AI Research
Nov 2, 2026
South Korea announces record budget focused on AI and semiconductor development
Nov 2, 2026
AI Summary
South Korea's President Lee Jae Myung has revealed a budget of 820.9 trillion won for 2027, marking a 12.8% increase. The budget includes significant investments in AI, with plans for a sovereign AI model and training programs for semiconductor specialists.
- The 2027 budget totals 820.9 trillion won ($610.14 billion), a 12.8% increase from the previous year.
- Allocations include 21.3 trillion won for semiconductors, AI infrastructure, and data centers, nearly double the 2026 budget.
- A specific investment of 4.7 trillion won is designated for developing a high-performance sovereign AI model.
- The government aims to train 2,000 specialists in semiconductor design and expand AI education for various demographics.
- University contract departments are being established to connect students with companies like Samsung Electronics and SK Hynix.
- The International Monetary Fund projects a 3.3% growth for South Korea's economy in 2026.
- The budget is designed to avoid a net increase in government debt, using new bonds to repay existing obligations.
- Defense spending will increase by 8.2% to 73.3 trillion won, focusing on integrating AI and robotics into military operations.
- South Korea's semiconductor exports surged 93.7% year-on-year to $115.3 billion in October, contributing to a $42.5 billion trade surplus for the month.
- The country is on track to achieve $1 trillion in annual exports, driven by strong performance in key industries.
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