South Korea’s 21.3 Trillion Won Tech Package Faces Budget Review

South Korea’s proposed 2027 technology budget faces fresh scrutiny after the National Assembly Budget Office called for stronger planning and oversight of 8.9 trillion won in megaproject and infrastructure spending.

The 8.9 trillion won covers the three megaprojects and related power, water and industrial-site infrastructure. In an Oct. 30 analysis, the office called for statutory basic plans, a clearer policy coordination structure, updated infrastructure plans and laws, and monitoring of the financial soundness of institutions carrying out the projects.

The review concerns part of a larger proposed 21.3 trillion won “Three Megaprojects + AI” category. The total is up 97.2% from 10.8 trillion won in 2026. Listed priorities include semiconductors, physical AI, AI data centers, electricity, water, industrial sites, frontier AI models and public AI services.

The 21.3 trillion won total covers industrial projects alongside wider AI initiatives. The Ministry of Science and ICT separately proposed 9.4 trillion won for AI in 2027, up 84.3% from 5.1 trillion won in 2026. That amount represents 57% of the government’s total AI budget.

The package is part of a proposed 820.9 trillion won national budget, 12.8% above 2026. The Cabinet approved the proposal Sept. 1 and submitted it to the National Assembly Sept. 3. The allocations remain subject to legislative review.