South Korea Unveils Record 2027 Budget Backed by AI Industry Growth

South Korea is preparing a record national budget exceeding 800 trillion won ($531 billion) for the 2027 fiscal year, supported by stronger tax income generated by the country’s fast-growing artificial intelligence and semiconductor sectors.

Budget Minister Park Hong-keun announced the plan during a national fiscal strategy meeting on Monday, noting that the government will finance the spending package through increased revenue and adjustments to existing expenditures.

The proposal is significantly higher than the current year’s budget of 727.9 trillion won, excluding supplementary spending measures.

The government has placed semiconductor manufacturing, AI data centres, and physical AI technologies at the centre of its investment strategy as it seeks to strengthen South Korea’s competitiveness in emerging technologies.

President Lee Jae Myung said authorities would take every necessary step to ensure planned corporate investments are carried out on schedule, stressing that the country must seize opportunities created by the global AI boom.

As part of the plan, South Korea will establish a Future Response Fund to invest excess tax revenues in priority areas, including youth development, innovation-driven industries, regional growth, and talent development.

The budget proposal reflects the government’s broader effort to position South Korea as a leading force in the global AI and technology landscape while supporting long-term economic growth.

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