What does South Korea’s proposed 162 trillion won growth fund aim to do?

Lee said the fund would serve as a strategic investment platform supporting a recovery in potential growth. He also described it as a fiscal stabilization mechanism for managing increasingly volatile tax revenues.

Which projects and technology fields would receive funding under Lee Jae Myung’s budget proposal?

The proposed 21.3 trillion won for AI and the three megaprojects covers semiconductors, physical AI and AI data centers. A separate 13.8 trillion won is earmarked for 10 next-generation strategic technology fields that Lee said would drive future growth.

What welfare changes did Lee Jae Myung pledge in his budget address?

Lee pledged expanded welfare support, including automatic access to major benefits for people who qualify and higher livelihood payments.

BreakingPresident highlights growth fund as he seeks parliamentary backing for record budget

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Summary

President Lee Jae Myung urged the National Assembly in Seoul on Monday to approve next year’s record 820.9 trillion won budget by Dec. 2. He highlighted a proposed 162 trillion won growth fund backed by additional tax revenue from the semiconductor boom. The proposal includes 21.3 trillion won for AI and three megaprojects, and 13.8 trillion won for 10 strategic technology fields. Lee also pledged expanded welfare support, including automatic access to major benefits for eligible recipients and higher livelihood payments.

Key Facts

Lee described the fund as a strategic investment platform to support a recovery in potential growth and help manage volatile tax revenues.
The 21.3 trillion won allocation for AI and the three megaprojects is nearly twice this year’s amount.
The three megaprojects are semiconductors, physical AI and AI data centers.
Lee said the 13.8 trillion won investment would cover 10 next-generation strategic technology fields.
This was Lee’s fourth budget address since taking office, following supplementary-budget speeches in June 2025 and April this year, and an address on the 2026 budget in November last year.

By Yi Whan-woo

Published Nov 2, 2026 10:32 am KST
Updated Nov 2, 2026 10:33 am KST

President Lee Jae Myung delivers an address on the 2027 budget at the National Assembly in Yeouido, Seoul, Monday. Yonhap

President Lee Jae Myung on Monday highlighted a proposed 162 trillion won ($120.83 billion) growth fund backed by additional tax revenue from the semiconductor boom, as he sought parliamentary approval for next year’s record 820.9 trillion won budget.

Speaking at the National Assembly, Lee also outlined 21.3 trillion won for artificial intelligence (AI) and three megaprojects, along with 13.8 trillion won for 10 next-generation strategic technology fields.

He pledged expanded welfare support, including automatic access to major benefits for eligible recipients and higher livelihood payments.

Lawmakers listen to President Lee Jae Myung’s speech on the 2027 budget at the National Assembly in Yeouido, Seoul, Monday. Yonhap

“The new fund will serve as a strategic investment platform supporting a recovery in potential growth, as well as an innovative fiscal stabilization mechanism to manage increasingly volatile tax revenues,” he said in his speech before the lawmakers.

On technology investment, he said, “We will invest 21.3 trillion won, nearly twice this year’s amount, in AI and the three megaprojects — semiconductors, physical AI and AI data centers.”

“We will invest 13.8 trillion won in the next 10 strategic technology fields that will drive future growth, securing an overwhelming competitive lead,” he added.

The president asked lawmakers to approve next year’s budget proposal and accompanying legislation by Dec. 2, the deadline set by law.

It was Lee’s fourth budget address since taking office, following speeches on supplementary budgets in June 2025 and April this year, and the 2026 budget in November last year.

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