In 2027, South Korea will significantly increase its investment by allocating 21.3 trillion won (equivalent to 16 billion dollars) to artificial intelligence and semiconductor costs. Lee Jae-myung, the President of South Korea, stated in his annual speech to the parliament that this budget will be dedicated to areas including data centers and robotics.
Investment in the Future
Lee emphasized, "We will continue bold investments in artificial intelligence and future growth engines to enhance our economic growth potential." He also noted that this figure is nearly double the projected costs for the current year.
Read more: Clarification of the Implementation of Foreign Arbitration Awards According to Omani Law
The South Korean government also intends to increase the defense budget by about 8 percent, bringing it to 73.3 trillion won. This budget increase is aimed at securing nuclear submarines and KF-21 fighter jets. Lee stated that Seoul is looking to "rapidly transform the military into an intelligent and elite force by creating integrated human and non-human systems based on artificial intelligence, robots, and drones."
Security Challenges and Recent Developments
Meanwhile, North Korea has recently conducted multiple weapons tests, including a precision-guided torpedo system and a medium-range hypersonic missile, both of which are claimed to utilize artificial intelligence technology. Last year, Seoul signed an agreement with Washington to build nuclear submarines, which Pyongyang described as "a dangerous attempt to confront."
The 2027 budget totals 821 trillion won, which is 12.8 percent more than the current year and the largest budget in South Korean history. Given that Lee's party holds a majority in the parliament, the likelihood of this budget being approved is very high.
South Korea, home to companies like Samsung Electronics and SK hynix, two of the largest memory chip producers in the world, is facing increased demand for chips due to the AI boom. This boom has also led to higher wage demands in tense negotiations at both companies.
Lee also announced that the government will invest 4.7 trillion won in border AI development projects, aiming to achieve world-leading performance for domestic AI models, which are considered a national strategic asset.
Read more: Maruti Suzuki Recorded Its Highest Monthly Sales in October · Global Investment Forum Held in Doha with the Presence of International Officials
