President Lee Jae Myung asked parliament to back an 820.9 trillion won budget that lifts spending on AI and chips to 21.3 trillion won.
Tamrah News Desk | November 2, 2026
South Korea AI investment will nearly double next year, President Lee Jae Myung told the National Assembly on Monday, as he asked lawmakers to approve a record budget of 820.9 trillion won for 2027. According to the Korea Herald, the proposal is 12.8 percent larger than this year’s spending and is the biggest fiscal outlay in the country’s history. Lee said the plan is meant to lift the economy’s growth potential and share the gains more widely.
Korea JoongAng Daily reported that Lee pledged to
“boldly invest in AI and future growth engines”
while urging both parties to back the 2027 budget.
What Does South Korea AI Investment Include?
The Seoul Economic Daily reported that 21.3 trillion won will go to three megaprojects covering semiconductors, physical AI and AI data centers, nearly double this year’s level. The Jakarta Post put the sum at about $16 billion and said it stretches from data centers to robotics. According to Digital Today, the government will also commit 4.7 trillion won to a frontier AI project that aims to build a domestic AI model described as a national strategic asset. The same outlet reported a program called AI for All, which will bring public AI agents to government services.
The Seoul Economic Daily added that 2 trillion won of the 21.3 trillion won push will support a chip production base, while research and development funding reaches a record 39.5 trillion won. A further 13.8 trillion won is reserved for strategic technologies grouped under NEXT 10. Lee said the government would make sure companies
“do not miss their investment windows because of inadequate infrastructure”
that outlet reported.
How Lee Framed the Record Budget
The Korea Herald reported that Lee built the 2027 budget on three principles. Spending should be bold but free of waste, direct spending should take priority over tax breaks, and regional areas should receive preferential treatment. Digital Today said Lee called for growth that benefits many people rather than a few regions, classes and companies. The Korea Herald added that the plan also aims to narrow the wealth gap.
Defense and Military AI
According to Aju Business Daily, defense spending will rise 8.2 percent to 73.3 trillion won as the government works to complete the transfer of wartime operational control from the United States during Lee’s term. The Jakarta Post reported that Lee wants to build integrated manned and unmanned systems using AI, robots and drones to modernize the armed forces.
Why the Chip Boom Matters
Yonhap news agency reported, in a story carried by the Korea Herald, that the government submitted the bill in September amid expectations of higher tax revenue from a semiconductor boom. According to Reuters, as carried by The Star, finance minister nominee Lee Hyoung il vowed on September 2 to move quickly on mega projects for AI investments. Reuters reported that the government expects tax revenue to rise 40.7 percent next year, with corporate tax receipts more than doubling as chipmakers earn record profits. Khaleej Times had earlier reported that the government flagged spending above 800 trillion won on the back of stronger AI chips revenue.
How the Plan Builds on Earlier Pledges
The Korea Times reported last year that the 2026 budget set aside 10.1 trillion won for AI, more than triple the previous level, within a record 728 trillion won budget. Al Jazeera reported that Science Minister Bae Kyung hoon announced an extra AI data centre of 10 gigawatts by 2035, as part of an investment of about 1,000 trillion won, or $648 billion.
Tamrah News has also followed how other governments back AI builders, including the Dubai AI Agent competition and wider artificial intelligence coverage.
Will Parliament Pass the 2027 Budget?
Lee asked lawmakers to finalize the 2027 budget and related bills by the statutory deadline in December, the Korea Herald reported. The Jakarta Post noted that passage is considered likely because Lee’s party holds a majority in the National Assembly. Aju Business Daily said the proposal compares with 727.9 trillion won in spending this year.
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Conclusion
The South Korea AI investment plan in Lee Jae Myung’s 2027 budget links a record budget to AI chips, physical AI and AI data centers, with 21.3 trillion won at its centre. Readers following the South Korea 2027 budget or the Lee Jae Myung budget speech should watch the National Assembly review, which is the next step before the spending becomes final.
