S.Korea Flags Record 2027 Budget of over $530 Billion as AI Chip Boom Lifts Revenues
The plan would fund chips, AI data centres and physical AI, with officials also seeking to reshape 50 trillion won in spending.
- On Monday, South Korea announced a record budget of more than 800 trillion won for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry and exceeding initial Cabinet projections from March.
- Combined operating profits at Samsung Electronics and SK Hynix are projected to exceed 600 trillion won this year, up from roughly 90 trillion won a year earlier, with semiconductors now accounting for a rising share of national exports.
- Budget Minister Park Hong-keun designated chips, AI data centres and physical AI as three mega-projects receiving top fiscal priority, targeting about 50 trillion won in restructured spending—double the prior year—by cutting underperforming programmes.
- South Korea will establish a Future Response Fund as a strategic investment platform, with President Lee Jae Myung emphasizing that additional tax revenue represents 'a precious resource' for competing in global AI dominance and committing to ensure corporate investments proceed on schedule.
- Implementation hinges on undefined details about the Future Response Fund's size and methodology, while the chip boom already strains Korea's economy—pressuring bond markets and triggering inflation warnings from economists—even as Seoul commits $880 billion to AI infrastructure over the next decade.
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South Korea flags a record $530bn budget, paid for by the AI chip boom
South Korea will draw up record budget spending of more than 800 trillion won ($530.97bn) for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry, the government said on Monday. It is the clearest sign yet that Seoul intends to spend the semiconductor windfall rather than save it, an argument the […] This story continues at The Next Web
South Korea flags record 2027 budget of over $530 billion as AI chip boom lifts revenues
South Korea plans record budget spending exceeding 800 trillion won for fiscal 2027. This significant spending will be supported by stronger tax revenues from the AI chip industry. The government will prioritize investments in chips, AI data centers, and physical AI technologies. Existing spending programs will undergo major restructuring to secure necessary funding capacity. A new Future Response Fund will strategically invest excess tax revenu…
This revenue could reach at least 500,000 billion won (nearly 291 billion euros) next year, up by more than 20% from the previous estimate.
South Korea flags record 2027 budget of over $685b as AI chip boom ...
SEOUL — South Korea said on Monday (July 13) it would draw up record budget spending of more than 800 trillion won (S$685.7 billion) for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry.Budget Minister Park Hong-keun, speaking at a national fiscal strategy meeting, said the spending plan would be financed through higher tax receipts and...
S.Korea flags record 2027 budget of over $530 billion as AI chip boom lifts revenues
SEOUL, July 13 (Reuters) - South Korea said on Monday it would draw up record budget spending of more than 800 trillion won ($530.97 billion) for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry. Budget Minister Park ...
(Seoul = Yonhap News) Reporters Lim Hyung-seop and Hwang Yun-gi = President Lee Jae-myung said on the 13th, "Thanks to the semiconductor boom triggered by the artificial intelligence (AI) revolution, unprecedented additional tax revenues..."
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