South Korea proposes 21.3 trillion won for AI and chips in 2027
South Korea proposed allocating 21.3 trillion won to three major projects in chips, physical AI and data centers, about double this year's level.
South Korean President Lee Jae-myung told the National Assembly that the government proposes allocating 21.3 trillion won to three major projects covering semiconductors, physical AI and AI data centers, according to the Seoul Economic Daily.
The amount represents about double this year's level and includes allocating 2 trillion won to expand chip production capacity, 500 billion won for physical AI trials and 4.7 trillion won for advanced AI.
Total proposed spending on research and development is 39.5 trillion won within the 2027 budget bill.
The budget requires parliamentary approval before it takes effect.
What do these terms mean?
Korean won: the official currency of South Korea, denoted by the symbol ₩.
Physical AI: AI systems that operate inside devices or robots that interact with the real world.
Research and development: spending on scientific and engineering activities that produce new technologies and products.
Parliamentary approval: the National Assembly's endorsement of the budget before it is applied.
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