South Korea unveils 2027 budget, with AI, semiconductors and data centers receiving 21.3 trillion won in support
South Korean President Lee Jae-myung announced the 2027 government budget plan on November 2, proposing to raise total annual fiscal spending to 820.9 trillion won (about 614.5 billion US dollars), a year-on-year increase of 12.8%, setting a record high. Among this, projects related to semiconductors, physical artificial intelligence (Physical AI) and AI data centers are planned to receive 21.3 trillion won in support, with an additional 4.7 trillion won invested in developing independent artificial intelligence models. South Korea Customs Service data shows that total exports in the first 10 months of 2026 reached 930 billion US dollars, surpassing 900 billion US dollars for the first time.
Why read this
AI score 58
South Korea's 2027 budget lists semiconductors, physical AI and data centers as priorities, which can be used to understand the direction and scale of its industrial investment.
Topics
Body · AI translation
South Korea Unveils Largest Budget in History: AI, Semiconductors, and Data Centers Become Investment Priorities Phoenix Tech Download the app for exclusive early access November 02, 2026 14:54:04 From Beijing
Phoenix Tech News (Editor/Song Shumei) On November 2, South Korean President Lee Jae-myung announced the government budget plan for 2027, proposing to raise total annual fiscal spending to 820.9 trillion won (approximately 614.5 billion US dollars), a year-on-year increase of 12.8%, setting a record high. Among these, semiconductors, Physical AI, and AI data centers will become key investment areas, with related projects planned to receive 21.3 trillion won in funding support.
According to the South Korean government's plan, South Korea will also invest 4.7 trillion won to develop its own artificial intelligence models, with the goal of building a domestically developed AI model with globally leading performance. At the same time, South Korea will strengthen talent cultivation in semiconductor design and AI fields, further improving the talent pool for related industries.
Lee Jae-myung stated that South Korea will enhance its economic growth potential by increasing investment in artificial intelligence and future growth industries. The budget proposal also calls for increased R&D investment in strategic technology fields to promote the development of key industries such as semiconductors.
On the export front, South Korea's semiconductor industry, driven by growing AI demand, has continued to show strong export performance. South Korean customs data shows that in the first 10 months of 2026, South Korea's total exports reached 930 billion US dollars, surpassing 900 billion US dollars for the first time. Lee Jae-myung stated that South Korea's full-year exports are expected to reach 1 trillion US dollars.