Business

South Korea doubles AI budget to accelerate nation’s push toward global leadership

Monday, 24 November 2025 6:39AM UTC

The South Korean government has announced a record 10.1 trillion won allocation for AI in 2026, aiming to establish the country as a top three global AI powerhouse through extensive funding, infrastructure, and industrial integration.

South Korea has significantly expanded its commitment to artificial intelligence (AI), with the government allocating a record 10.1 trillion won (approximately $7.26 billion) for AI in its 2026 budget. This amount more than triples the previous year’s allocation, which stood at 3.3 trillion won, underlining the Lee Jae Myung administration’s strong dedication to advancing AI as a core engine of economic growth and innovation.

Prime Minister Kim Min-seok emphasised the transformative potential of AI during a high-level meeting of science-related ministers, where he articulated AI as a "new growth engine" poised to drive a grand national transformation. Bringing together ministers from diverse portfolios such as science, education, defence, interior, and health, the gathering marked the first such forum under the current government, continuing a tradition initiated during the Moon Jae-in administration. Kim called on all ministries to collaborate closely to harness AI’s potential across sectors, ensuring the benefits of innovation are distributed broadly under the vision of "AI for all."

The 10.1 trillion won budget includes substantial funding for wide-ranging AI initiatives. Notably, the budget supports the Artificial Intelligence Transformation (AX) project, with a 2.6 trillion won allocation aimed at integrating AI across industry sectors, everyday life, and public services. This reflects a comprehensive approach to embedding AI technology not just in traditional technology fields but across the broader economy. Additionally, expansion of AI education features prominently, with increased support for AI graduate schools designed to cultivate the next generation of AI talent.

The government is also investing heavily in computing infrastructure, including the planned purchase of 15,000 high-performance graphics processing units (GPUs). This procurement effort aligns with an ongoing drive to establish a robust national AI computing centre, which is critical for handling the vast computational demands of advanced AI research and development. Public-private partnerships are expected to facilitate the acquisition and deployment of these GPUs, reinforcing South Korea’s competitive edge in the global AI landscape.

Moreover, AI applications are being targeted at key industries such as robotics, automotive manufacturing, shipbuilding, and pharmaceuticals. The Ministry of Trade, Industry, and Energy recently allocated 137.8 billion won, within a supplementary budget, to support AI-driven industrial adoption and renewable energy initiatives, highlighting the government's push to marry AI with sustainable growth sectors.

This ambitious push into AI is part of a broader strategic effort to position South Korea among the top three global AI powerhouses. To complement the AI budget, the government has expanded its National Growth Fund to 150 trillion won (around $108 billion), an increase from an earlier pledge of 100 trillion won. This fund targets strategic industries including semiconductors, biotechnology, and AI, aiming to stimulate innovation, industrial restructuring, and venture company development.

The AI investment also appears to be having a positive impact on market sentiment, with South Korean stocks, especially in semiconductor and banking sectors, showing gains amid renewed optimism about potential US interest rate cuts. Major players like Samsung Electronics and SK Hynix led these gains, reinforcing the interconnectedness of AI advancements, semiconductor strength, and broader economic confidence.

In summary, South Korea’s substantial budget boost and strategic planning in AI reflect a national ambition to leverage AI as a central pillar for future economic growth, technological leadership, and societal advancement. The multi-ministerial cooperation, extensive funding for education and infrastructure, and targeted industrial applications illustrate a cohesive approach designed to ensure that the benefits of AI permeate across the economy and society.

📌 Reference Map:

^[1] (Free Press Journal) - Paragraphs 1, 2, 6, 7
^[2] (Korea JoongAng Daily) - Paragraphs 1, 4, 5
^[3] (The Korea Times) - Paragraphs 1, 4
^[4] (The Korea Times) - Paragraph 5
^[5] (Asiae) - Paragraph 4
^[6] (The Korea Times) - Paragraph 6
^[7] (Reuters) - Paragraph 4

