The government plans to boost investment in AI and semiconductors in its record 2027 budget of nearly 821 trillion won to counter low growth and strengthen Korea’s tech position. It has set semiconductors, physical AI and AI data centers as its three megaprojects, backed by 21.3 trillion won. President Lee Jae Myung and Budget Minister Park Hong-geun said the budget will support future growth, a Future Fund and spending reforms.
Budget Minister Park Hong-geun briefs the Cabinet on the 2027 budget proposal during a Cabinet meeting presided over by President Lee Jae Myung at Cheong Wa Dae, Tuesday. Yonhap
The government plans to significantly ramp up investment in artificial intelligence (AI) and semiconductors to prevent structurally low growth from becoming entrenched and strengthen Korea’s position in the global tech race through its record-high 2027 budget of nearly 821 trillion won ($599 billion), the Ministry of Planning and Budget said Tuesday.
It has designated semiconductors, physical AI and AI data centers as the three megaprojects in its plan to provide comprehensive support, ranging from key infrastructure to technology development, with an injection of 21.3 trillion won.
President Lee Jae Myung said at a Cabinet meeting that a major shift is underway in the global industrial order as the AI revolution, energy transition and restructuring of global supply chains converge to reshape the global economy and industries.
