South Korea sets 21.3 trillion won AI push in record 2027 budget
What's new: The plan also carves out 4.7 trillion won for a sovereign AI model and lifts total spending 12.8% to 820.9 trillion won.
South Korea proposed a record 820.9 trillion won ($610.14 billion) budget for 2027, with President Lee Jae Myung putting artificial intelligence at the center of the plan. The package includes 21.3 trillion won for semiconductors, physical AI and AI data centers, nearly double this year’s level, as Seoul tries to sharpen its edge in the global AI race.
The proposal also sets aside 4.7 trillion won to build a sovereign AI model that Lee said should reach the world’s highest performance. The government plans to train 2,000 semiconductor specialists and expand AI education for students, job seekers and current workers. The spending push comes as chip exports fuel faster economic growth, with shipments reaching $930 billion in the first 10 months of 2026 and putting South Korea within reach of $1 trillion in annual exports.