Ministry of Science and ICT's 17.5 Trillion Won Budget for Next Year... Korean New Deal and Infectious Disease Response, etc.

[Asia Economy Reporter Seulgina Jo] The Ministry of Science and ICT's budget for 2021 has been set at a total of 17.5154 trillion KRW, an increase of 7.4% compared to this year. The government's research and development (R&D) budget has increased by 13.1% from this year.

On the 2nd, the Ministry of Science and ICT announced that the '2021 Budget and Fund Operation Plan' was finally approved by the National Assembly plenary session. The Ministry's budget for next year was confirmed at 17.5154 trillion KRW, up 7.4% from this year, and the government R&D budget was confirmed at 27.4018 trillion KRW, an increase of 13.1%. Budgets were expanded for the Korean New Deal, basic and fundamental research and development, fostering three major new industries, realizing an inclusive society, and responding to infectious diseases.

Among the Ministry of Science and ICT's budget for next year, 1.9366 trillion KRW will be invested in the Korean New Deal. This is an increase of 132.2% (1.103 trillion KRW) compared to this year. The Digital New Deal, which responds to the digital transformation of the nation and industry and job creation, will receive 1.5315 trillion KRW in support. The Green New Deal policies, such as fine dust reduction and hydrogen technology development, are allocated 61 billion KRW.

Basic research projects such as localization of materials, parts, and equipment, and space and nuclear technology development have been allocated 5.9938 trillion KRW, an increase of 7.8% (432 billion KRW) from this year. In particular, the budget for basic research using a free proposal method, where researchers independently propose research topics and periods, has been significantly expanded by 291 billion KRW to 1.7907 trillion KRW, and the budget for additional designation of small and strong special zones and revitalization of the regional economy was finalized at 60 billion KRW, an increase of 30 billion KRW compared to the government proposal.

Additionally, 710.4 billion KRW has been allocated to foster three major new industries?biohealth, artificial intelligence (AI) semiconductors, and future cars?an increase of 36.6% compared to this year. The plan focuses on increasing support for new technologies such as medical devices and new drugs, and developing new-concept semiconductor (PIM) technology.

A budget of 1.5179 trillion KRW is allocated to realize an inclusive society by bridging the digital divide.

Programs include support for the return of women scientists and engineers with career interruptions (16 billion KRW), training of AI core talents (18 billion KRW), digital competency enhancement education (75.7 billion KRW), and expansion of wireless internet infrastructure (63 billion KRW).

To prepare for the post-COVID-19 era and strengthen basic capabilities to respond to increasingly large-scale disasters, a budget of 139.4 billion KRW was set, an increase of 54.6% from this year.

In particular, the Ministry of Science and ICT plans to strengthen capabilities to respond to new and mutant infectious diseases by establishing the Korea Virus Basic Research Institute (5.5 billion KRW) and developing core technologies for a new and mutant infectious disease response platform (10.2 billion KRW).

Choi Ki-young, Minister of Science and ICT, said, "With the budget for next year confirmed by the National Assembly, we will devote all efforts to implementing projects for realizing a scientifically advanced country with a solid foundation and a digital transformation." He added, "We will also strengthen communication with industry, academia, and research institutes to build an innovative economy foundation leading the post-COVID-19 era."