South Korea Plans to Triple AI Spending to Boost Semiconductor, Auto, Robotics Leadership
November 4, 2025
The process includes policy inquiries and reviews across ministries, culminating in a formal budget approval.
South Korea’s president called for tripling AI-related spending in the national budget, proposing 10.1 trillion won ($6.9 billion) to expand AI computing and manufacturing to accelerate leadership in semiconductors, automobiles, shipbuilding, and robotics.
The budget push comes amid ongoing security talks in Seoul with U.S. officials and while discussions continue about alliance issues and the timing of wartime operational control transfer to a joint command.
The main opposition PPP criticized the budget as expansionary and debt-fueled, vowing to cut cash handouts and oppose populism.
The administration pledged targeted, age-specific social support to shield vulnerable groups from rapid tech change, while pursuing bipartisan cooperation to pass the budget by the deadline.
Uncertainties linger over Nvidia GPU deliveries, tied to establishing AI data centers and power networks, with some U.S. customers reportedly facing access limits to the latest chips.
Emphasis on developing a smart elite force as part of modernization.
Economic ties with the United States are highlighted by a tariff deal, reducing uncertainty and signaling broader cooperative momentum.
The ruling party backs the budget as a path to economic recovery, defending local cash handouts under a 2026 plan.
Analysts frame the AI push as a strategic move amid global competition, with AI seen as central to future growth.
Policies aim to shield vulnerable populations from disruptive tech advances, including tailored support programs aligned with demographic shifts.
Budget deliberations will involve multiple committees and public hearings, leading to a plenary vote for final approval by the National Assembly.
Summary based on 18 sources
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Sources

ABC News • Nov 4, 2025
South Korean president calls for aggressive AI spending in budget speech
ABC News • Nov 4, 2025
South Korean president calls for aggressive AI spending in budget speech
ABC News • Nov 4, 2025
South Korean president calls for aggressive AI spending in budget speech
AP News • Nov 4, 2025
South Korean president calls for aggressive AI spending in budget speech | AP News