South Korea Unveils Largest-Ever Fiscal Spending Plan: 2027 Budget Reaches 821 Trillion KRW, Betting on AI and Chip Industries

The South Korean government has unveiled its largest-ever fiscal spending plan, with a total budget of 821 trillion KRW for 2027, an increase of 12.8% from 2026, marking the highest annual increase on record. The funds will be focused on artificial intelligence and chip industries, with the aim of seizing a leading position in the global AI race.

This budget adjustment reflects a major shift in South Korea's fiscal policy. Under President Lee Jae-myung, the government has abandoned the previous administration's austerity strategy and adopted an expansionary fiscal policy, seeking to drive technological industrial upgrading through large-scale public investment, especially in key areas such as AI computing power and semiconductor manufacturing.

For the global AI industry, South Korea's increased investment means that competition among countries over AI infrastructure and chip supply chains is intensifying further. South Korea is home to leading chip companies such as Samsung and SK Hynix. This fiscal support may accelerate the development of advanced processes and AI-specific chips, and could also have an indirect impact on the layout of the global AI industry chain.

It is worth noting that the budget bill still requires parliamentary review, and the final implementation intensity and specific allocation plan remain to be clarified. However, this signal shows that AI has become a core direction of many countries' national strategies, and fiscal resources are rapidly tilting toward it.

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