South Korea will draw up a record 2027 budget of more than 800 trillion won (US$530.97 billion), above this year’s 727.9 trillion won (US$480 billion) spending plan. The government said chips, AI data centers, and physical AI would get top priority.

Budget Minister Park Hong-keun said the plan would be financed through higher tax receipts and spending cuts, including a restructuring of about 50 trillion won (US$33 billion) in expenditure, roughly double the previous year’s level.

The government also said it plans to launch a Future Response Fund focused on youth, growth engines, regions, and talent.

The plan comes as South Korea expects a semiconductor-led tax windfall. National tax revenue is projected to reach at least 415 trillion won (US$274 billion) this year.

The AI data center push also faces infrastructure hurdles. A new law due to take effect in March aims to streamline permits and ease power-related rules for regional projects.

🔗 Source: Reuters