South Korea to Allocate 4.7 Trillion Won for Sovereign AI Model
South Korean President Lee Jae-myung unveiled a record 2027 budget draft totaling 820.9 trillion won. The document allocates 21.3 trillion won for semiconductors, physical AI, and data centers, as well as a separate 4.7 trillion won for the development of a sovereign AI model.
Lee announced plans to nearly double spending on semiconductors and AI compared to 2026. According to him, the model being developed should have "the highest performance in the world"—this is the president’s assessment, not a confirmed test result.
The government also intends to train 2,000 specialists for semiconductor development and the regional industry, as well as expand AI education for students, job seekers, and current employees. Universities will continue to develop industry-linked programs that could lead to employment at Samsung Electronics and SK Hynix before graduation.
Overall budget expenditures will increase by 12.8%. Lee stated that this will barely increase the net volume of national debt, as new bonds are planned to be used to repay existing ones.
