President Lee Jae-myung pledges 21.3 trillion won for AI — Channel NewsAsia
South Korean President Lee Jae-myung said in Seoul that the authorities plan to invest 21.3 trillion won, or about $15.97 billion, in artificial intelligence and three megaprojects — semiconductors, physical AI, and data centers. He said this on November 2 during an address to parliament, where he sought approval for the 2027 budget, Channel NewsAsia reports.
Record increase in spending
According to the president, the planned investment volume is nearly double this year’s funding. In September, his administration proposed increasing government spending next year by a record 12.8%, to 820.9 trillion won. The aim of the plan is to strengthen the country’s technological position amid intensifying global competition in AI.
South Korea’s economy has received a significant boost from demand for advanced chips for artificial intelligence systems. This contributed to export growth and higher profits for memory chip makers Samsung Electronics and SK Hynix. In the third quarter, the country’s economy grew faster than expected due to semiconductor exports and investment.
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A fund for future development
From January to October, South Korea’s exports reached $930 billion. The country may exceed the $1 trillion mark by the end of the year and become the fourth in the world after the United States, China, and Germany to reach this figure.
Lee Jae-myung also said that the benefits of economic growth are distributed unevenly. The budget provides for a 162.3 trillion won Future Response Fund, which will be financed mainly by additional tax revenues from the semiconductor industry boom. Its funds are intended to support growth industries, young people, regional development, and education, as well as serve as a reserve in case of future declines in budget revenues.
At the same time, the administration is advancing nationwide megaprojects in chips, physical AI, and data centers. These include a private 800 trillion won semiconductor manufacturing development program in the country’s southwest, led by Samsung and SK Hynix.
