South Korea plans to devote 21.3 trillion won to AI and related infrastructure in 2027.
Why it matters: The proposal ties AI spending to advanced semiconductors, physical AI and data-center infrastructure. It signals a broad industrial strategy, rather than a standalone software investment.
- The proposed 2027 budget totals 820.9 trillion won, up 12.8% from 2026.
- The 21.3 trillion-won package covers advanced semiconductors, physical AI and AI data centers, including power, water and industrial-complex infrastructure.
- The package is nearly twice the 10.8 trillion won allocated for comparable projects in 2026, though the materials do not define whether the figures use the same accounting basis.
- A separate 4.7 trillion-won frontier-AI program aims to develop a domestic model with what the government calls world-leading performance.
President Lee Jae Myung told the National Assembly on November 2, 2026, that South Korea would invest 21.3 trillion won in an AI and related infrastructure package covering advanced semiconductors, physical AI and AI data centers.
The amount is nearly twice the 10.8 trillion won allocated for comparable projects in 2026, according to Yonhap. The available materials do not explain exactly which 2026 projects are included in that comparison or confirm that the 2026 and 2027 figures use the same accounting definition.
The government says the 2027 package will support production bases and ecosystems for advanced chips, physical AI and data centers, including electricity, water and industrial-complex capacity.
The broader budget proposal totals 820.9 trillion won, a record and a 12.8% increase from 2026, according to the South Korean government. It also includes 3.4 trillion won to preserve semiconductor competitiveness and 15 trillion won for 10 next-generation strategic technology sectors.
A separate 4.7 trillion-won frontier-AI program is intended to produce a domestically developed model and designate it as a national strategic asset, according to Deutsche Welle. The government's stated goal is world-leading performance; the materials do not establish that as an achieved result. They also do not specify whether the 4.7 trillion won is included in the 21.3 trillion-won package or represents additional funding.
The Ministry of Science and ICT has proposed a 29.6476 trillion-won 2027 budget, including 9.4 trillion won for AI, up 84.3% year over year, and 14.1 trillion won for research and development, according to its budget proposal.
By the numbers
- 820.9 trillion won - proposed total 2027 budget
- 21.3 trillion won - AI and related infrastructure package
- 4.7 trillion won - separate frontier-AI program described in the materials
Yes, but: The comparison with 2026 is not fully verifiable from the available materials because they do not define the comparable projects or confirm that both years use the same accounting basis. The materials also do not resolve whether the 4.7 trillion-won frontier-AI program is included in or additional to the 21.3 trillion-won package.