South Korea to Increase Investment in AI and Semiconductors by 2027

South Korea is set to significantly boost its investment in artificial intelligence (AI) and semiconductor technologies, planning to allocate a record 21.3 trillion won (approximately $16 billion) by the year 2027. This announcement was made by President Lee Jae Myung during his annual budget address to parliament on Monday.

The president emphasised that this investment nearly doubles the current year's budget and aims to transform the military into a "smart, elite force". The funds will cater to various aspects of technological development, from data centre upgrades to advancements in robotics.

"We will make bold investments in AI and future growth engines to boost our economy's growth potential," President Lee stated.

In addition to the AI and semiconductor funding, the government also plans to increase the defence budget by approximately eight per cent, bringing it to 73.3 trillion won. This will support the acquisition of advanced military equipment, including nuclear-powered submarines and the KF-21 fighter jets.

This financial strategy reflects South Korea's commitment to enhancing its technological infrastructure and military capabilities amid rising geopolitical tensions in the region. As governments around the world increasingly recognise the importance of AI and semiconductors, this investment signals South Korea's intent to remain competitive on the global stage in these vital sectors.

The ambitious funding is positioned as a key element of the government's broader economic strategy, designed not only to enhance military readiness but also to stimulate economic growth through advanced technological innovation and development.