South Korea doubles AI and chip spending to $16 billion for 2027

The South Korean Government plans to allocate 21.3 trillion won ($16 billion) to artificial intelligence and semiconductors in 2027, nearly double its 2026 spending, President Lee Jae-myung said in his annual budget speech to parliament, according to the Taipei Times.

The funding will cover chip manufacturing, data centers and robotics. Of the total, 4.7 trillion won will support advanced AI projects, including work on a domestic AI model.

South Korea's overall 2027 budget proposal totals 821 trillion won, up 12.8% from 2026. The government also plans to raise defense spending by about 8% to 73.3 trillion won, including funding for military systems that combine AI, robots, drones and crewed equipment. "We will make bold investments in AI and future growth engines to boost our economy's growth potential," Lee said.