President Lee Jae Myung unveiled Korea’s largest-ever budget on Tuesday, emphasizing AI-driven growth as a national priority. The 2026 plan totals 728 trillion won ($525 billion), up 8.1 percent from this year. Moreover, Lee said the record spending aims to help Korea adapt to global technological and trade shifts.
Speaking at the National Assembly, Lee announced that 10.1 trillion won will be directed toward artificial intelligence development. The goal is to make Korea one of the world’s top three AI powers. This year’s AI budget was 3.3 trillion won, meaning next year’s allocation will more than triple.
Furthermore, the president explained that 2.6 trillion won will fund AI integration in industries, daily life, and public services. Another 7.5 trillion won will support workforce training and infrastructure to strengthen Korea’s innovation base.
In addition, the government will also invest 6 trillion won over five years to modernize key industries. These include robotics, automotive manufacturing, shipbuilding, semiconductors, and home appliances. Officials expect these investments to boost productivity and sustain AI-driven growth across the economy.
Research and development spending will also rise 19.3 percent to 35.3 trillion won. Funding will focus on AI, advanced manufacturing, defense technology, and content creation. Lee also revealed a plan to establish a 150 trillion won National Growth Fund over the next five years. The fund aims to nurture high-tech sectors and ensure balanced economic progress.
Meanwhile, defense spending will increase 8.2 percent to 66.3 trillion won. Lee said the government will modernize the military with AI-based systems to build a “smart elite force.” He expects Korea to become one of the world’s top four defense exporters through expanded research and startup support.
Additionally, Lee also stressed the need to protect vulnerable citizens from rapid technological change. He pledged new social programs tailored to different age groups to maintain social stability.
The president therefore called for bipartisan support to pass the budget on time. “Together with the people, we will open the door to the AI era,” he said.
Meanwhile, the opposition People Power Party (PPP) boycotted the speech and held a protest at the National Assembly. The PPP criticized the government after a special prosecutor requested an arrest warrant for former floor leader Choo Kyung-ho.
Despite rising political tensions, Lee urged unity for national progress. He emphasized that Korea’s future depends on responsible leadership, fiscal discipline, and shared commitment to AI-driven growth.
