South Korea to Invest Nearly $7 Billion in Artificial Intelligence by 2027
Seoul, South Korea – President Yoon Suk Yeol announced on Tuesday that South Korea will invest close to $7 billion in artificial intelligence by 2027 to position itself as a global leader in cutting-edge semiconductors.
This investment comes as the country is home to Samsung and SK Hynix, the two largest manufacturers of memory chips in the world, including the premium high-bandwidth memory (HBM) used in AI hardware.
The semiconductor industry is a vital part of South Korea’s export-driven economy, and President Yoon emphasized his administration’s goal for the country to lead the world in AI chips.
“We will invest 9.4 trillion won ($6.94 billion) in the AI and AI semiconductor fields by 2027,” President Yoon stated, adding that a separate 1.4 trillion won ($1 billion) fund will be established to support the growth of innovative AI semiconductor companies.
Representatives from Samsung, SK Hynix, Naver, and AI chip startup SAPEON attended the high-powered meeting led by President Yoon.
The global demand for advanced chips powering AI systems has surged, driven by the success of products like ChatGPT and other generative AI technologies.
South Korea is not alone in its efforts to strengthen its semiconductor industry. Geopolitical concerns involving Taiwan and the broader US-China rivalry have motivated countries like Japan and major European nations to ramp up domestic chip production through substantial investments and subsidies.
President Yoon stressed at the meeting that South Korea aims to become a world leader in AI technology and expand beyond memory chips to dominate the future AI chip market, characterizing the current semiconductor competition as an “industrial war.”
The announcement by President Yoon follows recent moves by other countries, such as the US unveiling up to $6.6 billion in subsidies to Taiwanese giant TSMC and Japan announcing up to $3.9 billion in support for a chip venture.
Semiconductors remain South Korea’s top export, with semiconductor exports in March reaching $11.7 billion, the highest level in nearly two years and accounting for a fifth of the country’s total exports.
