South Korea to pour billions into AI
South Korea plans to nearly double its investment in artificial intelligence and semiconductors to $15.97 billion next year.
President Lee Jae Myung announced the plan in his annual budget address to parliament on Monday.
The administration will invest 21.3 trillion won, or nearly $16 billion, in AI and three megaprojects focused on semiconductors, physical AI, and AI data centers.
This amount is nearly double the investment made this year.
National AI strategy
The budget includes 4.7 trillion won specifically for frontier AI development projects.
The goal is to achieve world-leading performance for the country's own AI model, a strategic asset.
Record spending and economic context
The proposal represents a record budget for 2027, featuring a 12.8% increase in government spending to 820.9 trillion won.
The Democratic Party of Korea holds the parliamentary majority and must approve the plan.
South Korea is Asia's fourth-largest economy and home to two of the world's biggest memory chip makers, Samsung Electronics and SK Hynix.
The AI boom has sent demand for memory chips soaring, driving faster-than-expected economic growth in the third quarter.
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