South Korea earmarks US$15.83 billion for AI data centres and chips in 2027 budget

South Korea will lift spending by 12.8 per cent to KRW 820.9 trillion (US$610.14 billion) in 2027, the biggest budget in the country's history, President Lee Jae Myung told the National Assembly on Monday. Funding for digital infrastructure is due to nearly double from the 2026 level.

CNBC reported that KRW 21.3 trillion (US$15.83 billion) is allocated to physical AI, AI data centres and semiconductors. Another KRW 4.7 trillion (US$3.5 billion) is reserved for building a sovereign AI model. On the skills side, the government plans to train 2,000 people to lead chip design and the broader semiconductor sector. Some universities will also offer degrees run with companies, giving students a route into employers such as Samsung Electronics and SK Hynix.

In a statement on X, Lee said growth alone was not enough and had to reach individual citizens. Lee said the government would "create opportunities for youth to take on challenges, provide small business owners with the strength to rise again, and build new engines of growth for our regions". He has also said the larger budget would add virtually nothing to net government debt, since newly issued bonds would be used to repay existing debt.

The announcement follows strong export data. The Ministry of Trade, Industry and Resources said on Sunday 1 November that monthly exports reached an all-time high and that exports so far this year had passed US$900 billion. Semiconductor shipments were the highest for any October on record, and the president said annual exports of US$1 trillion were within reach.

In June, Lee launched three megaprojects intended to improve the country's standing in advanced technologies. One is a national AI data centre program that includes an 8.4 GW facility, to be built with private-sector partners by 2029.