South Korea sets record US$600 billion budget, backed by chip windfall

South Korea on Tuesday unveiled its most aggressive financial spending plan on record, setting total government expenditure for 2027 at 821 trillion won (US$600 billion) to strengthen the country’s technological edge amid the global AI race.In its annual budget proposal, the budget ministry said the spending plan ‌represented a 12.8 per cent rise from 2026, marking the largest year-on-year increase in the country’s history.The proposal signals a shift in Asia’s fourth-largest economy under President Lee Jae Myung, who has championed an expansionary financial policy since taking office in June last year, pivoting away from three years of austerity under his predecessor.