S. Korea Eyes Record USD614.5B Budget, Doubling Down on AI
(MENAFN) South Korea’s government asked parliament on Monday to approve a record $614.5 billion budget for 2027, directing massive funds toward artificial intelligence, semiconductors and other emerging technologies in a bid to accelerate economic growth, according to a South Korean news agency.
In an address to lawmakers, President Lee Jae Myung said the spending plan, 12.8% higher than this year’s, would sharpen the country’s technological edge and spread economic gains more widely.
Roughly $16 billion is earmarked for AI, chip manufacturing, data centers and related projects. A proposed $121.5 billion Future Response Fund would back young people, emerging industries and regional development.
Lee also called for an 8.2% rise in defense spending to about $54.9 billion, citing a push for greater military self-reliance and an early handover of wartime operational control from the United States.
South Korea will procure nuclear-powered submarines and KF-21 fighter jets while developing AI-powered military systems, he said, according to a South Korean newspaper.
The spending push comes as the country’s economy, estimated at about $2.25 trillion in 2026, is forecast by the Bank of Korea to expand 3.3% this year and 2.9% in 2027, driven largely by semiconductor exports.
Lawmakers from the opposition People Power Party protested the proposals, citing concerns over national debt.
Lee urged the legislature to pass the budget by the Dec. 2 statutory deadline.
In an address to lawmakers, President Lee Jae Myung said the spending plan, 12.8% higher than this year’s, would sharpen the country’s technological edge and spread economic gains more widely.
Roughly $16 billion is earmarked for AI, chip manufacturing, data centers and related projects. A proposed $121.5 billion Future Response Fund would back young people, emerging industries and regional development.
Lee also called for an 8.2% rise in defense spending to about $54.9 billion, citing a push for greater military self-reliance and an early handover of wartime operational control from the United States.
South Korea will procure nuclear-powered submarines and KF-21 fighter jets while developing AI-powered military systems, he said, according to a South Korean newspaper.
The spending push comes as the country’s economy, estimated at about $2.25 trillion in 2026, is forecast by the Bank of Korea to expand 3.3% this year and 2.9% in 2027, driven largely by semiconductor exports.
Lawmakers from the opposition People Power Party protested the proposals, citing concerns over national debt.
Lee urged the legislature to pass the budget by the Dec. 2 statutory deadline.
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