Key facts
- The Ministry of Science and ICT plans to request a record 29.6 trillion won budget for 2027.
- This represents a 24.5% increase from the current year's budget of 23.8 trillion won.
- The budget aims to fund AI transition, including semiconductors, AI data centers, and physical AI.
- Significant investment is planned for AI foundation models and GPUs.
- Funding is also allocated for future growth drivers like space technology, bio, and small modular reactors.
The South Korean Ministry of Science and ICT announced its intention to seek a record budget for the upcoming year, with a significant portion earmarked for artificial intelligence (AI) and other future growth technologies. The proposed budget for 2027 stands at 29.6 trillion won (US$21.6 billion), marking a substantial 24.5 percent increase from the current year's 23.8 trillion won.
The ministry stated that the budget proposal is designed to fund the government's "tripolar megaprojects" initiative and foster emerging technologies. A substantial 9.4 trillion won will be dedicated to supporting the nation's AI transition. This includes an investment of 795.6 billion won towards the government's three key megaprojects unveiled in June, which focus on semiconductors, AI data centers, and physical AI.
Furthermore, 5.59 trillion won is allocated for securing advanced AI foundation models, along with approximately 10,000 graphics processing units (GPUs) and the necessary data for their development. To ensure continued innovation beyond AI and semiconductors, the government plans to invest 12.38 trillion won in future growth drivers. This includes 1.34 trillion won to support research and development in seven identified "seed projects," such as space technology, biotechnology, and small modular reactors.
An additional 900 billion won is designated for promoting balanced regional development. These funds will be used to support research and development laboratories located outside the capital region and to develop technologies aimed at addressing everyday social issues, according to the science ministry.