The South Korean government plans to invest 21.3 trillion won in three major projects focused on artificial intelligence (AI) and semiconductors. This includes the purchase of 10,000 high-performance graphics processing units (GPUs) to support the development of independent AI models and the distribution of over 2,000 domestically produced AI robots in defense, police, firefighting, caregiving, and agriculture sectors.
On September 1, during a Cabinet meeting chaired by President Lee Jae-myung at the Blue House, the government approved the 2027 budget proposal. The budget for the three major projects and AI-related initiatives will increase by 97.2% from this year's 10.8 trillion won to 21.3 trillion won next year.
Specifically, the budget allocates 12.2 trillion won for building frontier-level AI models, 3.4 trillion won for semiconductors, 3.1 trillion won for physical AI, 500 billion won for establishing a domestic AI data center ecosystem, and 2.1 trillion won for infrastructure including power, water, and industrial land.
A new allocation of 4.7 trillion won will be dedicated to developing frontier-level AI models. This includes 3.9 trillion won for purchasing 10,000 units of NVIDIA's top-performing GPU, the 'Vera Rubin,' and 800 billion won for acquiring AI training data. The government will also support the recruitment of 20 top global researchers with 25 billion won.
The government plans to select key companies through a public competition and evaluation process, focusing on providing GPUs, data, and talent. The initiative will be structured to ensure that the benefits and results of AI model development return to the public. Until the Vera Rubin GPUs are secured, the government will initially deploy 7,000 GPUs from its own inventory. Additionally, it will support the leasing of 8,000 GPUs from private sector research and industry.
For the 'Everyone's AI' initiative, which will be available for free to the public, 250 billion won will be allocated. This project aims to develop and provide a public AI agent that assists citizens in applying for essential public services such as resident registration, KTX ticket reservations, and passport renewals. A private AI agent will also be offered to help users search and book transportation and accommodation based on their travel plans.
The budget for physical AI will increase more than threefold from 900 billion won this year to 3.1 trillion won next year. The government will invest 500 billion won in field demonstrations across eight sectors, including manufacturing, construction, defense, police, firefighting, caregiving, and agriculture, to create initial demand for domestic AI robots.
Over 2,000 domestic AI robots will be introduced, with 650 units for research and education, 214 for defense, 369 for police and firefighting, 200 for caregiving, and 210 for agriculture and food sectors. In manufacturing, humanoid robots and robot-based automation systems will be distributed, focusing on supply chain partners and small manufacturers.
The semiconductor budget will also expand from 1.3 trillion won to 3.4 trillion won. The government will establish a new 'Special Account for Strengthening Semiconductor Industry Competitiveness' with 2.6 trillion won to secure stable investment resources. To maintain a competitive ecosystem, the government will promote the development of domestic neural processing units (NPUs) and optimize AI models and services, as well as establish R&D collaborative fabs for producing prototype compound semiconductors.
For the three major projects, 2.1 trillion won will be allocated to expand necessary infrastructure such as power, water, and industrial land. This includes 1.5 trillion won for power infrastructure, 400 billion won for water supply in industrial complexes in the southwestern and Chungcheong regions, and 200 billion won for advanced industrial infrastructure in the Saemangeum area.
* This article has been translated by AI.
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