South Korea unlocks record 2027 budget to drive AI and chip prowess

South Korea unveiled its biggest-ever 2027 budget at 821 trillion won (~$597 billion), a 12.8% year‑on‑year rise funded by a windfall from Samsung and SK Hynix profits, with heavy spending to boost AI capability and next‑generation chip infrastructure. Tax receipts are expected to surge, helping reduce the debt‑to‑GDP ratio to about 48.3% from an estimated 51.6%, while net bond issuance is set to fall and excess tax revenue will be parked in a Future Response Fund for long‑term investments; parliamentary approval is still required.