Lee Hyoung-il Pledges to Fast-Track AI Projects With South Korea’s Chip-Boom Windfall

South Korea’s finance minister nominee, Lee Hyoung-il, said he would swiftly advance the government’s three AI investment “mega projects” and actively use the policy capacity created by the global semiconductor boom to maintain economic momentum. 2

The pledge came a day after the government unveiled a proposed 2027 spending plan of roughly 821 trillion won (about $597 billion), described as its most aggressive fiscal-expansion plan on record. The budget is intended to reinforce South Korea’s technological position amid global competition in AI. 1

What Lee pledged

Lee’s commitment centered on turning the three mega projects into large-scale investment and new growth engines. He also said the government would make pre-emptive investments in advanced future technologies. 24

His broader approach paired technology spending with support for groups that may be less able to benefit directly from a semiconductor-led upswing. According to Reuters, he said the available policy capacity would be directed toward young people and economically vulnerable groups, including small businesses and small and medium-sized enterprises. 2

Why the semiconductor boom matters

The government’s fiscal room is closely tied to its revenue outlook. It projected total tax revenue of 584.4 trillion won in 2027, a 40.7% increase from the prior year. Corporate-tax receipts were expected to more than double, helped by record profits at chipmakers. 1

That expected revenue surge is the foundation for the proposed spending expansion and its AI-focused investment drive. But it also means the strategy is substantially linked to the strength of the semiconductor cycle: the government is seeking to convert a chip-industry windfall into longer-term capacity in AI and other advanced technologies. 12

The practical takeaway

Lee’s pledge was not simply to spend more. It was to use the proposed record budget and semiconductor-driven policy capacity in two directions at once: build new technology-led growth engines through the three AI mega projects, while extending support to younger people, vulnerable groups and smaller businesses. Whether that approach delivers depends on the projects’ implementation and on the durability of the revenue boost underpinning the plan. 12