South Korean President Lee Jae Myung pledges $15.97 bn for AI, chips, physical AI and data centers in 2027 budget, nearly double 2026.
chips
| Source: Techmeme | Original article
South Korean President Lee Jae Myung pledged $15.97 billion for AI, chips, physical AI and data centers in the 2027 budget, roughly double the 2026 allocation.
South Korean President Lee Jae Myung announced on Monday that the 2027 national budget will earmark 15.97 billion USD (about 21.3 trillion won) for artificial intelligence, semiconductors, “physical AI” and data‑center infrastructure – almost twice the amount allocated for 2026. The pledge, delivered in a parliamentary address, frames AI and chips as the country’s core “future growth engines” and signals a decisive shift toward large‑scale compute capacity.
The commitment matters because South Korea’s economy still leans heavily on its semiconductor sector, and the added funding aims to cement the nation’s role in the global AI supply chain. By coupling AI research with physical‑AI hardware and new data‑center construction, the government is trying to create a vertically integrated ecosystem that can compete with the United States, China and emerging European initiatives. The scale of the spend also raises questions about energy use and emissions; as we reported on 1 Nov, AI data centres could erode years of U.S. climate progress, and a recent NAACP lawsuit highlights growing scrutiny of AI‑related infrastructure. South Korea’s move therefore sits at the intersection of economic ambition and environmental accountability.
Going forward, observers will watch how the budget line‑items translate into concrete projects – whether new chip fabs, AI‑focused research labs or green‑powered data centres will be prioritized. Parliamentary approval, the allocation of public‑private partnerships, and any accompanying sustainability standards will shape the impact of Lee’s pledge. The announcement also places South Korea alongside other major AI investors, from Hex Technologies’ $100 million Series D raise to Saudi Aramco’s multi‑billion‑dollar stake in a U.S. AI startup, underscoring a rapidly intensifying global race for AI leadership.
Sources
Back to AIPULSEN