South Korea Proposes Record Budget to Accelerate AI Development
Presenting the spending plan to parliament, President Lee Jae Myung said the proposed budget represents a 12.8% increase from the current year's allocation and is designed to enhance the country's technological capabilities while ensuring that economic growth benefits a wider segment of society.
Around $16 billion is earmarked for artificial intelligence development, semiconductor manufacturing, data center infrastructure and related technological initiatives.
The proposal also includes a $121.5 billion Future Response Fund intended to support younger generations, promote emerging industries and encourage development across different regions of the country.
In addition, Lee called for an 8.2% rise in defense expenditure, bringing military spending to approximately $54.9 billion. The increase is intended to strengthen South Korea's independent defense capabilities and accelerate the transfer of wartime operational control from the United States.
The president also outlined plans to acquire nuclear-powered submarines and KF-21 fighter aircraft while advancing the development of artificial intelligence-based military technologies, according to reports.
South Korea's economy is estimated to be worth approximately $2.25 trillion in 2026. The Bank of Korea projects economic growth of 3.3% this year, followed by 2.9% in 2027, with semiconductor exports expected to remain a major contributor.
However, lawmakers from the opposition People Power Party challenged the proposed spending, expressing concerns about the potential impact on national debt.
Lee called on parliament to approve the financial plan before the statutory deadline of December 2.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
