South Korea plans to nearly double spending on AI, chips and robots next year, to $16 billion
President Lee Jae Myung's record 2027 budget includes money for a homegrown AI model and for testing AI-powered robots in factories, farms and ports.
South Korea's government plans to nearly double its spending on artificial intelligence and computer chips next year, President Lee Jae Myung told the country's parliament Monday in his annual budget speech.
Lee proposed 21.3 trillion won, about $16 billion, for semiconductors, AI data centers and "physical AI," meaning AI that controls robots and machines in the real world, plus other AI investment, according to AFP. The spending is part of a record 2027 budget of 820.9 trillion won, up 12.8% from this year, according to the speech.
Where the money goes
Lee said 4.7 trillion won would support efforts to build a Korean AI model with "world-leading performance," which he called a national strategic asset. Countries increasingly want such "sovereign" AI so they do not depend entirely on American or Chinese companies.
Lee said 500 billion won, about $360 million, would pay for real-world trials of physical AI in eight key fields, including manufacturing, smart factories and defense, and 2 trillion won would expand chip production.
Why it matters here
South Korea is home to Samsung Electronics and SK hynix, two of the world's three biggest makers of memory chips. Those chips are in heavy demand for AI data centers, including those run by Bay Area companies like Nvidia, Google and Meta.
Lee's party holds a majority in parliament, so the budget is likely to pass, AFP reported. Lee also proposed raising defense spending 8.2%, partly to build forces that combine soldiers with AI-guided robots and drones.
Source: Office of the President of South Korea; AFP via New Straits Times.