South Korea’s Ministry of Economy and Finance outlined plans to expand artificial intelligence spending, develop industries beyond semiconductors and broaden access to AI. In opening remarks at the ninth Digital Economy Forum in Seoul, First Vice Minister Kwon Dae-young set out three policy priorities: applying AI to manufacturing, integrating it into emerging technologies and supporting people affected by its adoption. The government’s proposed 2027 budget includes KRW 3.1 trillion for physical AI, up from KRW 0.9 trillion in 2026, to support its use in factories and robots. The KRW 200 trillion National Growth Fund would also provide support. A second priority is to integrate AI into seven SEED projects, including advanced biotechnology, small modular reactors, quantum technology and aerospace, to develop future sources of growth beyond semiconductors. To broaden access, the government plans to introduce a free AI service available to everyone by the end of 2026 and increase the AI education budget to KRW 2.1 trillion in 2027. Housing, employment and financial policies would also be used to reduce disparities across generations, regions and businesses.
South Korea’s Ministry of Economy and Finance outlines proposed physical AI budget increase to KRW 3.1 trillion for 2027
South Korea’s Ministry of Economy and Finance outlined AI policy priorities at the ninth Digital Economy Forum, where First Vice Minister Kwon Dae-young highlighted a proposed increase in physical AI spending from KRW 0.9 trillion in 2026 to KRW 3.1 trillion in 2027. Plans also include integrating AI into seven SEED projects to develop industries beyond semiconductors. Broader access measures include a free AI service by the end of 2026 and an AI education budget of KRW 2.1 trillion in 2027.