Ministry of Science and ICT's 2022 Budget Increased by 6% from This Year
Expanded Budget for 5 Key Investment Areas Including Digital New Deal
[Asia Economy Reporter Eunmo Koo] The Ministry of Science and ICT (MSIT) announced on the 3rd that the next year's budget plan, totaling 18.5737 trillion won, has been finalized after approval by the National Assembly plenary session. This represents a 6% (1.0583 trillion won) increase from this year’s 17.5154 trillion won, with expanded budgets for Digital New Deal 2.0, basic, foundational, and advanced strategic technology research and development (R&D), fostering three major new industries, nurturing science and ICT talent, and realizing an inclusive society.
The Digital New Deal budget increased by 33.3% to 2.73 trillion won compared to this year. It supports the creation of new products and diverse services in the private sector by utilizing infrastructures such as the data dam established through Digital New Deal 1.0. To strengthen the foundation for artificial intelligence (AI) growth, the budget for building AI training data and supporting AI data vouchers will also be expanded. The plan includes fostering new industries in hyper-connected and hyper-realistic digital content such as the metaverse and digital twins, and strengthening response systems against cyber security threats.
To allow researchers to focus on their work, 7.56 trillion won, a 9.1% increase from this year, will be invested in basic, foundational, and advanced strategic technology budgets. This investment aims to promote space development with active private sector participation, establish a global vaccine hub, and secure advanced technologies such as self-reliance in materials, parts, and equipment technology, quantum computing, and nuclear fusion.
To secure new markets in the biohealth sector, 580 billion won will be invested in new drug development and regenerative medicine projects. Support will be expanded for developing core technologies of new-concept PIM (Processing In Memory) semiconductors that improve AI computational performance and power efficiency, as well as core technologies for autonomous driving in future vehicles. A total of 740 billion won has been allocated to strengthen the training of specialized personnel in future promising technology fields such as space and quantum, and to establish new software education courses led by companies.
The total government R&D budget for next year, carried out by 38 ministries and agencies, is 29.7755 trillion won, an increase of 2.375 trillion won (8.7%) compared to 2021’s 27.4005 trillion won. It has expanded by more than 10 trillion won over the past five years.
Next year’s R&D budget will reliably support key policies such as the advancement of the Korean New Deal 2.0, realization of carbon neutrality by 2050, and fostering three core innovative industries (biohealth, future vehicles, system semiconductors). Additionally, to respond to global technological hegemony competition, proactive investments will be made in advanced strategic technologies such as AI, quantum technology, and space, while focusing on inclusive innovation such as strengthening regional innovation capabilities and supporting young and female scientists and engineers.
Minister Hyesook Lim of the MSIT stated, "Next year’s MSIT budget will be used to lead Korea’s digital transformation and realize a people-centered science and technology innovation nation," adding, "We will do our best to play an active role in economic recovery after COVID-19 and in responding to changes in the economic structure."
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