South Korea Unveils ‘World-Class’ Sovereign AI in Record 820.9 Trillion Won Budget
Seoul approves record 2027 budget featuring $15.8 billion for chips and a sovereign AI model. President Lee Jae Myung targets global tech leadership.
POLICY WIRE — Seoul, South Korea — The South Korean government has launched an aggressive technological offensive, allocating nearly double the previous year’s funds to dominate the global artificial intelligence landscape. A new fiscal plan prioritizes sovereign innovation and hardware infrastructure at an unprecedented scale.
President Lee Jae Myung officially presented the nation’s largest budget to date on Monday, setting total 2027 expenditures at 820.9 trillion won, equivalent to approximately $610.14 billion. This figure represents a significant 12.8 percent increase in government spending compared to the current year.
At the heart of this financial push is a 21.3 trillion won allocation—roughly $16 billion—dedicated to semiconductors, physical AI systems, and data centers. This investment level nearly doubles the funding provided in 2026, signaling a decisive shift in how Seoul approaches the critical components of the AI supply chain.
Beyond hardware, the administration is targeting software autonomy with a separate 4.7 trillion won budget line. This capital is specifically earmarked for the development of a sovereign AI model, which presidential officials have ambitioned to achieve the highest performance standards in the world.
The strategy also places heavy emphasis on human capital. The government intends to cultivate 2,000 specialized experts designed to lead semiconductor design efforts and guide the broader regional chip industry. School curricula will also expand to include more advanced AI education for students.
Reporting by Policy-Wire (PW)
