South Korea Expands AI and Chip Funding to $108 Billion

The South Korean government increased the scope of a fund to invest in AI, semiconductors, and other technology-related initiatives by an additional KRW50 trillion ($35 billion). The nation’s President Lee Jae Myung revealed at an event hosted in Seoul that the so-called National Growth Fund had been increased to KRW150 trillion from KRW100 trillion. The investment is to be spread over the next five years.

The government hopes the investment, which will be used to grow the country’s AI, semiconductors, biotechnology, defence, robotics, and green mobility sectors, will create up to KRW125 trillion worth of added value to South Korea’s economy. Apparently, Lee did not pull any punches in expressing the importance of investment in technology, stating South Korea was engaged in a war without gun smoke. “Major countries like the US and China are ramping up their state support to strategic industries backed by cutting-edge technologies,” he said.

Around KRW75 trillion of the total sum will be generated from state-run lender Korea Development Bank, which will partner with government ministries to determine where exactly to invest. The remainder will come from contributions from South Korean pension funds, financial institutions, and citizens. Businesses involved in large-scale infrastructure, such as AI expressways and data centres, display panels, defence equipment, and semiconductor chips, are all likely to benefit from the fund, the government added.