South Korea said on Monday it would draw up record budget spending of more than $530 billion for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry.

Investing in the Future

Budget Minister Park Hong-keun, speaking at a national fiscal strategy meeting, said the spending plan would be financed through higher tax receipts and expenditure cuts. The proposed budget compares with this year’s spending plan, excluding supplementary budgets.

The government said three “mega-projects” — investments in chips, AI data centres and physical AI — would receive top fiscal priority, adding that it would secure funding capacity through a major restructuring of existing spending programmes, rather than relying solely on increased tax revenue.

President Lee Jae Myung said the government would use all available means to ensure that corporate investments proceed on schedule. “Additional tax revenue coming at this time is a precious resource to be used at a golden time when global AI dominance will be determined,” Lee said.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.