South Korea is making a bold leap into the future of artificial intelligence, with President Lee Jae Myung announcing a dramatic increase in AI investment aimed at positioning the country among the world’s top three AI powers, alongside the United States and China.
In his annual budget address to parliament on Tuesday, November 4, President Lee unveiled a sweeping 10.1 trillion won ($7 billion) AI investment package — a threefold increase from the previous year — as part of a broader 728 trillion won ($505 billion) national budget for 2026.
“We will significantly expand investment to usher in the ‘AI era’,” Lee declared. “This is a major transformation aimed at propelling South Korea into the ranks of the world’s top three AI powers.”
The ambitious plan allocates 2.6 trillion won to integrate AI into industry, public services, and daily life, while 7.5 trillion won will be used to cultivate AI talent and build critical infrastructure.
With his party holding a parliamentary majority, the budget is expected to pass with minimal resistance.
South Korea’s push for AI dominance builds on its existing strengths in semiconductor manufacturing. Tech giants Samsung Electronics and SK hynix, both global leaders in memory chip production, recently signed preliminary agreements with OpenAI to supply chips and equipment for the company’s Stargate AI infrastructure project.
Industry leaders have expressed strong support for South Korea’s vision. Jensen Huang, CEO of U.S. chipmaker Nvidia, announced plans to deliver 260,000 of Nvidia’s most advanced AI chips to South Korea, calling the country’s goal “ambitious” but well within reach.
“There’s no reason why Korea cannot achieve it,” Huang said. “You have the technology, you have the software expertise, and you also have a natural ability to build manufacturing plants.”
The AI initiative is part of a broader strategy by President Lee’s administration to cement South Korea’s status as a global innovation hub and ensure its competitiveness in the rapidly evolving tech landscape.
