[Full Text] President Lee: "10 Trillion Won for the AI Transformation, Aiming for Top 3 Global Powerhouse"

Policy Speech at the National Assembly on the 2026 Budget Proposal

On the 4th, President Lee Jae-myung stated, "The government's budget proposal for next year is Korea's first budget to open the era of artificial intelligence (AI)," announcing plans to build an AI superhighway.

During his policy speech at the National Assembly on this day, President Lee shared the achievements of the 2025 Asia-Pacific Economic Cooperation (APEC) summit and called for bipartisan cooperation from the National Assembly on the new year's budget proposal. In particular, President Lee emphasized that, aiming for Korea to become one of the "top three AI powerhouses," next year's budget will be more than tripled compared to this year, with active investments in establishing regional physical AI hubs and nurturing 11,000 AI talents. He also pledged to provide robust protection for vulnerable groups who are being marginalized due to growing polarization caused by new technological advancements, and to increase the number of labor inspectors by 2,000 to prevent workplace injuries and fatalities.

Additionally, he announced plans to expand the child allowance age from 7 to 8 years old, increase senior jobs from 1.1 million to 1.15 million, and provide a monthly "rural basic income" of 150,000 won to residents in depopulated areas, thereby strengthening support throughout all stages of life.

Explaining next year's 728 trillion won budget proposal, President Lee said, "We are now at a critical crossroads where we must seek national survival in the face of an unprecedented restructuring of the international trade order and the AI revolution." The government has set the total expenditure for 2026 at 728 trillion won, an 8.1% increase over this year, marking both the first main budget of the Lee Jae-myung administration and the largest in history.

President Lee Jae-myung is delivering a policy speech on the 2026 budget proposal at the National Assembly on the morning of the 4th.

The following is the full text of the policy speech.

Dear fellow citizens,

Speaker Woo Wonshik and members of the National Assembly,

It is deeply meaningful for me to personally explain the government’s budget proposal for next year at the first regular session of the National Assembly since the launch of the new administration.

Before I explain the budget proposal,

I would like to sincerely thank all citizens

who joined forces for the success of the Gyeongju APEC Summit.

Thank you.

Thanks to your support and the cooperation of the National Assembly,

Korea has firmly established itself as a responsible global nation

leading the world’s prosperity, exchange, and cooperation.

For the first time at an APEC summit,

we agreed to jointly address global challenges such as artificial intelligence and low birth rates and aging societies,

and by formalizing the cultural creative industry as a new growth engine for APEC,

we have solidified the foundation for the sustainable growth of K-culture in the future.

With the world watching, Korea led the adoption of the "Gyeongju Declaration,"

enabling our country to take the lead in promoting exchange, prosperity,

and peace in the Asia-Pacific region.

In particular, during the Korea-U.S. summit held during APEC week,

we concluded tariff negotiations with the United States,

thereby reducing economic uncertainty for Korea.

By securing tariff rates on par with those of our competitors in our main export sectors, such as automobiles and semiconductors,

we have laid the groundwork for fair competition on a level playing field.

We set annual investment limits in the U.S. investment package,

minimizing the impact on the foreign exchange market that many had feared,

and established multiple safeguards in the selection and operation of investment projects,

increasing the likelihood of investment recovery.

Furthermore, progress in negotiations on nuclear fuel supply for nuclear-powered submarines

has further strengthened the foundation for self-reliant national defense,

and the breakthrough in uranium enrichment and spent nuclear fuel reprocessing

has enhanced our future energy security.

Through the Korea-China summit,

we have fully restored Korea-China relations,

and both countries have agreed to move forward together as strategic partners for practical cooperation and mutual benefit.

Above all, with a shared understanding that "the people's livelihood comes first,"

the two countries signed a 70 trillion won currency swap agreement between their central banks,

as well as six MOUs, including joint responses to transnational scam crimes.

Even in the worst situations, we have given our all, pouring in our souls, to achieve the best possible outcomes.

Going forward, the government will continue to strengthen Korea’s national power and global standing through pragmatic, national interest-centered diplomacy.

Today marks exactly five months since I was inaugurated as President.

To overcome the economic hardship for the people, which intensified in the aftermath of the illegal martial law,

I have worked with extraordinary determination for the past five months,

and fortunately, our economy is now emerging from crisis.

Consumer sentiment is recovering,

and after negative growth in the first quarter of this year, the economic growth rate rebounded to 1.2% in the third quarter, the highest in six quarters.

The stock index has also surpassed 4,000.

Thanks to the cooperation of the people,

geopolitical, governance, and market transparency risks that had weighed on stock prices have partially improved,

and policies for industrial economy, including artificial intelligence, are gradually taking root.

However, the situation we face is far from easy, and we cannot afford to be complacent or satisfied.

