South Korea targets world-leading sovereign AI model

Key Points:

• South Korean President Lee Jae Myung announced the largest budget in the country's history for 2027, totaling 820.9 trillion won ($610.14 billion), with a significant focus on AI and semiconductor investments.
• The budget allocates 21.3 trillion won for semiconductors, physical AI, and AI data centers, nearly doubling the 2026 level, alongside 4.7 trillion won for developing a sovereign AI model with top-tier performance.
• The government plans to train 2,000 semiconductor design specialists and expand AI education, including university programs linked to major companies like Samsung Electronics and SK Hynix to enhance job pathways.
• Defense spending will increase by 8.2% to 73.3 trillion won, aiming to develop a hybrid military system integrating AI, robots, and drones, while social security spending for youth will also rise.
• South Korea’s economy is projected to grow 3.3% in 2026, driven by a surge in semiconductor exports which hit a record $115.3 billion in October, with total exports surpassing $930 billion in the first ten months, nearing $1 trillion annually.