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South Korea is stepping up its artificial intelligence (AI) ambitions, with President Lee Jae Myung proposing nearly $16 billion in investment for AI
and major technology projects as the country seeks to strengthen its position in the global technology race.
Speaking to the National Assembly on November 2, Lee called for parliamentary support for the government's proposed 2027 budget, which includes 21.3 trillion won ($15.97 billion) for AI and three major initiatives covering semiconductors, physical AI and AI data centres. The allocation is nearly double this year's spending.
The proposed investment reflects Seoul's efforts to build on its semiconductor strength while expanding into emerging technologies. South Korea's leading chipmakers, Samsung Electronics and SK Hynix, have benefited from growing global demand for advanced memory chips used in AI infrastructure.
The country's exports reached $930 billion between January and October, putting it on track to cross the $1 trillion mark for the first time in a calendar year. Its economy also recorded stronger-than-expected growth in the third quarter, supported by semiconductor exports and investment.
Beyond chip production, the government's plans include developing physical AI, which enables machines and intelligent systems to interact with their surroundings and perform tasks in real-world environments.
Investment in AI data centres is also intended to strengthen the computing infrastructure needed to support expanding AI applications.
The proposed 2027 budget totals 820.9 trillion won, representing a record 12.8 per cent increase from this year. It also includes a 162.3 trillion won Future Response Fund, largely backed by additional tax revenue from the semiconductor boom, to support emerging industries, young people, regional development and education.
However, the spending plan still requires parliamentary approval. Lee has urged lawmakers to pass the budget by December 2.
The proposal highlights South Korea's ambition to move beyond its established semiconductor leadership and build a broader technology ecosystem capable of competing in the next phase of the global AI race.
Speaking to the National Assembly on November 2, Lee called for parliamentary support for the government's proposed 2027 budget, which includes 21.3 trillion won ($15.97 billion) for AI and three major initiatives covering semiconductors, physical AI and AI data centres. The allocation is nearly double this year's spending.
The proposed investment reflects Seoul's efforts to build on its semiconductor strength while expanding into emerging technologies. South Korea's leading chipmakers, Samsung Electronics and SK Hynix, have benefited from growing global demand for advanced memory chips used in AI infrastructure.
The country's exports reached $930 billion between January and October, putting it on track to cross the $1 trillion mark for the first time in a calendar year. Its economy also recorded stronger-than-expected growth in the third quarter, supported by semiconductor exports and investment.
Beyond chip production, the government's plans include developing physical AI, which enables machines and intelligent systems to interact with their surroundings and perform tasks in real-world environments.
Investment in AI data centres is also intended to strengthen the computing infrastructure needed to support expanding AI applications.
The proposed 2027 budget totals 820.9 trillion won, representing a record 12.8 per cent increase from this year. It also includes a 162.3 trillion won Future Response Fund, largely backed by additional tax revenue from the semiconductor boom, to support emerging industries, young people, regional development and education.
However, the spending plan still requires parliamentary approval. Lee has urged lawmakers to pass the budget by December 2.
The proposal highlights South Korea's ambition to move beyond its established semiconductor leadership and build a broader technology ecosystem capable of competing in the next phase of the global AI race.