Source: Noah Wire Services

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https://www.freepressjournal.in/tech/south-korea-allocates-10-trillion-won-to-ai-as-pm-kim-min-seok-urges-ministries-to-unite-for-national-innovation - Please view link - unable to able to access data
https://koreajoongangdaily.joins.com/news/2025-08-29/national/politics/Korean-government-allocates-101-trillion-won-for-artificial-intelligence-in-budget/2387310 - South Korea's government has allocated 10.1 trillion won (approximately $7.26 billion) for artificial intelligence (AI) in its 2026 budget, marking a significant increase from the previous year's 3.3 trillion won. This investment aims to bolster the nation's AI capabilities and includes plans to purchase 15,000 high-performance GPUs to enhance computing infrastructure. The budget also focuses on expanding AI graduate schools and supporting the integration of AI into various industries, including robotics, automotive, and shipbuilding, to drive economic growth and innovation.
https://www.koreatimes.co.kr/amp/economy/20250829/korea-to-more-than-triple-ai-budget-to-727-bil-in-2026 - South Korea plans to more than triple its AI budget to 10.1 trillion won ($7.27 billion) in 2026, up from 3.3 trillion won in 2025. This initiative is part of a broader strategy to position the country among the top three global AI powerhouses. The budget includes investments in AI integration across key industries such as robotics, automobiles, shipbuilding, and manufacturing, as well as in AI education and infrastructure development to support the nation's AI transformation.
https://www.koreatimes.co.kr/business/20250619/industry-ministry-allocates-100-mil-to-boost-ai-renewable-energy - South Korea's Ministry of Trade, Industry and Energy has allocated 495.6 billion won ($361.36 million) in a supplementary budget, with 137.8 billion won earmarked for supporting the artificial intelligence (AI) and renewable energy industries. The funding aims to foster industrial AI adoption, develop AI-based pharmaceutical manufacturing systems, and expand solar power installations in residential and commercial buildings, reflecting the government's commitment to advancing these sectors.
https://cm.asiae.co.kr/en/article/2025082905465746203 - The South Korean government has allocated a record 23.7 trillion won for the Ministry of Science and ICT in the 2026 budget, with 10.1 trillion won dedicated to artificial intelligence (AI). This includes 2.6 trillion won for the Artificial Intelligence Transformation (AX) project, which aims to integrate AI across all sectors of industry, daily life, and public services. The budget also supports the development of AI graduate schools and the commercialization of AI technologies in various industries.
https://www.koreatimes.co.kr/southkorea/politics/20250910/govt-expands-national-growth-fund-to-120-bil-to-boost-ai-strategic-industries - The South Korean government has expanded its National Growth Fund to 150 trillion won, up from the previously pledged 100 trillion won, to support strategic industries including artificial intelligence (AI), semiconductors, and biotechnology. This initiative aims to revitalize the economy through industrial restructuring and long-term investments in key sectors, with a focus on fostering innovation and supporting venture companies in the AI industry.
https://www.reuters.com/technology/artificial-intelligence/south-korea-aims-secure-10000-gpus-national-ai-computing-centre-2025-02-17/ - South Korea plans to secure 10,000 high-performance graphics processing units (GPUs) within the year to enhance its national AI computing centre. The government aims to acquire these GPUs through public-private cooperation to support the development of AI services and infrastructure, reflecting the country's commitment to advancing its AI capabilities in the global race for AI dominance.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative is recent, published on November 24, 2025. Similar reports from August 2025 indicate that the South Korean government had already allocated 10.1 trillion won for AI in the 2026 budget. ([koreatimes.co.kr](https://www.koreatimes.co.kr/economy/20250829/korea-to-more-than-triple-ai-budget-to-727-bil-in-2026?utm_source=openai)) The earlier reports do not mention Prime Minister Kim Min-Seok's recent statements, suggesting that this specific angle is new. However, the core information about the AI budget allocation has been previously reported. The report appears to be based on a press release, which typically warrants a high freshness score. No significant discrepancies in figures or quotes were found. The narrative does not appear to be recycled content. No evidence of republishing across low-quality sites or clickbait networks was found. The update may justify a higher freshness score but should still be flagged.

Quotes check

Score: 9

Notes: The direct quote from Prime Minister Kim Min-Seok, "Artificial intelligence is a new growth engine to boost our economy's innovation and a powerful driver of grand national transformation," is unique to this report. No identical quotes were found in earlier material, indicating potentially original or exclusive content. No variations in quote wording were noted.

Source reliability

Score: 6

Notes: The narrative originates from the Free Press Journal, which is not widely recognised as a major news outlet. This raises questions about the reliability of the source. The report cites Yonhap News Agency, a reputable source, for the information about Prime Minister Kim Min-Seok's statements. However, the Free Press Journal's own credibility is uncertain. The report does not mention any unverifiable entities.

Plausability check

Score: 7

Notes: The claim that South Korea has allocated 10 trillion won for AI in the 2026 budget aligns with previous reports from August 2025. The specific statements attributed to Prime Minister Kim Min-Seok are not found elsewhere, which could indicate original reporting. The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with official government communications. The structure is focused and relevant to the claim, with no excessive or off-topic detail. The tone is formal and appropriate for the subject matter.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent information about South Korea's AI budget allocation, including unique statements from Prime Minister Kim Min-Seok. While the core information aligns with earlier reports, the specific quotes are new. The source's reliability is uncertain, and the lack of supporting details from other reputable outlets raises concerns. Further verification from more established news sources is recommended.

South Korea
Artificial Intelligence
Government investment