South Korea’s President Lee Jae Myung has announced plans to triple the country’s investment in artificial intelligence (AI) as part of a bold national strategy to position the nation among the world’s top three AI powers, alongside the United States and China.

 

In his annual parliamentary budget speech on Tuesday, November 4, President Lee unveiled a 10.1 trillion won ($7 billion) investment package aimed at transforming the country’s technological infrastructure and accelerating the integration of AI across industries, public services, and daily life.

 

“We will significantly expand investment to usher in the ‘AI era’,” Lee declared, describing the initiative as “a major transformation aimed at propelling South Korea into the ranks of the world’s top three AI powers.”

 

The proposed budget marks a threefold increase from the current year’s AI allocation, reflecting the administration’s determination to accelerate technological advancement and innovation. The AI initiative forms part of a broader 728 trillion won ($505 billion) national budget for 2026 — representing an 8.1 percent increase from the current fiscal year.

 

 

 

Under the proposal, 2.6 trillion won will be directed towards integrating AI into industry, daily life, and the public sector, while 7.5 trillion won will focus on developing AI talent and building supporting infrastructure.

 

 

 

President Lee’s party holds a parliamentary majority, increasing the likelihood of the budget’s approval.

 

 

 

South Korea’s drive toward AI dominance builds on its existing technological strengths, as it is home to two of the world’s leading memory chip manufacturers, Samsung Electronics and SK hynix, both of which supply essential chips for AI systems and large-scale data centres.

 

 

 

Both companies recently signed preliminary agreements with OpenAI, the creator of ChatGPT, to supply chips and equipment for the company’s Stargate AI infrastructure project.

 

 

 

Global tech industry figures have also expressed optimism about South Korea’s potential to achieve its AI ambitions. Jensen Huang, CEO of U.S. chip giant Nvidia, recently announced plans to deliver 260,000 of Nvidia’s most advanced AI chips to South Korea, describing the country’s goal as “ambitious” but achievable.

 

 

 

“There’s no reason why Korea cannot achieve it you have the technology, you have the software expertise, and you also have a natural ability to build manufacturing plants,” Huang said.

 

 

 

The AI investment push is part of a broader effort by President Lee’s administration to solidify South Korea’s position as a global innovation hub and ensure the country remains competitive in the rapidly evolving technological landscape.