South Korea targets 'world's highest performance' sovereign AI model in record new budget

South Korean President Lee Jae Myung unveiled the country's largest ever budget on Monday, pledging to "boldly invest in AI and future growth engines." Speaking to the National Assembly on Monday, Lee said total spending for 2027 would rise 12.8% to 820.9 trillion won ($610.14 billion), including 21.3 trillion won for semiconductors, physical AI and AI data centers — nearly double the 2026 level. A separate 4.7 trillion won will go toward developing a sovereign AI model with what Lee described as the "world's highest performance.