South Korea's Tech Surge: Trillions Boost AI and Semiconductor Development
September 2, 2026
South Korea’s 2027 budget proposal sets total expenditures at a record 820.9 trillion won, boosted by a 12.8% rise driven in part by expected tax revenue from the semiconductor sector.
The 2026 energy technology R&D budget is 733.6 billion won (about $545 million), a 48% jump and the largest on record, aimed at meeting rising AI-driven demand from data centers.
The 2027 draft government R&D budget totals 39.5 trillion won, up 11.2% from the current year, with 33.8 trillion allocated to core R&D under the Science and ICT Ministry’s Office of Science and Technology Innovation.
Sovereignty criteria for AI emphasize independence in design, implementation and training, and ongoing control and management of models and features.
Nota highlights its hardware-diverse optimization and partnerships across Nvidia GPUs, NPUs, CPUs, edge devices and robotics, framing it as a cornerstone for scalable AI infrastructure.
The Independent AI Foundation Model project was launched in mid-2025 as a government-backed, tournament-style competition to develop a national AI model, with subsidies for compute, data and researchers.
The president thanked planning and culture ministries for support and urged National Assembly cooperation to promote healthier, happier lifestyles through sports.
A citizen evaluation panel was introduced in the second phase but participation was limited; future reviews should expand user testing and real-world influence on scores.
A new 2 billion won program will dispatch instructors for toddlers in depopulated areas as part of friendly sports classes.
Details for several projects have not yet been decided as planning continues, according to a science ministry official.
Officials indicate ongoing planning with no finalized project specifics yet.
The plan seeks to improve researchers’ conditions, expand basic research, stabilize government lab labor costs, and tie R&D to quality-of-life outcomes, with gradual funding increases under fiscal discussions.
Summary based on 11 sources
