South Korean President Lee Jae Myung asked the National Assembly on Monday to pass a 2027 budget that puts 21.3 trillion won (about $16 billion) into AI and chips. Lee said the figure is nearly double this year's amount for the same purpose.
The full budget bill, which the government submitted in September, proposes 820.9 trillion won ($614.5 billion) in total spending. Lee called it the biggest fiscal investment in the country's history, with a 12.8% increase that is the largest annual growth on record. The government expects higher tax revenue from the semiconductor boom to help pay for it.
“We will make bold investments in AI and future growth engines to boost our economy's growth potential”— Lee Jae Myung, President of South Korea
The 21.3 trillion won is earmarked for what Seoul calls its three megaprojects: a semiconductor manufacturing hub, AI data centers, and physical AI, which covers robotics. Lee first announced the megaprojects in June as a public-private partnership spanning chip production hubs, robotics R&D centers and gigawatt-scale AI data centers.
Key facts
- 01President Lee Jae Myung presented the 2027 budget to the National Assembly on November 2, 2026.
- 02The plan puts 21.3 trillion won (about $16 billion) into AI and chips, which Lee said is nearly double this year's amount.
- 03Total proposed 2027 spending is 820.9 trillion won ($614.5 billion), up 12.8%, the largest annual increase on record.
- 04A separate allocation of roughly 4.6 trillion won targets a sovereign AI model with world-leading performance.
- 0513.8 trillion won goes to 10 strategic technology sectors meant to drive growth beyond semiconductors.
A separate line of roughly 4.6 trillion won funds frontier AI development aimed at acquiring a sovereign AI model with the world's highest performance. Lee described the goal as world-leading performance for South Korea's own AI model, which he called a national strategic asset.
The budget also includes a new Future Fund of about 160 trillion won, backed by windfall tax revenue from the semiconductor boom. The fund is meant to support younger generations, new growth engines and regional development, and the AI and chip megaprojects sit inside it.
Another 13.8 trillion won goes to 10 strategic technology sectors that the government wants to carry growth after semiconductors. A further 2.1 trillion won covers electricity, water supply and industrial-complex infrastructure.
Defense spending rises to 73.3 trillion won, about 8% above this year. Lee said the money would help rapidly transform the military into a smart, elite force, with nuclear-powered submarines and KF-21 fighter jets among the stated goals.
Lee delivered the speech at the National Assembly, where he called for bipartisan support to pass the 2027 budget bill.
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