, the AI race is dominated by U.S.–China competition, with China demonstrating strong advantages in speed, commercialization, talent, and national innovation systems. In contrast, South Korea faces structural challenges including talent misallocation, regulatory rigidity, and political inaction. To remain competitive, Korea must pursue bold reforms such as attracting global talent, transforming education, leveraging its manufacturing strengths in Physical AI, easing R&D constraints, and strengthening AI-driven diplomacy. As the AI revolution is irreversible, Korea must act decisively to turn this moment of crisis into an opportunity for national advancement.