--- title: "Storage plummets! South Korea announces a record budget plan exceeding $530 billion, with three \"super projects\" prioritized for funding" type: "News" locale: "en" url: "https://longbridge.com/en/news/292449263.md" description: "South Korea announced a record budget plan exceeding $530 billion, prioritizing support for three major projects: chips, AI data centers, and more. Affected by this news and fluctuations in the storage industry, the stock markets in South Korea and Japan fell sharply, with the KOSPI index triggering a circuit breaker, and technology stocks such as SK Hynix and Samsung Electronics experiencing significant pullbacks" datetime: "2026-07-13T06:59:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292449263.md) - [en](https://longbridge.com/en/news/292449263.md) - [zh-HK](https://longbridge.com/zh-HK/news/292449263.md) --- # Storage plummets! South Korea announces a record budget plan exceeding $530 billion, with three "super projects" prioritized for funding On July 13, financial news from overseas reported that South Korea announced on Monday that it will formulate a record budget expenditure of over 800 trillion won (approximately USD 530.97 billion) for the fiscal year 2027, supported by strong tax revenues from the booming artificial intelligence (AI) chip industry. Budget Minister Park Hong-keun stated at the National Fiscal Strategy Meeting that this expenditure plan will be financed through increased tax revenues and spending cuts. Compared to this year's expenditure plan of 727.9 trillion won, which does not include supplementary budgets, the proposed budget has increased. The government stated that three "super projects"—investment in chips, AI data centers, and physical AI—will receive fiscal priority. The government also indicated that it will ensure funding capacity through significant restructuring of existing expenditure items rather than relying entirely on increased tax revenues. President Lee Jae-myung stated that the government will use all available means to ensure that corporate investments proceed as planned. Lee Jae-myung stated, "The current additional tax revenue is a valuable resource and should be used during this golden period when global AI dominance is being established." Minister Park Hong-keun stated that **the government will seek to restructure approximately 50 trillion won in expenditures, double last year's level, by reviewing discretionary and mandatory spending and cutting underperforming projects.** South Korea plans to launch a Future Response Fund as a strategic investment platform, allocating tax revenues exceeding long-term trends to invest in four areas: youth, growth engines, regions, and talent. On the same day, the stock markets in Japan and South Korea collectively fell, with the Nikkei 225 index down 1.92%, closing at 67,242.73 points. The South Korean Composite Index fell 8.96%, closing at 6,805.88 points. In the afternoon of July 13, the KOSPI index in South Korea saw its intraday decline widen to 8%, falling below 6,900 points, triggering a circuit breaker mechanism and halting trading for 20 minutes, marking the seventh time this year that the South Korean stock market has triggered a circuit breaker. SK Hynix fell over 13%, down nearly 40% from its historical high, with a total market value dropping below USD 900 billion; Samsung Electronics fell over 9%, down more than 30% from its high on June 19 this year; Kioxia fell over 11%. Meanwhile, A-shares and Hong Kong stocks related to computing hardware and semiconductor chips are undergoing adjustments, with A-shares continuing to face pressure in the afternoon, and significant declines in memory chips, with Zhaoyi Innovation hitting the limit down. Previously, Shannon Semiconductor, Demingli, and Chengbang Co., Ltd. also hit the limit down, while Puran Co., Ltd., Yachuang Electronics, Beijing Junzheng, and Baiwei Storage saw declines of over 10%. The Bank of Korea released a report on Monday stating that the global semiconductor market remains in a state of supply shortage, and the current AI-driven supercycle is expected to last for some time, refuting investors' concerns that the chip cycle has peaked ### Related Stocks - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [SKHYV.US](https://longbridge.com/en/quote/SKHYV.US.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [07347.HK](https://longbridge.com/en/quote/07347.HK.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [09347.HK](https://longbridge.com/en/quote/09347.HK.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [603986.CN](https://longbridge.com/en/quote/603986.CN.md) - [03986.HK](https://longbridge.com/en/quote/03986.HK.md) - [300475.CN](https://longbridge.com/en/quote/300475.CN.md) - [001309.CN](https://longbridge.com/en/quote/001309.CN.md) - [603316.CN](https://longbridge.com/en/quote/603316.CN.md) - [688766.CN](https://longbridge.com/en/quote/688766.CN.md) - [301099.CN](https://longbridge.com/en/quote/301099.CN.md) - [300223.CN](https://longbridge.com/en/quote/300223.CN.md) - [688525.CN](https://longbridge.com/en/quote/688525.CN.md) ## Related News & Research - [SK Hynix makes history: AI dominance, ADRs, and the Korea Discount](https://longbridge.com/en/news/292303157.md) - [Samsung Non-Chip Workers Plan Protest Rally Over Bonus Disparity as AI Memory Boom Widens Internal Pay Gap](https://longbridge.com/en/news/291911119.md) - [S Korea's Rebellions targets IPO next year, followed by potential US listing -CEO](https://longbridge.com/en/news/292028690.md) - [Time to rein in leveraged ETFs](https://longbridge.com/en/news/291953047.md) - [S.Korea flags record 2027 budget of over $530 billion as AI chip boom lifts revenues](https://longbridge.com/en/news/292445772.md)