President Lee Jae Myung pledged Monday to mobilize full government resources behind three semiconductor and AI megaprojects. He made this commitment while presiding over a national fiscal strategy meeting. Additionally, Lee proposed creating a future response fund using excess tax revenue from the semiconductor boom.
This fund would channel strategic investments toward youth programs, regional development and education. The meeting mapped out budget priorities for the Lee administration’s 2027 fiscal plan. Notably, this represents the first complete budget vision since his government launched.
Lee outlined three guiding principles under the slogan Building an Irreplaceable Korea. He committed to supporting corporate timetables for semiconductor, AI data center and physical AI projects. Furthermore, Lee promised stable supplies of electricity and water alongside expanded transportation infrastructure.
By improving housing, education, healthcare and cultural facilities, the government aims to create new growth hubs nationwide. On June 29, the administration unveiled regional investment plans led by Samsung and SK Group. These megaprojects total roughly 896 trillion won for the Honam region alone.
Additionally, the Chungcheong region will receive about 392 trillion won through Samsung and SK hynix. Meanwhile, the Yeongnam region secured 312 trillion won from several major conglomerates, including Hyundai Motor Group and LG. Together, these regional plans represent one of Korea’s largest coordinated industrial investment efforts.
Planning and Budget Minister Park Hong-keun projected 2027 tax revenue exceeding 500 trillion won. This figure substantially surpasses the government’s original forecast of 412 trillion won. Park also announced a record budget exceeding 800 trillion won alongside major spending restructuring.
Consequently, this restructuring should create additional fiscal space for strategic investments going forward. The meeting brought together Prime Minister Han Sung-sook, cabinet ministers and ruling party leaders. Rep. Han Byung-do pledged legislative support, including passage of the Special Act on Mega Special Zones.
Looking ahead, the Democratic Party plans strong legislative and budgetary backing for these megaprojects. Officials have already established a special committee dedicated to supporting their progress. Ultimately, these investments aim to strengthen Korea’s position in the global race for AI supremacy.
