South Korea plans to nearly double AI spending to 21.3 trillion won

President Lee Jae-myung's government wants 97.2% more AI funding in its 2027 budget, with chips, robotics and data centers at the center South Korea’s government wants to nearly double what it spends on artificial intelligence next year. The proposed 2027 budget sets aside 21.3 trillion won ($15.5 billion) for AI initiatives, up from 10.8 trillion won ($7.8 billion) in 2026. That works out to a 97.2% jump in a single budget cycle. The plan is central to President Lee Jae-myung’s push to secure the country’s place in a global AI race that is moving fast and rewarding scale. Where the 21.3 trillion won goes The spending is organized around three flagship projects: semiconductors, physical AI, and domestic AI data centers. Physical AI means AI that operates in the real world through machines like robots, rather than living only inside a chatbot window. Here is how the proposed money breaks down: Semiconductors: 3.4 trillion won. Physical AI, including robotics: 3.1 trillion won. AI data-center ecosystem support: 500 billion won. Infrastructure development: 2.1 trillion won. Frontier AI models and the ‘AI for All’ initiative: 12.2 trillion won. The single biggest line item is hardware....