[Budget Insight] Examining the 'AI Budget That Will Decide the Nation's Fate'... Disorganized by Ministry, Lacking in Detail

AI Budget Set at 10 Trillion Won for 2026
Lack of Detailed Plans and Inter-Ministerial Coordination Criticized
Controversy Over Feasibility of Projects Exempted from Preliminary Reviews

"Korea's first budget to usher in the era of artificial intelligence (AI)." This is the new budget direction presented by President Lee Jae-myung, who has pledged to build an AI superhighway. In reality, the budget allocated for AI has surged to the point of being compared to an all-out war effort. However, some argue that this is merely a quantitative push without concrete plans. This is why there are calls for more meticulous coordination during the upcoming budget review process.

According to the National Assembly and government on November 6, the 2026 budget proposal designates "the great transformation for the AI Top 3" as a key investment focus, allocating a total of 10.1398 trillion won. This represents more than a threefold increase compared to the main budget for 2025, which was about 3.3 trillion won. Even compared to the 2025 supplementary budget, which already included a significant increase for AI, the amount has grown by 4.4832 trillion won.

President Lee Jae-myung is delivering the policy speech on the 2026 budget bill and fund operation plan at the National Assembly plenary session on the morning of the 4th. 2025.11.04 Photo by Kim Hyunmin

Previously, during his policy speech on the budget at the National Assembly on November 4, President Lee stated, "2.6 trillion won will be invested in introducing AI across all sectors-industry, daily life, and public services-while 7.5 trillion won will be allocated for talent development and infrastructure." In addition, positioning Korea as a leading nation in physical AI, he announced, "To accelerate the AI transformation in key industries such as robotics, automobiles, shipbuilding, home appliances and semiconductors, and factories, we will invest approximately 6 trillion won over the next five years."

However, it is important to note that the significant budget increase has not been accompanied by careful coordination. There are criticisms that budget allocations were made before inter-ministerial coordination or detailed plans were in place.

According to analyses by the National Assembly Budget Office, "The AX-Sprint 300 project, which is part of the 'Life AI Transformation (AX)' sector, involves the same content but is managed separately by different ministries. This, along with the inconsistent application of preliminary feasibility studies, could cause confusion in project management."

This project, aimed at the commercialization and expansion of AI convergence, involves ten ministries including the Ministry of Trade, Industry and Energy and the Ministry of Health and Welfare. Concerns have been raised that these projects lack detailed plans or sufficient management tools, highlighting the need to establish clear project guidelines.

For the project to establish a national general-purpose AI research institute (AGI) by bringing together world-class domestic researchers, critics point out that it is being pushed forward without any concrete plans, such as organizational structure or funding requirements. In addition, similar projects also require adjustment. For example, the public data projects of the Ministry of the Interior and Safety and the Ministry of Science and ICT, as well as the medical AI projects of the Ministry of Food and Drug Safety and the Ministry of Health and Welfare, have raised concerns about overlap and redundancy.

Questions have also been raised regarding the feasibility of these projects. The National Assembly Budget Office, in its analysis of the related budget, questioned the appropriateness of exempting certain projects from preliminary feasibility studies. For example, projects that are closer to the "industry and small and medium-sized enterprises sector" or the "agriculture, forestry, maritime, and fisheries sector" have received such exemptions.

An official from the Budget Office stated, "Although the share of non-research and development (R&D) spending in the budget is increasing, certain projects are being categorically excluded from preliminary feasibility studies simply because they are classified under telecommunications in the program budget system. There is a risk that large-scale projects will be implemented without feasibility review, leading to inefficient budget execution. Therefore, these projects should be included as subjects of preliminary feasibility studies."