South Korea Pledges $16 Billion for AI in 2027 Budget

South Korea has proposed roughly $16 billion for semiconductors, physical AI, domestic models and data centers in its 2027 budget.

The proposal places the spending across four areas: chip development, physical AI, domestically produced models and data center capacity. The budget figure covers those items together rather than a single program.

The proposal reflects national competitiveness strategies that link research, industrial policy and infrastructure investment at a scale described as unprecedented. For companies that sell into or partner with South Korean chip, AI model and data center programs, the budget sets out where public money is directed. The summary does not specify funding by category, timing within the budget year, or which agencies would administer the spending.