Seoul (AFP) – South Korea will double spending on AI and semiconductors in 2027 to a record high, the president said Monday, pledging to use the technology to turn the military into a “smart, elite force”.

President Lee Jae Myung in his annual budget speech to parliament said 21.3 trillion won ($16 billion) would be allocated to chipmaking and artificial intelligence, spanning data centres to robotics.

“We will make bold investments in AI and future growth engines to boost our economy’s growth potential,” he said, adding that the figure was “nearly double this year’s amount”.

On the defence budget, the government wants to see an increase of around eight percent from this year to 73.3 trillion won, aiming to secure nuclear-powered submarines and KF-21 fighter jets.

Lee said Seoul aims to “rapidly transform our military into a smart, elite force by establishing integrated manned and unmanned systems based on AI, robots and drones”.

North Korea has recently tested a slew of weapons, including a new precision-guided torpedo system and an intermediate-range hypersonic missile, both of which it said used AI technology.

And last year, Seoul announced an agreement with Washington to build nuclear-powered submarines, with Pyongyang slamming the submarine programme as a “dangerous attempt at confrontation”.

Overall, the 2027 budget plan totals 821 trillion won, a 12.8 percent increase on-year, making it the largest budget proposal on record.

Lee now needs parliament to pass the budget proposal, which is likely given his party’s majority.

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