(3rd LD) Lee vows bold investment in AI, future growth engines for 'growth for all' - Yonhap News Agency
SEOUL, Nov. 2 (Yonhap) -- President Lee Jae Myung on Monday pledged bold investment in artificial intelligence (AI) and other future growth engine industries to boost South Korea's economic growth potential and ensure what he called "growth for all."
Lee made the pledge in a speech at the National Assembly, where he called for bipartisan support for the passage of the 2027 budget bill.
"The 2027 budget bill is one that will make South Korea a leader and secure its dominance in the future while turning national growth into growth for the people," the president said.
"It will lay the foundation for a great leap forward and allow all people to share in the opportunities and fruits of growth by intensively investing in future growth engines and narrowing gaps," he added, calling for a transition to "growth for all."
The government submitted the budget bill to the National Assembly in September, proposing 820.9 trillion won (US$614.5 billion) in total government spending next year, up more than 10 percent from this year, amid expectations of increased tax revenue stemming from the semiconductor boom.
"In order to boost the growth potential, which is the basic physical strength of our economy, (the government) will boldly invest in AI and future growth engines," Lee said.
President Lee Jae Myung delivers a speech at the National Assembly in Seoul on Nov. 2, 2026. (Yonhap)
President Lee Jae Myung delivers a speech at the National Assembly in Seoul on Nov. 2, 2026. (Yonhap)
Under the largest-ever budget bill, the government plans to establish the 160 trillion-won Future Fund aimed at supporting younger generations, promoting economic growth engines and boosting regional development, with 45.4 trillion won of the fund to be allocated for the first time next year.
The president called the fund a strategic investment platform that will buttress a rebound in the country's growth potential and help reduce deep social gaps.
"The total 2027 expenditures of 820.9 trillion won mark the biggest-ever fiscal investment, representing a 12.8 percent increase, the biggest (annual) growth on record," he said, adding the expanded spending reflects higher living standards South Koreans deserve and the need to strengthen the country's future capabilities.
The sharp increase in the 2027 budget was made possible by expectations of higher tax revenue amid record high profits at semiconductor giants, including Samsung Electronics Co. and SK hynix Inc., fueled by the AI boom that boosted chip demand.
The government, in particular, will inject 21.3 trillion won into building a semiconductor manufacturing hub and data centers, developing physical AI and promoting AI under its "three megaprojects," the president noted.
With a separate allocation of 4.6 trillion won, the government will seek to acquire a sovereign AI model with the world's highest performance, while 13.8 trillion won will be spent to secure absolute competitiveness in 10 strategic technology sectors that will spearhead future economic growth, according to Lee.
President Lee Jae Myung (at podium) delivers a speech at the National Assembly in Seoul on Nov. 2, 2026. (Yonhap)
The president noted persistent economic inequality and polarization in South Korea, pledging to lay the "social security mat" through "three livelihood projects" aimed at providing employment, financial and housing support for the underprivileged.
Lee highlighted an 8.2 percent increase in next year's defense budget to 73.3 trillion won, saying that the government plans to acquire military assets needed for Seoul to retake wartime operational control (OPCON) of its troops from Washington, such as nuclear submarines and KF-21 fighter jets.
"Countless tasks and challenges," as well as a fast-changing global security environment, make it necessary for rival parties to join hands to build the country's future and improve people's lives, the president said, asking lawmakers to help pass the budget bill by Dec. 2, the statutory deadline for the 2027 budget.
Lee's parliamentary speech was met by protests from members of the main opposition People Power Party, who accused the government of increasing the national debt.
Lawmakers of the main opposition People Power Party stage a protest campaign at the National Assembly on Nov. 2, 2026, while President Lee Jae Myung addresses the assembly. (Pool photo) (Yonhap) (Hold)
President Lee Jae Myung (C) speaks to parliamentary speaker Cho Jeong-sik after arriving at the National Assembly in Seoul for a budget speech on Nov. 2, 2026. (Pool photo) (Yonhap)
