President Lee Jae Myung said South Korea will make bold investments in AI and future growth engines to boost the growth potential of its economy. (EPA Images pic)SEOUL: South Korea will double spending on artificial intelligence and semiconductors in 2027 to a record high of US$16 billion, President Lee Jae Myung said Monday in his annual budget speech to parliament.

The country is a tech powerhouse home to Samsung Electronics and SK hynix, two of the world's three biggest makers of memory chips -- computer components in huge demand thanks to the AI boom.

"We will allocate 21.3 trillion won (US$16 billion) to semiconductors, physical AI and AI data centres, the 'three mega-projects', as well as investment in artificial intelligence, nearly double this year's amount," Lee said.