South Korea launches major industrial strategy for AI and disruptive technologies

South Korea is implementing a massive industrial strategy to secure its position in the global technology supply chain. The government, led by Lee Jae-myung, has proposed a 2027 budget increase of 12.8%, the largest on record, to capitalize on the artificial intelligence boom. A significant portion of this funding is directed toward a “megaproject” to boost semiconductor production, physical AI, and data centers, with plans to double spending in these areas to between 21 trillion and 22 trillion won.

To drive long-term growth, the government has launched the SEED (Strategic Emerging Engines for Disruptive Innovation) program. This initiative targets seven key technology sectors: small modular reactors (SMRs), nuclear fusion, tandem solar cells, quantum computing, satellites, biotechnology, and critical minerals. Specific milestones include the development of a national 100-qubit quantum processor by 2029 and a low-earth orbit satellite network by 2035.

The strategy relies heavily on the success of major domestic players like Samsung Electronics and SK Hynix. These companies are expected to invest approximately 860 billion euros in the country to meet rising demand. By focusing on becoming indispensable to the industrialization of these emerging technologies, South Korea aims to replicate its previous successes in batteries and shipbuilding.