South Korea Plans Record 2027 Budget as AI Tax Revenue Rises
Rapid growth in artificial intelligence and semiconductor chips has become a key driver of economic and industrial transformation among global technology powers. Seeking to capitalize on this critical window, South Korea is channeling increased tax revenue into technology infrastructure. Through state-level investment, the government aims to preserve the country’s global leadership in chip manufacturing, high-speed computing infrastructure and cutting-edge AI technology while strengthening its long-term national competitiveness.
President Lee Jae-myung announced at a national fiscal strategy meeting on July 13, 2026, that the government plans to raise its total fiscal 2027 budget above 800 trillion won, equivalent to more than NT$17 trillion, as tax revenue from the AI industry grows. The record budget will prioritize three megaprojects covering semiconductors, AI data centers and physical AI. The government will also establish a future response fund to begin strategic technology investments in 2027.
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The history behind this eventSouth Korea Unveils $518 Billion AI Chip Investment Plan
South Korea is a global memory-chip powerhouse, with Samsung Electronics and SK hynix leading supplies of DRAM and high-bandwidth memory. Surging demand from AI data centers has made advanced memory central to national competitiveness. The investment is equivalent to about 17% of the global cryptocurrency market’s total value, underscoring the vast amount of capital flowing into AI infrastructure.
On June 29, 2026, the South Korean government unveiled a national semiconductor ecosystem plan under which Samsung Electronics and SK hynix will invest a combined 800 trillion won, or about $518 billion. The companies will build four fabrication plants in the country’s southwest and double DRAM output within five years. The Chungcheong region will focus on packaging, while other regions will expand capacity for components, materials and data centers.
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