South Korea’s proposed 821 trillion-won ($614.3 billion) 2027 budget combines accelerated investment in artificial intelligence, semiconductors and three mega-projects with measures intended to preserve fiscal stability. Moody’s assessed the plan and the newly created Future Response Fund as balancing fiscal soundness with growth momentum. Separately, the science ministry plans to allocate 4.7 trillion won ($3.49 billion) from its proposed 9.4 trillion-won 2027 AI budget to a homegrown model comparable with global frontier systems, although project details have not been finalized. The government said next year’s spending would be the largest on record while the managed fiscal balance would be at its healthiest level in about 20 years. South Korea also said Moody’s viewed this year’s foreign-exchange stabilization bond issuance as successful after Seoul sold $3 billion and 1.7 billion euros of notes, with narrower euro-denominated spreads reducing international borrowing costs.