South Korean President Lee Jae-myung announced on Monday his government's intention to double spending on artificial intelligence and semiconductors by 2027, reaching a record level of $16 billion.
In his annual budget speech to parliament, Lee stated that the government will allocate 21.3 trillion won ($16 billion) to support semiconductors, physical artificial intelligence, and AI data centers, as part of enhancing the country's technological and economic standing.
He added that the investments will include an allocation of 4.7 trillion won for artificial intelligence development projects, aiming to reach advanced global levels in developing national models, which he described as strategic assets for the country.
The proposed budget for 2027 includes total spending of 821 trillion won, an increase of 12.8% from this year, making it the largest in the country's history, pending parliamentary approval.
On the defense side, the president announced plans to increase military spending by 8.2% to reach 73.3 trillion won, with plans to acquire nuclear-powered submarines and KF-21 fighter jets, as well as developing the army's capabilities using artificial intelligence, robotics, and drones.