South Korea Seeks to Nearly Double AI Spending in Proposed Budget

President Lee Jae Myung told the National Assembly on Nov. 2, 2026 that South Korea will invest 21.3 trillion won in AI, semiconductors, physical AI and AI data centres, nearly twice this year's funding. People Power Party lawmakers picketed as he arrived in Yeouido, Seoul. Ruling lawmakers clapped during the speech; opposition members stayed silent or shouted "Lies" and "Resume trial." Lee greeted Democratic Party members on entry. Afterward, People Power Party lawmaker Cho Kyung-tae shook his hand. Lee cast the plan's 12.8 percent rise as the largest annual spending growth on record and urged a shift from growth for the few to growth for all. He said the bill would make South Korea a leader while turning national growth into growth for the people. Further lines set 4.6 trillion won for a sovereign AI model, 13.8 trillion won for 10 strategic technology sectors, and R&D raised by 4 trillion won to a record 39.5 trillion won. Differing reports put a Future Response Fund at 160 trillion or 162.3 trillion won. January-to-October exports hit US$930 billion, on track past US$1 trillion. An 800 trillion won private chip buildout led by Samsung and SK Hynix is planned in southwest Korea. The bill, submitted in September, still needs Assembly approval.