President Lee Jae Myung unveils $7 billion plan to integrate AI across industries, public services, and daily life.
South Korea’s President, Lee Jae Myung, has announced plans to triple the nation’s investment in artificial intelligence (AI), part of a bold strategy to position the country among the world’s top three AI powers, alongside the United States and China.
During his annual parliamentary budget speech on Tuesday, November 4, President Lee unveiled a 10.1 trillion won ($7 billion) AI investment package aimed at transforming South Korea’s technological infrastructure and accelerating AI integration across industries, public services, and daily life.
“We will significantly expand investment to usher in the ‘AI era,’” Lee declared, calling the initiative “a major transformation aimed at propelling South Korea into the ranks of the world’s top three AI powers.”
The proposed allocation represents a threefold increase from the current year’s AI budget, reflecting the administration’s commitment to technological advancement and innovation. This initiative forms part of a broader 728 trillion won ($505 billion) national budget for 2026, an 8.1% increase from the current fiscal year.
Under the proposal:
2.6 trillion won will be directed toward integrating AI into industry, daily life, and the public sector.
7.5 trillion won will focus on developing AI talent and building supporting infrastructure.
With President Lee’s party holding a parliamentary majority, the proposed budget is expected to receive approval.
South Korea’s AI Edge
South Korea’s AI ambitions build on its strong technological base, as the country is home to Samsung Electronics and SK hynix, two of the world’s leading memory chip manufacturers. Both companies supply essential chips for AI systems and large-scale data centers, and have signed preliminary agreements with OpenAI to provide chips and equipment for the Stargate AI infrastructure project.
Global tech leaders have expressed optimism about South Korea’s AI potential. Nvidia CEO Jensen Huang announced plans to deliver 260,000 advanced AI chips to the country, calling its goal “ambitious but achievable.”
“There’s no reason why Korea cannot achieve it you have the technology, you have the software expertise, and you also have a natural ability to build manufacturing plants,” Huang said.
Significance of the AI Push
President Lee’s AI investment strategy is part of a broader effort to solidify South Korea as a global innovation hub, ensuring the country remains competitive in the rapidly evolving technological landscape. Analysts believe the move could accelerate AI adoption in sectors ranging from manufacturing to healthcare and public administration.
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