South Korea announces record investments in artificial intelligence

South Korea plans to allocate 21.3 trillion won, equivalent to approximately €14.3 billion, for the development of artificial intelligence, semiconductors and AI-dedicated data centers in its 2027 budget. The announcement was made on Monday by President Lee Jae Myung in a speech delivered in Parliament.

The amount is nearly double this year's allocation and represents one of South Korea's most significant increases in technology investment. Of the total, 4.7 trillion won, approximately €3.16 billion, will be directed toward projects to develop a cutting-edge artificial intelligence model, considered a strategic national asset.

The plan is part of the 2027 draft budget, with a total value of 821 trillion won, 12.8% higher than the 2026 budget and the largest draft budget in the country's history. The document must be approved by the National Assembly, where the president's party holds a majority.

The defense budget is expected to increase by 8.2%, to 73.3 trillion won. The government is targeting the acquisition of nuclear-powered submarines and KF-21 aircraft, as well as the integration of systems based on AI, robots and drones. South Korea is thus seeking to compete with the United States and China in AI, also relying on its global leaders in memory chip production, Samsung Electronics and SK hynix.