The South Korean government has proposed a 2027 budget that allocates ₩21.3 trillion ($15.5 billion) for artificial intelligence initiatives. This represents a 97.2% increase compared to the ₩10.8 trillion ($7.8 billion) allocated in 2026. The proposal was approved by the Cabinet on September 1, 2026, and is currently under review by the National Assembly.
The strategy focuses on three main areas: semiconductors, physical AI, and domestic data centers. A significant portion of the budget, specifically ₩4.7 trillion, is earmarked for the procurement of 10,000 next-generation GPUs to support sovereign AI models. The government aims to establish full-stack domestic capabilities, reducing reliance on foreign AI systems.
Beyond public spending, the private sector is committing substantial capital to the industry. Major Korean companies have pledged over ₩800 trillion for semiconductor fabrication and ₩550 trillion for the construction of AI data centers. These investments are expected to benefit key industry players such as Samsung and SK Hynix.
The total proposed national budget for 2027 ranges between ₩820.9 trillion and ₩821 trillion, marking a 12.8% increase over the previous year. While the overall budget growth is modest, the aggressive expansion of AI funding highlights the government's role as a catalyst for infrastructure development and strategic capacity building.