We are now at a critical crossroads, facing an unprecedented restructuring of the international trade order

and the wave of the AI revolution, where we must seek national survival.

If we fail to read the changes and only follow others, we will be endlessly left behind,

but if we lead the changes and stay half a step ahead, we can enjoy unlimited opportunities.

Just as we transitioned from an agricultural society to an industrial society,

and from an industrial society to an information society,

the transition to an AI society is inevitable.

In the era of industrialization, being a day late meant falling a month behind;

in the information era, a day late meant falling a year behind;

but in the AI era, being a day late means falling a generation behind.

Regrettably, the previous administration not only wasted precious time,

but also regressed by drastically cutting the R&D budget.

Because our start was delayed, we must now accelerate our efforts to catch up with the frontrunners and seize our own opportunities.

Just as President Park Chung-hee built the highway for industrialization,

and President Kim Dae-jung paved the highway for informatization,

it is now time to build the superhighway for the AI era

and open a new future of leap and growth.

The government’s 2026 budget proposal

is Korea’s first budget to open the era of artificial intelligence.

All government budgets are funded by taxes paid by the people,

and since each and every citizen’s sweat and tears are embedded in those taxes,

we have strived to ensure that not a single penny is wasted.

We have boldly allocated essential budgets to prepare for the future,

while drastically cutting unnecessary or non-urgent expenditures.

Including low-performing and low-efficiency spending,

we have cut a record 27 trillion won in expenditures,

and made all details transparently public

so that the people can properly monitor and exercise their sovereignty.

The government has set the total expenditure for 2026

at 728 trillion won, an 8.1% increase over this year.

This is a strategic investment that considers both future growth and fiscal sustainability in the AI era, so I ask for the National Assembly’s active cooperation.

Now, I will explain the key directions of next year’s budget proposal.

First, we will greatly expand investment to open the "AI era" and solidify the foundation for growth.

We have allocated a total of 10.1 trillion won for the great transformation to become one of the "top three AI powerhouses."

This is more than three times the 3.3 trillion won allocated this year.

Of this, 2.6 trillion won will be invested in introducing AI across all sectors-industry, daily life, and the public sector,

and 7.5 trillion won will be invested in nurturing talent and building infrastructure.

First, to become a leading nation in physical AI,

we will focus investments on key projects by utilizing Korea’s excellent manufacturing capabilities and data.

To quickly achieve the AI transformation in major industries such as robotics, automobiles, shipbuilding, home appliances and semiconductors, and factories,

we will invest about 6 trillion won over the next five years.

With this budget,

we will establish regional physical AI hubs in each metropolitan area linked to local specialized industries,

and promote AI-based regional innovation through large-scale R&D and demonstration projects.

We will support the rapid adoption of AI in 300 daily life-related products such as biohealth, housing, and logistics,

and expand the introduction of AI in the public sector, focusing on welfare, employment, taxation, and new drug review.

Next, we will boldly invest in nurturing talent and building core infrastructure.

We will train 11,000 high-level talents to strengthen AI competitiveness,

and provide customized education by generation

so that everyone can proactively utilize AI.

We will purchase an additional 15,000 high-performance GPUs,

the key component that determines competitiveness in the AI era,

to achieve the government’s goal of securing 35,000 units ahead of schedule.

Since Nvidia has agreed to supply 260,000 GPUs to Korea,

domestic private companies will also have no difficulty securing GPUs.

We have expanded R&D investment for the development of core technologies in advanced strategic industries-

including AI, content, and defense-

by 19.3% to a record 35.3 trillion won.

We will establish a 150 trillion won National Growth Fund over the next five years

to foster advanced strategic industries, the seeds of future growth,

and ensure that the benefits of growth are shared by all citizens.

In the AI era, the importance of culture will inevitably become even greater.

To further strengthen the power of our culture, which is attracting global attention,

we will spare no investment in K-culture.

We will increase the scale of the K-content fund by 200 billion won

to invest in the cultural content industry,

and support young creators so they can focus on creative activities without worrying about their livelihoods.

To boost K-food and K-beauty in connection with Hallyu,

we will greatly expand export vouchers and loan support,

strengthening support at every stage of the value chain, including production, sales, and distribution.

AI technology is also transforming the defense industry.

By discovering startups with advanced technology and investing in R&D,

we will foster the defense industry as a core manufacturing sector in the AI era,

laying the foundation for Korea to become one of the world’s top four defense powers.

To this end, next year’s defense budget

has been set at about 66.3 trillion won, an 8.2% increase over this year.

We will upgrade conventional weapon systems to cutting-edge systems suitable for the AI era,

quickly transform our military into an elite smart force,

dramatically strengthen our defense capabilities,

and firmly realize our aspiration for self-reliant national defense.

Isn’t it a matter of national pride that Korea, which spends 1.4 times North Korea’s annual GDP on defense

and is ranked fifth in the world in military power,

should not rely on others for its defense?

