Seoul:President Lee Jae Myung has announced plans for substantial investment in artificial intelligence (AI) and other future growth engines to enhance South Korea's economic potential and promote "growth for all." In a speech at the National Assembly, Lee emphasized the necessity of bipartisan support for the 2027 budget bill.
According to Yonhap News Agency, President Lee described the 2027 budget as a transformative proposal designed to position South Korea as a future leader, turning national growth into opportunities for the people. He emphasized the importance of intensively investing in future growth sectors and bridging societal gaps to achieve inclusive growth.
The proposed budget, submitted to the National Assembly in September, outlines a total government expenditure of 820.9 trillion won (approximately US$614.5 billion) for the next year, marking a more than 10 percent increase from the current year. This expansion is driven by the anticipation of increased tax revenues, particularly from the burgeoning semiconductor sector.
The budget includes plans for a 160 trillion-won Future Fund intended to support younger generations, economic growth engines, and regional development. Of this fund, 45.4 trillion won is allocated for the upcoming year. President Lee described this fund as a strategic investment platform essential for boosting the nation's growth potential and addressing social inequalities.
The budget's significant growth, a 12.8 percent increase, is underpinned by expectations of higher tax revenues, especially from successful semiconductor companies like Samsung Electronics Co. and SK hynix Inc. The government plans to allocate 21.3 trillion won to develop a semiconductor manufacturing hub and data centers, and advance physical AI through its "three megaprojects."
Additionally, 4.6 trillion won is earmarked for acquiring a world-leading sovereign AI model, and 13.8 trillion won will be devoted to securing competitiveness in ten strategic technology sectors. President Lee also highlighted initiatives to mitigate economic inequality through "three livelihood projects" focused on providing employment, financial, and housing support.
The defense budget is also set to rise by 8.2 percent to 73.3 trillion won, with plans to acquire military assets necessary for Seoul to assume wartime operational control from Washington. President Lee urged legislative cooperation to pass the budget by the December 2 deadline, amidst protests from the opposition People Power Party regarding national debt concerns.