ED Nat'l budget boosts AI drive
President Lee Jae Myung can be seen on the big screen as he makes his policy address detailing the 728 trillion won national budget for 2026 at the National Assembly in Seoul, Monday. Korea Times photo by Ko Young-kwon
President Lee asks for bipartisanship for W728 trillion budget
Fresh from the success of last week’s Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, North Gyeongsang Province, President Lee Jae Myung has announced his administration's 728 trillion won ($525 billion) budget, which includes a massive push to advance the development and application of artificial intelligence (AI).
Asking for bipartisan cooperation to pass the largest-ever national budget by Dec. 2, Lee highlighted the 10.1 trillion won allocated to position Korea as one of the world’s leading AI powerhouses. That amount is more than triple the AI budget for this year. Despite talk of an "AI bubble," the administration and Korean businesses have been advancing sovereign AI initiatives rapidly, a move that Nvidia appears to back, pledging to supply the Korean government and four major conglomerates with 260,000 of its coveted graphics processing units. With industries and technology racing toward AI, the government’s budget appears increasingly justified.
"It is Korea's first budget to open the era of AI," the president said, likening his agenda to the industrialization driven by former President Park Chung-hee and the digital modernization championed by former President Kim Dae-jung. The budget for R&D rose nearly 20 percent to 35.3 trillion won, helping a sector that struggled under sharp cuts implemented by former President Yoon Suk Yeol. While the massive budget boosts AI initiatives, the president has also prioritized helping the socially vulnerable, who are “... most impacted by social changes,” and strengthening self-defense, thereby sending a subtle signal regarding the planned transfer of wartime operational control from the U.S.
Tuesday’s scene at the National Assembly served as a reminder that the partisan bickering, which had largely been forgotten during last week’s APEC summit, could slow or complicate the approval of the national budget. The main opposition People Power Party (PPP) boycotted the president's address to protest the special prosecution’s move to seek a detention warrant for the party’s former floor leader, Choo Kyung-ho, over his alleged role in the Dec. 3 martial law declaration. PPP chief Rep. Jang Dong-hyeok described the situation as “war,” alleging oppression of his party. Some PPP legislators shouted crude remarks as the president entered the National Assembly. The scene recalled a time when the ruling Democratic Party of Korea (DPK), then in opposition, boycotted then-President Yoon Suk Yeol’s address amid an investigation into Lee.
It would be short-sighted not to capitalize on the momentum from Korea’s successful hosting of the APEC summit to enhance national prestige. Now is the time for the Assembly to set aside partisan disputes and seriously consider advancing the country into the AI era, as well as addressing other critical matters such as finalizing the Korea-U.S. tariff agreement. The National Assembly has a critical role in overseeing the budget. The two main parties should examine each item and make decisions guided by the national interest, rather than by party agendas. The subtle but growing pressure on the president and his administration to demonstrate cooperation and compromise in domestic politics should be actively embraced. The PPP is also not exempt from responsibility to cooperate and compromise.
To fund the 728 trillion won budget, the government may need to issue additional state bonds, which could raise the national debt ratio above 50 percent of GDP. Producing and managing a national budget, therefore, must be guided by whether the government can provide the necessary resources and manage them with financial soundness and balance. With local elections in Korea approaching, legislators should be wary of excessive pork-barreling.