Arya News - The budget ministry sees 500 trillion won-plus tax revenue and an 800 trillion won-plus budget in 2027.
SEOUL – President Lee Jae Myung pledged Monday to mobilize the full resources of the government to ensure investments in three semiconductor and artificial intelligence megaprojects proceed on schedule.
Presiding over a national fiscal strategy meeting, Lee also proposed creating a “future response fund.” This would channel any excess tax revenue generated from the AI-driven semiconductor boom into strategic investments.
Monday’s meeting mapped out the Lee administration’s budget priorities and investment plans. A particular focus was placed on a trio of megaprojects centered on semiconductors, AI data centers and physical AI.
Lee outlined three principles that would underpin the Lee administration’s 2027 budget and fiscal policy, the first to reflect a complete vision of his government since its launch.
Lee committed to “turning the three megaprojects into new opportunities for the Korean economy” during the meeting, under the slogan “Building an Irreplaceable Korea Through Bold Innovation and Investment.”
“We will mobilize the full capabilities of the government and provide concentrated support so that investments in semiconductors, physical AI and AI data centers can proceed properly according to corporate timetables,” Lee said in his opening remarks.
Lee pledged to ensure a stable supply of essential resources such as electricity and water while expanding transportation and logistics infrastructure.
“By improving living conditions through housing, education, healthcare and cultural facilities, while also building the foundations for innovation, we will create new growth hubs across the Republic of Korea,” Lee said, referring to South Korea by its official name.
On June 29, the Lee administration unveiled plans to foster balanced regional growth and drive a major leap forward through massive investments in advanced industries, led primarily by Samsung and SK Group projects across the country.
The plan includes 896 trillion won ($598 billion) in investment for the southwestern Honam region, led by Samsung Electronics, SK hynix and Amkor Technology Korea; about 392 trillion won for projects in the central Chungcheong region, involving Samsung, SK hynix and Celltrion; and 312 trillion won for the southeastern Yeongnam region, with participation from major conglomerates including Hanwha, Hyundai Motor Group, Samsung, SK, Doosan and LG.
Lee further pledged Monday to “use additional tax revenue as a source of strategic investment for preparing for the future.”
“This additional tax revenue is a valuable resource to be deployed during the golden window in which the global race for artificial intelligence supremacy will be decided,” Lee said.
Lee underscored that the government would establish a new “future response fund,” financed by “unprecedented additional tax revenue driven by a semiconductor boom sparked by the AI revolution,” to make concentrated investments in areas such as youth, regional development and education.
Lee explained that the fund would serve as a strategic investment platform to enable “bold and sustained investment for the future” and lay the foundation for “a great leap forward together with future generations.”
“Through these investments, we will raise the economy’s growth potential and ensure that the benefits are shared with all citizens,” Lee said.
As the final principle, Lee pledged to “build the Republic of Korea where no one is left behind through growth shared by all.”
Lee said the government would provide support for young people entering society, ranging from employment and housing to wealth accumulation, while strengthening protections for nontraditional workers expected to proliferate in the AI era.
“We will strengthen the social safety net to the level of a social safety mat, so that nonstandard workers who will inevitably increase in number can also receive protection without gaps,” Lee said.
In the first session, Planning and Budget Minister Park Hong-keun presented the government’s 2027 budget framework and medium-term fiscal management plan.
Park said tax revenue in 2027 is expected to exceed 500 trillion won, far surpassing the government’s original forecast of 412 trillion won. Park also unveiled plans for a record budget exceeding 800 trillion won next year, along with an unprecedented 50 trillion won in spending restructuring to create additional fiscal space for strategic investments.
The second session focused on supporting the government’s three megaprojects, including infrastructure expansion for power, water and advanced industrial complexes.
The third session centered on inclusive growth, covering youth policies, stronger social safety nets for workers and the government’s “AI for All” initiative, which aims to build a nationwide AI platform accessible to all citizens.
The meeting brought together Prime Minister Han Sung-sook, Cabinet ministers and the heads of all government ministries and agencies, along with presidential aides, ruling party leaders, academics, researchers and representatives from civil society.
The ruling Democratic Party of Korea and government ministries convened a policy consultation meeting Monday morning to discuss economic growth strategies for the second half of 2026 at the National Assembly.
Rep. Han Byung-do, the Democratic Party’s acting chair and floor leader, pledged to “concentrate all available resources on reviving the people’s economy and delivering tangible results that citizens can feel in their daily lives.”
“To this end, the Democratic Party will work to pass key legislation, including the Special Act on Mega Special Zones and the Strategic Export Finance Support Act, by the end of this year,” Han said.
“In particular, we will provide strong legislative and budgetary support for the three megaprojects, as the party has already established a special committee and a dedicated support system for them.”