Lee proposes record 820.9 trillion won budget for 2027

South Korean President Lee Jae Myung has proposed an 820.9 trillion won budget for 2027, a record plan that increases spending on artificial intelligence, semiconductor projects and defense while awaiting approval by the National Assembly. The proposal is 12.8% larger than the 2026 budget. In his address to lawmakers, Lee presented it as an investment plan intended to support economic growth and spread its benefits more widely. The government’s figures describe a proposal, not a final spending decision. The plan allocates 21.3 trillion won to AI and three flagship projects: semiconductors, physical AI and AI data centers. Lee said that amount was nearly twice this year’s funding. The proposal also includes 4.7 trillion won for frontier AI development and 2.1 trillion won for electricity, water and industrial infrastructure. The government says the infrastructure is intended to support industrial expansion, including semiconductor production. Lee also outlined 73.3 trillion won in proposed defense spending, about 8% more than this year. He said the government planned to develop capabilities including nuclear-powered submarines and KF-21 aircraft, and to integrate AI, robots and...