KoreaGovernment will designate AI clusters, but next year's budget is 'zero won'; Science Ministry asked for 4 billion won, cut in budget review

The government has decided to create 'AI clusters' that gather AI companies, institutions and talent, but the 2027 budget proposal contains no money for them.

Seoul Economic Daily reported on Nov. 1 that the Ministry of Science and ICT requested around 4 billion won for regionally tailored AI programs, including running a dedicated cluster agency, but the Ministry of Planning and Budget did not include it at the review stage. The AI Basic Act lets the government and local governments give administrative, financial and technical support to clusters, and the government plans to take applications from local governments next year and designate national clusters.

An industry source said companies have no reason to move if the benefits don't materialize. A local-government official said no budget seems to mean no government support and warned of a half-baked cluster. The ministry said it is preparing designation notices, that the support scale is under discussion, and that it will try to get the money added during National Assembly deliberations.

The ministry's AI-related budget next year rises about 4.3 trillion won (84.3%) to 9.4 trillion won, 59.6% of which, or 5.6 trillion won, goes to items such as homegrown AI foundation models.