South Korea’s 2027 AI Budget Nearly Doubles to 21.3tn Won

South Korea’s proposed 2027 AI budget rises 97.2% to 21.3 trillion won ($15.5bn), from 10.8 trillion won in 2026. It is part of a record 820.9 trillion won national budget, up 12.8%, proposed by President Lee Jae-myung’s government. The AI budget prioritises semiconductors, robotics and physical AI, domestic AI data centres, infrastructure and advanced models. Plans include 4.7 trillion won for 10,000 next-generation GPUs and 250 billion won for a free public AI service. The wider plan includes a 162.3 trillion won Future Response Fund, largely supported by higher semiconductor tax revenue, and an 8.2% increase in defence spending to 73.3 trillion won. The government’s AI investment complements private-sector commitments of more than 800 trillion won for semiconductor fabrication and about 550 trillion won for AI data centres, involving companies such as Samsung Electronics and SK Hynix. The budget proposal is subject to parliamentary review, with approval expected by 2 December 2026. For traders, the AI budget points to sustained public support for chip and data-centre growth, but it does not indicate a direct catalyst for cryptocurrency prices.