Lee outlines AI-centered budget amid political boycott

President Lee Jae-myung said on Nov. 4 that South Korea faces a “life-or-death crisis” as it confronts a reshaping of the global trade order and a sweeping transformation driven by artificial intelligence. Speaking before the National Assembly to outline next year’s budget proposal, Lee said the 728-trillion-won plan, the first full budget under his administration, is aimed at helping the nation overcome current challenges and prepare for an AI-driven future.

“Next year marks a historic starting point for opening the AI era and laying the foundation for Korea’s next 100 years,” Lee told lawmakers. “This budget proposal is the Republic of Korea’s first to usher in the AI era.” He said 10.1 trillion won has been allocated to help the country advance toward becoming one of the world’s top three AI powers, pledging targeted investment in core infrastructure, talent development and leadership in what he called “physical AI.”

Reflecting on recent turmoil, Lee said, “For the past five months, we have worked with extraordinary resolve to overcome the economic chill that followed the illegal martial law incident. Fortunately, our economy is emerging from crisis.” He added, “But it would be dangerous to grow complacent. In the AI era, even a single day’s delay can set us back a generation.”

Addressing concerns over the government’s expansionary fiscal stance centered on AI and research and development, Lee stressed the need for fiscal discipline. He said the government worked to ensure that not a single won was wasted and cut 27 trillion won in spending, the largest reduction on record.

Lee also said the government would listen closely to the National Assembly’s proposals with an open mind and is ready to accept any sound alternatives. Glancing toward the empty seats of the People Power Party, whose lawmakers boycotted the address, he said, “It feels a bit empty here.”

The People Power Party boycotted the speech to protest a special prosecutor’s request for an arrest warrant for former Floor Leader Chu Kyung-ho, who faces allegations of obstructing the vote to lift martial law. As Lee arrived, the party held a rally on the main staircase of the National Assembly rotunda, then issued a statement after a closed-door meeting condemning what it called “humiliating, unconstitutional investigations targeting opposition leaders in a campaign of political retaliation.”

People Power Party leader Jang Dong-hyuk said during the meeting, “This is war. We must mobilize all our strength to bring down the Lee Jae-myung administration,” adding, “Today’s policy speech must be the last.”


Kyu-Jin Shin newjin@donga.com