Seoul:South Korea is set to double its investment in artificial intelligence and semiconductors by 2027, reaching a record $16 billion, as announced by President Lee Jae Myung during his annual budget speech to parliament.
According to Bangladesh Sangbad Sangstha, President Lee emphasized the country's commitment to the tech industry, home to major companies like Samsung Electronics and SK hynix, which are among the global leaders in memory chip production. He detailed plans to allocate 21.3 trillion won ($16 billion) to three mega-projects semiconductors, physical AI, and AI data centers, marking a nearly twofold increase from current spending levels.
President Lee highlighted the importance of these investments in artificial intelligence and future growth sectors to enhance the economy's growth potential. Additionally, he announced a 4.7 trillion won investment in frontier AI development projects, aiming to achieve world-leading performance for a national AI model.
The budget proposal for 2027, totaling 821 trillion won, represents a 12.8 percent increase from this year, setting a new record for the nation's budget plans. With his party holding a majority in parliament, the passage of the proposal appears likely.
In defense, the president proposed an 8.2 percent increase in the defense budget to 73.3 trillion won. The government aims to acquire nuclear-powered submarines and KF-21 fighter jets, and to transform the military into a smart, elite force with the integration of AI, robots, and drones.