South Korea Targets World-Leading Sovereign AI Model
South Korea Targets World-Leading Sovereign AI Model

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Arabic version: كوريا الجنوبية تستهدف نموذج ذكاء اصطناعي سياديًا رائدًا عالميًا

According to Cnbc, South Korean President Lee Jae Myung has unveiled the country’s largest-ever budget, pledging to “boldly invest in AI and future growth engines.” Total spending for 2027 is planned to rise 12.8% to 820.9 trillion won ($610.14 billion).

The plan includes 21.3 trillion won for semiconductors, physical AI and AI data centers, nearly double the 2026 level. A separate 4.7 trillion won is earmarked for a sovereign AI model that Lee said would have the “world’s highest performance.”

The government also plans to expand its technology workforce. It aims to train 2,000 specialists to lead semiconductor design and regional semiconductor industries, while broadening AI education for students, job seekers and existing workers. South Korea has established university contract departments that link students with companies including Samsung Electronics and SK Hynix through company-designed courses, financial support and potential recruitment before graduation.

Lee said the higher spending would result in “virtually no net increase in government debt,” with newly issued bonds used to repay existing debt. The budget raises defense expenditure 8.2% to 73.3 trillion won and also increases social-security spending for young people. Lee said the country would build a smart, elite and powerful military using a hybrid manned and unmanned system based on AI, robots and drones.

South Korea’s growth has been driven largely by semiconductor exports as demand for computing power rises. The International Monetary Fund forecasts 3.3% economic growth in 2026, the fastest pace since 2021. Exports rose 93.7% year on year to a record $115.3 billion in October, while shipments reached $930 billion in the first 10 months of 2026. Lee said the country was within reach of $1 trillion in annual exports.

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