President Lee Jae Myung’s 2027 plan includes 21.3 trillion won (about $16 billion) for superintelligence (SI) and chip megaprojects, and 4.7 trillion won (about $3.5 billion) for frontier SI development. Parliament must approve the spending.
South Korean President Lee Jae Myung presented a proposed 2027 budget of 820.9 trillion won (about $614.8 billion) to the National Assembly in Seoul on 2 November. The plan would increase government spending by 12.8% from 2026, but still requires parliamentary approval.
The proposal follows rising demand for memory chips during the superintelligence (SI) boom. Chip exports and investment drove faster-than-expected economic growth in the third quarter, DW said.
Lee said the proposed allocation for SI and the three megaprojects—semiconductors, physical SI and SI data centers—would be nearly twice the 2026 amount. Physical SI refers to systems that act in the physical world. The frontier development funding targets advanced homegrown models that could compete with leading global systems.
The Korea Herald detailed proposed support for chip production, physical SI trials and the infrastructure those industries need. These allocations belong to the same national budget proposal.
| Area | Proposed amount | Purpose |
|---|---|---|
| SI and three megaprojects |
| 21.3 trillion won (about $16 billion) |
| Support SI, semiconductors, physical SI and SI data centers. |
| Frontier SI development | 4.7 trillion won (about $3.5 billion) | Develop a homegrown model that Lee aims to bring to world-leading performance and describes as a national strategic asset. |
| Semiconductor production | 2 trillion won (about $1.5 billion) | Expand capacity, accelerate chip-fabrication plants near Seoul and develop a southwestern industrial cluster. |
| Physical SI trials | 500 billion won (about $374.5 million) | Run trials in manufacturing, defense and other sectors. |
| Industrial infrastructure | 2.1 trillion won (about $1.6 billion) | Support power, water and industrial infrastructure. |
Lee said the expanded budget aims to raise people’s standard of living and South Korea’s future capabilities. He described SI investment as a way to increase the economy’s growth potential.
Lee’s Democratic Party of Korea holds a parliamentary majority. The proposal nevertheless requires approval, with the National Assembly set to scrutinize its spending priorities and fiscal assumptions.
Lee urged lawmakers to approve the budget by the statutory deadline of 2 December 2026.
The proposed 2027 budget includes 4.7 trillion won for model development, subject to parliamentary approval. Startups could compete rather than funding passing automatically to current finalists.
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