Lee Jae Myung proposes record 2027 budget with $15.97 billion for AI

South Korea's president wants 820.9 trillion won to fund AI, chips, and a new windfall fund built on semiconductor taxes South Korean President Lee Jae Myung went to the National Assembly on November 2, 2026, with a big ask. He wants lawmakers to approve a 2027 budget that puts artificial intelligence at the center of the country’s growth plan. The total comes to 820.9 trillion won ($615.62 billion), a record 12.8% jump from the previous year. Where the money goes The headline item is 21.3 trillion won ($15.97 billion) for AI initiatives and three large-scale projects. Those megaprojects cover semiconductors, physical AI, and AI data centers. That figure represents a 97.2% increase from the 10.8 trillion won set aside this year. Put simply, the AI line item nearly doubles in a single budget cycle. “Physical AI” deserves a quick explanation. It refers to artificial intelligence that operates in the real world, such as robots and machines, rather than software that lives only on a screen. Lee framed the spending as a bold bet on lifting South Korea’s long-term economic growth potential. The pitch to parliament was simple: invest heavily now in the technologies expected to define the ...