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South Korea Unveils 2027 Budget Proposal, with Focus on AI and Semiconductors
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South Korean President Lee Jae-myung unveiled the 2027 fiscal budget proposal, with total spending rising 12.8% to 820.9 trillion won, the largest budget proposal in South Korea's history. Of this, 21.3 trillion won is allocated to semiconductors, physical AI and AI data centers, nearly double the scale of 2026; another 4.7 trillion won is for R&D of independent large AI models, and there are plans to train two thousand semiconductor design specialists. The defense budget also rises 8.2% to 73.3 trillion won, and will rely on AI, robots and drones to build a manned-unmanned teaming system. Lee Jae-myung said South Korea will "boldly invest in AI and future growth engine sectors."
Report timeline
- South Korea unveils largest budget proposal in its history: 820.9 trillion won in total spending for 2027, focused on AI and semiconductors
South Korean President Lee Jae-myung unveiled a budget proposal raising total fiscal spending for 2027 by 12.8% to 820.9 trillion won, with 21.3 trillion won allocated to semiconductors, physical AI, and AI data centers, nearly double the 2026 level. Another 4.7 trillion won is earmarked for R&D on proprietary large AI models, and the plan also calls for training 2,000 semiconductor design specialists. The defense budget rises 8.2% to 73.3 trillion won, with plans to build a manned-unmanned teaming system relying on AI, robots, and drones.
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