South Korea’s 2026 national budget proposal emphasizes AI investment

Summary:

Le mardi, le président Lee Jae Myung de Corée du Sud a présenté la proposition de budget national 2026, mettant en avant un plan de dépenses record de 728 trillions de wons (525 milliards de dollars) avec des priorités significatives pour l’intelligence artificielle. L’objectif est d’accélérer l’avancement de la Corée du Sud en tant que leader mondial en IA tout en favorisant la croissance économique et la compétitivité technologique. Parmi les points clés, on note l’allocation de 10,1 trillions de wons pour les initiatives en IA, triplant le budget de l’année précédente pour l’IA, l’expansion de la formation de la main-d’œuvre, des infrastructures et de la recherche dans les industries avancées, l’augmentation du budget de la défense avec une modernisation militaire orientée IA, et le lancement d’un Fonds de Croissance Nationale de 150 trillions de wons pour les secteurs de haute technologie. La proposition souligne également un soutien ciblé pour les populations vulnérables face au changement technologique et appelle à une coopération législative bipartisane.

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President Lee Jae Myung’s unprecedented proposal for Korea’s 2024 budget highlights strategic priorities aimed at fostering technological advancement, particularly in artificial intelligence (AI), alongside defense modernization and broad economic growth. The administration’s projected government spending totals a record 728 trillion won ($525 billion), marking an 8.1 percent increase from the previous year, and represents a significant commitment to adapting Korea’s economy to the challenges posed by rapid globalization and digital transformation.

At the legislative heart of this proposal lies the prioritization of AI. The Lee administration has allocated 10.1 trillion won—over three times this year’s AI-related budget—to accelerate Korea’s objective of becoming one of the top three global leaders in this crucial field. This investment covers both immediate and long-term initiatives: 2.6 trillion won dedicated to embedding AI technologies into various domains such as industry, public services, and everyday life, while a substantial 7.5 trillion won focuses on workforce training and infrastructure development. These measures are set against the backdrop of Korea’s position as a global technology hub, and the proposal signals its agenda to further solidify this standing.

From a legal perspective, the proposed budget aligns with Korea’s Framework Act on Intelligent Informatization, a legislative landmark that aims at fostering innovation through promoting intelligent technologies. This legislative foundation encourages transparency, sustainable investment, and equitable access to technological advancements, further underpinning President Lee’s approach to national development. However, implementing the budget will require the active cooperation of the National Assembly, as the legal deadline for approval draws near.

Ethically, the administration has sought to counter balance economic progress with protections for the vulnerable. President Lee emphasized the government’s responsibility to mitigate disruptive effects of technological change by introducing targeted, age-specific programs addressing demographic shifts. Investing in human capital through education and re-skilling initiatives directly tackles ethical concerns of inequality that might arise from accelerated AI adoption.

The ambitious budget proposal may herald substantial industry shifts, particularly with 6 trillion won projected to propel AI-driven transformations in sectors such as robotics, automotive production, shipbuilding, semiconductors, and manufacturing. Companies operating within these industries stand to benefit, but will also face pressures to innovate and adopt AI for competitive advantage. For example, Samsung—a global leader in electronics—could spearhead efforts to integrate AI in product development and logistics, while Hyundai may enhance its autonomous vehicle initiatives. The ripple effects of such prioritization are expected to elevate Korea’s position in global export markets.

Moreover, Lee’s unveiling of a plan to modernize Korea’s defense infrastructure with an 8.2 percent increase in military spending reflects a broader focus on embedding AI into national security—a field rapidly growing in importance. He outlined an ambitious agenda to transform the military into a “smart elite force,” supporting its trajectory toward membership among the world’s top four defense exporters. This promise was backed by a 19.3 percent expansion in research and development funding for advanced technologies, including defense-related AI solutions.

However, the political climate surrounding the budget’s passage poses challenges. The main opposition party, the People Power Party (PPP), boycotted Lee’s budget address, staging their protest against what they perceive as judicial overreach from the Lee administration. The PPP’s accusations of undermining democratic institutions and advancing a “one-party dictatorship” underscore the polarized atmosphere within the Assembly, raising questions about the smooth approval of the proposed budget.

In conclusion, President Lee Jae Myung’s administration is charting a course that intertwines substantial fiscal investment with strategic resource allocation to empower Korea’s industries and secure its global standing. Despite the admirable vision, navigating the legal, ethical, and political landscape will be crucial to realizing these objectives in the rapidly evolving AI era.

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