South Korea unveils record $600B budget, 12.8% spending surge on AI push

South Korea proposed a record 821 trillion won ($600B) budget for 2027, a 12.8% year-on-year increase, the largest in history, funded partly by a chip windfall. The plan signals a major fiscal expansion to bolster the country's AI and tech competitiveness. The move could support growth but raises questions about fiscal sustainability and potential inflationary pressures.