South Korea’s Lee seeks support for nearly doubling AI and chip spending in 2027

South Korea’s AI and semiconductor spending would rise to 21.3 trillion won, about $16 billion, in 2027 under a budget President Lee Jae Myung urged lawmakers to support on November 2. Lee said the allocation was nearly double this year’s amount, tying the proposed increase to stronger economic growth and a wider sharing of its benefits.

The appeal came in Lee’s annual budget address at the National Assembly, where he sought bipartisan backing for the spending bill. The government submitted the proposal in September; his speech made the case for passing it, rather than marking approval of the investments.

Total proposed government spending is 820.9 trillion won. Lee described that as a record fiscal investment and a 12.8 percent increase from this year. The proposal comes amid expectations that the semiconductor boom will lift tax revenue, giving the chip industry a role in both the government’s revenue outlook and its investment priorities.

From chip manufacturing to robotics

The 21.3 trillion-won allocation covers more than AI software. Lee outlined spending on a semiconductor manufacturing hub, data centers, physical AI and AI promotion through what he called “three megaprojects.” The planned spending stretches from the facilities that make chips and house computing equipment to robotics.

4.6 trillion wonProposed sovereign AI allocation

The proposal separately allocates 4.6 trillion won toward acquiring a sovereign, or domestic, AI model. The government’s goal is the world’s highest performance—not an achieved result.

Lee also outlined 13.8 trillion won for 10 strategic technology sectors intended to lead future economic growth. He framed the goal as securing “absolute competitiveness” in those sectors. This spending sits within the same budget pitch, which extends beyond AI and chips to other technologies the government considers future growth engines.

Lee’s case for “growth for all”

The president paired his technology priorities with a promise to spread the gains. He said the budget would turn national growth into “growth for the people,” arguing for investment in future industries while narrowing gaps.

A planned 160 trillion-won Future Fund is part of that argument. Its stated purposes include supporting younger generations, promoting growth industries and strengthening regional development. Lee called it a strategic investment platform that would help restore growth potential and reduce deep social gaps.

Lee’s address also linked the technology push to defense. He pledged to use it to turn the military into a “smart, elite force,” presenting AI as a tool for military modernization as well as economic growth.