South Korea plans to triple AI spending to $6.9 billion in 2026, boost defense, and secure Nvidia chips amid U.S. trade gains and political tensions.

South Korean President Lee Jae Myung announced plans to triple AI spending to 10.1 trillion won ($6.9 billion) in 2026, aiming to boost semiconductors, automobiles, and robotics, while proposing a record 728 trillion won budget with an 8.2% defense increase to 66.3 trillion won. The move supports military modernization and reduced U.S. reliance, following a bilateral meeting with President Trump that secured lower tariffs on key exports and a deal with Nvidia for 260,000 advanced GPUs. The speech, delivered amid political tensions and an opposition boycott, underscores South Korea’s push for technological and defense self-reliance.