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Weekly Focus | Economic Trends : South Korea Bets Big on AI with Record 2027 Budget
South Korea has unveiled a record KRW 820.9 trillion budget for 2027, representing a 12.8% increase from the previous year, with artificial intelligence, semiconductors, and strategic technologies at the heart of its economic growth strategy.
On November 2, President Lee Jae-myung presented the government's 2027 budget proposal to the National Assembly, outlining an ambitious investment strategy under the vision of "Growth for All." The plan aims to strengthen South Korea's economic competitiveness while ensuring that technological progress contributes to broader economic development.
One of the key initiatives is the establishment of a KRW 160 trillion Future Fund, designed to support emerging industries, younger generations, and regional development. The fund is expected to play a central role in boosting the country's long-term growth potential and reducing economic disparities.
Artificial intelligence and advanced technologies are among the government's main investment priorities. The proposed budget includes KRW 21.3 trillion for semiconductor manufacturing infrastructure, data centers, and physical AI. An additional KRW 4.6 trillion will support the development of a globally competitive sovereign AI model, while KRW 13.8 trillion will be allocated to 10 strategic technology sectors expected to drive future economic growth.
These investments come as South Korea seeks to consolidate its position in the global technology landscape. The government's strategy also reflects a broader international shift toward technological sovereignty, AI infrastructure, and next-generation industries.
For the French-Korean business community, these priorities could create new opportunities for cooperation in AI, semiconductors, research, and industrial innovation, particularly as both countries continue to develop their technological capabilities.
The proposed budget remains subject to parliamentary approval, with its implementation expected to shape South Korea's economic and industrial priorities in 2027.
Sources : Yonhap News Agency, 2 november 2026 ; The Korea Herald, 2 november 2026.
