Government to Hold National Science and Technology Advisory Council Meeting on the 28th Afternoon and Finalize
Investment Increased by 500 Billion Won to 24 Trillion Won Compared to This Year
Stagnation Outside Yoon Administration's Key Areas, Real Decrease Considering Inflation
[Asia Economy Reporter Kim Bong-su] The government has tentatively decided to set next year's national research and development (R&D) project budget at 24.7 trillion won, a 1.7% increase from the previous year. However, considering that this year's inflation rate is expected to exceed 6%, the budget has effectively decreased. While the budget for key technology research related to the Yoon Seok-yeol administration's national agenda, such as semiconductors and advanced bio, has significantly increased, budgets for other sectors like hydrogen, which were prioritized by the previous administration, have remained stagnant, resulting in an effective decrease.
On the afternoon of the 28th, the Ministry of Science and ICT held a National Science and Technology Advisory Council review meeting and finalized the "2023 National R&D Project Budget Allocation and Adjustment" plan. The total budget size was set at 24.7 trillion won, an increase of 500 billion won (1.7%) from last year's 24.2 trillion won.
To strengthen the competitiveness of ultra-gap industries such as semiconductors and next-generation nuclear power plants, 1.0962 trillion won will be spent. This is a 7.7% increase from last year's 1.02 trillion won. Specifically, 489.5 billion won (8.5%↑) will be invested in semiconductor and display R&D, 99.2 billion won (31.1%↑) in secondary batteries, and notably, the next-generation nuclear power R&D budget will increase by 50.5%, from 19.8 billion won this year to 29.7 billion won next year. Meanwhile, the R&D budget for establishing a hydrogen ecosystem is 290.8 billion won (0.5%↑), similar to this year's 289.5 billion won, which effectively represents a decrease when considering inflation. The R&D budget for 5G and 6G fields will increase by 4.3% to 194.5 billion won from this year's 186.4 billion won.
The R&D budget for future challenging science and technology fields such as advanced bio, aerospace, and quantum computing will also increase by 11.2% from this year's 2.15 trillion won to 2.3944 trillion won. Specifically, 693 billion won is allocated for advanced bio, 839.2 billion won for aerospace, 95.3 billion won for quantum science, 758.5 billion won for artificial intelligence and robotics, 130.5 billion won for cybersecurity, and 11.2 billion won for infrastructure and ecosystem building.
In the fields of talent development and basic research, 567.2 billion won will be invested in nurturing talented individuals in promising technology sectors, and 2.58 trillion won in creative and challenging basic research. Budgets for supporting corporate and regional R&D will be 1.57 trillion won and 960 billion won, respectively.
Additionally, to promote the creation of tangible outcomes for the public, the carbon neutrality R&D budget is set at 2.33 trillion won (3.7%↑ from the previous year), and the digital transformation budget at 2.42 trillion won (17.2%↑ from the previous year). The social problem-solving R&D budget allocates 2.25 trillion won (1.6%) for disaster and safety sectors, and 431.9 billion won (7.5%↑) for field-applied social problem-solving R&D.
Joo Young-chang, head of the Science and Technology Innovation Bureau at the Ministry of Science and ICT, said, "Although financial conditions are difficult due to domestic and international uncertainties, we will continue efforts to expand R&D investment. This year marks the preparation of the first R&D budget under the Yoon Seok-yeol administration, and we will work closely with related ministries to faithfully implement the new government's national agenda, support economic growth, and ensure that the public benefits from the outcomes."
Meanwhile, this budget allocation plan will be notified to the Ministry of Economy and Finance by the 30th and will be included in next year's government budget proposal to be submitted to the National Assembly in September.
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