Gov't bets big on AI, chips to break low-growth cycle, compete in global tech race

The government plans to significantly ramp up investment in artificial intelligence (AI) and semiconductors to prevent structurally low growth from becoming entrenched and strengthen Korea’s position in the global race for technological dominance through its record 2027 budget of nearly 821 trillion won ($599 billion), the Ministry of Planning and Budget said Tuesday. It has designated semiconductors, physical AI and AI data centers as the three main pillars of its megaprojects to provide comprehensive support ranging from key infrastructure to technology development. President Lee Jae Myung said during a Cabinet meeting that the world is undergoing a major shift in the global industrial order as the AI revolution, energy transition and restructuring of global supply chains converge to reshape the global economy and industries. "Against the backdrop of these sweeping changes, next year’s budget should serve as a solid foundation for Korea to emerge as a global leader in cutting-edge technologies," Lee said. Lee also said Korea is at a critical juncture, facing a choice between prolon