South Korea to double AI and chip spending in 2027 budget

· Tech · South Korea

South Korea plans to double spending on artificial intelligence and semiconductors in 2027, with President Lee Jae Myung flagging a $20.5 billion investment in his budget speech. The 2027 budget will rise 12.8% to 820.9 trillion won and includes a 21.3 trillion won investment into semiconductors, physical AI and AI data centres. Seoul is targeting what it calls the world's highest-performance sovereign AI model. The plan underscores how governments are racing to secure computing capacity and chip supply.

Why it matters：State-backed AI and chip investment is becoming a core part of national industrial policy, with South Korea positioning itself among the leaders.

Key points

  • The 2027 budget rises 12.8% to 820.9 trillion won.
  • 21.3 trillion won is earmarked for chips, physical AI and data centres.
  • Lee flagged a $20.5 billion investment in his budget speech.

Sources (original reporting)

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