The South Korean government presented its draft national budget for 2026 on August 29, 2025, cementing its previously announced strategy to make AI the engine of the economy. As reported by Reuters and The Korea Herald, total budget expenditures will increase by 8.1% to 728 trillion won ($546 billion), the fastest growth in four years. Spending on research and development (R&D) will increase by 19.3% to a historic high of 35.3 trillion won ($25.4 billion). Within this R&D budget, funding specifically for AI projects will be more than doubled to 2.3 trillion won. These funds will be used to create a national cloud infrastructure with GPU access, support domestic AI chip developers, and integrate AI into key sectors, including healthcare and defense. This budget plan serves as financial confirmation of the countrys ambitions and demonstrates the governments readiness to use fiscal stimulus to achieve technological leadership.
South Korea Proposes Record 2026 Budget to Fuel AI-Driven Growth
