South Korean President Lee Jae Myung asked the National Assembly in Seoul on 2 November to approve a proposed 2027 budget that would increase spending on AI and other industries. The government submitted the bill in September with total spending of 820.9 trillion won, more than 10 percent above this year’s level, Yonhap reported. Lee pledged investment in AI and other prospective sources of growth during his budget address, but the proposal requires parliamentary approval.
Key points
- Lee proposed a 162 trillion won growth fund backed by additional semiconductor-related tax revenue.
- He proposed 21.3 trillion won for AI and three megaprojects: semiconductors, physical AI and AI data centres.
- The proposal sets aside 13.8 trillion won for 10 next-generation strategic technology fields.
- Lee asked lawmakers to pass the budget and accompanying legislation by 2 December.
Lee’s 162 trillion won growth fund
Lee put forward a growth fund of 162 trillion won, financed by extra tax receipts from the semiconductor boom, The Korea Times reported. In his address, he described the fund as a platform for investment and a means of managing volatile tax receipts. The government’s expectation of higher semiconductor-related revenue also accompanied the spending increase in the budget bill submitted in September.
The fund is one part of Lee’s case to lawmakers for a larger budget. He also promised that qualifying people would receive major public assistance by default, alongside higher subsistence allowances. His appeal brought those commitments before the same National Assembly that must decide whether to approve the proposed spending.
Semiconductors have figured in Lee’s earlier plans for growth. He pledged to double chip production in five years, as AI Affairs reported. The proposed growth fund gives the industry another place in his budget argument: as a source of tax revenue for public investment.
AI and three megaprojects share 21.3 trillion won
Lee proposed 21.3 trillion won for AI and three megaprojects: semiconductors, physical AI and AI data centres. He said the combined allocation was nearly twice this year’s amount. The comparison applies to that group of investments, rather than to AI spending alone. The proposed budget separately includes 13.8 trillion won for 10 next-generation strategic technology fields.
The allocations sit alongside another proposed investment in South Korean AI development. AI Affairs has reported on a planned 4.7 trillion won frontier AI project alongside Dokpamo. In his 2 November address, Lee put AI among several technology priorities for which he sought parliamentary backing, rather than presenting the 21.3 trillion won as an AI-only commitment.
The National Assembly faces a 2 December deadline
The 2 November speech was Lee’s fourth budget address since taking office. He had addressed lawmakers on supplementary budgets in June 2025 and April 2026, and on the 2026 budget in November 2025. This time, the government’s September submission gave the Assembly a proposed 2027 spending bill to consider alongside accompanying legislation.
The National Assembly has until 2 December, the deadline set by law, to approve the proposed 2027 budget and accompanying legislation. Lee asked lawmakers to pass both by that date.
