Addressing the National Assembly on Monday, Lee urged lawmakers to support the passage of the government's proposed 2027 budget, which предусматри total expenditure of 820.9 trillion won, equivalent to approximately $614.5 billion. The proposed spending represents an increase of more than 10% from the current year's budget and is the largest in the country's history.
Lee said the government would prioritise investment in artificial intelligence and future growth industries to raise South Korea's economic potential. The budget includes plans for a 160 trillion-won Future Fund intended to support younger generations, promote strategic industries and encourage regional development. Of that amount, 45.4 trillion won is expected to be allocated in the first year.
A significant portion of the proposed spending is directed towards strengthening the country's semiconductor and artificial-intelligence infrastructure. The government plans to allocate 21.3 trillion won to three major projects covering a semiconductor manufacturing hub, data centres and the development of physical AI.
A further 4.6 trillion won is earmarked for efforts to secure a sovereign AI model with internationally competitive performance, while 13.8 trillion won is intended to strengthen South Korea's position across 10 strategic technology sectors.
The investment drive reflects the growing importance of artificial intelligence to South Korea's industrial base. The country is home to major semiconductor manufacturers, including Samsung Electronics and SK hynix, which have benefited from rising demand for advanced chips used in AI infrastructure.
The government expects stronger semiconductor-related tax revenues to support its spending plans. However, the proposed expansion has also raised concerns over public borrowing and the long-term sustainability of government finances.
Members of the main opposition People Power Party criticised the scale of the proposed budget, arguing that higher expenditure could increase national debt. Lee has called for bipartisan cooperation and asked lawmakers to pass the bill by the statutory deadline of 2 December.
Beyond technology investment, the budget includes measures intended to address employment, financial and housing pressures among lower-income households. The government has presented these initiatives as part of a broader effort to ensure that economic growth benefits a wider section of the population.
For South Korea, the challenge will be to convert public investment into commercially successful technologies, stronger productivity and sustainable employment. The budget signals an ambitious commitment, but its effectiveness will depend on implementation, private-sector participation and the country's ability to maintain its competitive position in an increasingly demanding global technology market.
