South Korea to double AI and semiconductor spending by 2027

Summarised from 3 outlets · Updated 2 Nov, 05:20 · Archive

South Korea will nearly double investment in artificial intelligence and semiconductors to nearly $16 billion.

President Lee Jae Myung announced that South Korea will invest 21.3 trillion won (nearly $16 billion) in artificial intelligence and semiconductors, nearly double this year's allocation. The investment, outlined in his annual budget address to parliament, will support three megaprojects: semiconductors, physical AI and AI data centres. A further 4.7 trillion won will target frontier AI development, aiming to create a world-leading national AI model that Lee described as a strategic asset.

The investment forms part of a record overall budget proposal featuring a 12.8 per cent increase in government spending to 820.9 trillion won. The proposal requires parliamentary approval, though Lee's Democratic Party of Korea holds the majority. South Korea is Asia's fourth-largest economy and home to two of the world's biggest memory chip makers, Samsung Electronics and SK Hynix, which have benefited from surging demand for memory chips driven by the AI boom.

Economic momentum supports the push. South Korea recorded faster-than-expected growth in the third quarter, driven by chip exports and investment. Exports totalled $930 billion from January to October and are on track to surpass $1 trillion this year, making South Korea the fourth country to reach that milestone after the United States, China and Germany.

South Korea to double AI and semiconductor spending by 2027 — Image: The Japan Times

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How it is being reported

South Korea targets 'world's highest performance' sovereign AI model in record new budgetThe 2027 budget will rise 12.8% to 820.9 trillion won, and will include a 21.3 trillion won investment into semiconductors, physical AI and AI data centers.CNBC · 2 Nov, 06:02
South Korea to pour billions into AISouth Korea to spend billions to strengthen the country's technological edge.DW News · 2 Nov, 05:01
South Korea to double spending on AI and chips in 2027President Lee Jae Myung pledged to use the technology to turn the military into a "smart, elite force."The Japan Times · 2 Nov, 04:57

In this story: South Korea · Lee Jae Myung · Democratic Party of Korea · Samsung Electronics · SK Hynix

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