South Korea Plans to Triple AI Spending to Boost Semiconductor, Auto, Robotics Leadership

November 4, 2025
South Korea Plans to Triple AI Spending to Boost Semiconductor, Auto, Robotics Leadership
  • 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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