Second, we will provide robust protection for vulnerable groups

and firmly safeguard the lives and safety of our people.

New technological advances contribute to improving the quality of human life,

but they also cast a shadow by widening disparities.

It is the fundamental responsibility of the state to protect the socially disadvantaged and vulnerable, who are the first and most affected by the shocks of changing times.

To ensure a stable income base for low-income households,

we will raise the standard median income by a record 6.51%,

so that a four-person household will receive at least 2 million won per month in living allowances.

We will expand the number of beneficiaries of daytime activity services for people with developmental disabilities,

and significantly increase jobs for people with disabilities,

solidifying the foundation for independence and social participation.

We will also do our utmost to ensure the safety of the people

from various accidents, disasters, and calamities.

No one should ever be injured or lose their life at work again.

We will increase the number of labor inspectors by 2,000,

and introduce "workplace guardians" to actively respond to industrial accidents.

Industries with frequent industrial accidents, such as construction and shipbuilding, will be subject to constant on-site inspections.

We will also support the expansion of safety facilities at 17,000 small businesses and construction sites.

We have allocated a total of 5.5 trillion won for disaster prevention and rapid response,

an increase of 1.8 trillion won over last year.

We will now build a society where no one is left alone in the face of threats to their livelihood or life,

and where the fundamentals are strong.

Fundamentally, we will do our utmost to establish peace on the Korean Peninsula.

If peace is shaken,

democracy, the economy, and the safety of the people are inevitably threatened.

We will make bold and magnanimous efforts to restore trust and lay the foundation for dialogue and cooperation between the two Koreas.

We will continue to work to ease military tensions along the demilitarized zone,

and open a new era of peaceful coexistence and joint growth on the Korean Peninsula through the "END Initiative"-Exchange and Cooperation (E), Normalization of Relations (N), and Denuclearization (D).

Finally,

we will actively pursue balanced development along with comprehensive support throughout the life cycle.

In the AI era, everyone must play a leading role,

and every region must be at the center.

First, we will actively respond to demographic changes

through customized support by age group.

To reverse the declining birth rate, we will expand the child allowance age

from 7 years old to 8 years old in 2026,

and further to 12 years old during my term.

We will introduce a "Youth Future Savings" program

where, if low-income youth save money,

the government will match up to 12%,

helping them build assets.

We will expand "community-based integrated care" nationwide

so that seniors facing difficulties in daily life can spend their later years comfortably where they have always lived,

and increase senior jobs from 1.1 million to 1.15 million,

expanding opportunities for social participation.

To reduce the cost of living for the people,

we will introduce a public transportation pass to significantly lower transportation costs.

We will also provide solid support for small business owners facing difficulties

by offering management stability vouchers and issuing 24 trillion won in local gift certificates.

In preparing this budget proposal,

the government has boldly introduced a new principle of regional preferential finance,

so that regions, not just the capital area, become the center of growth and open a new era of "five major regions and three special zones."

To ease concentration in the capital area and promote balanced national development,

the farther a region is from the capital, the stronger the support it will receive.

As part of this, we have designed seven financial projects, including child allowance and senior jobs,

so that non-capital regions can receive more support.

In addition, whenever national projects requiring funding are implemented,

we will continue to expand regional priority and preference.

Residents in depopulated areas

will receive a monthly rural basic income of 150,000 won.

In connection with regional strategic industries,

we will foster national universities as hubs of cooperation among government, industry, academia, and research,

and establish a package support system encompassing undergraduate, graduate, and research institutes.

We have also greatly expanded the scale of block grants to 10.6 trillion won-about three times the previous amount-

so that local governments can autonomously decide on projects according to their circumstances,

thereby significantly enhancing the autonomy of local government administration.

Proud citizens who have built today’s Korea,

Speaker of the National Assembly and members,

Next year will be a historic starting point for opening the "AI era"

and preparing for Korea’s next century.

I hope we can work together so that the coming future will be filled with hope and opportunity, not despair and anxiety.

I believe in the strength of our people.

That is why I am confident.

We achieved the Miracle on the Han River from the ruins of war,

and overcame the IMF foreign exchange crisis through the gold-collecting campaign.

If our people unite, there is nothing we cannot accomplish.

Just as we successfully achieved industrialization and informatization,

together with the great people of Korea, we will boldly open the door to the "AI era."

For the future of Korea,

the government will listen to the National Assembly’s proposals with an open mind,

and accept good alternatives at any time.

Although there are differences between the ruling and opposition parties,

and such unfortunate realities are revealed,

I believe our sincerity for the people and the country is the same.

I ask for bipartisan cooperation so that this budget proposal can be passed within the legal deadline

and Korea can move toward a new future.

I look forward to the 2026 budget proposal being finalized quickly after thorough deliberation.

Thank you.