Next Year's Major R&D Budget Hits Record High of 24.8 Trillion Won

Major Game-Changer AI-Semiconductor, Advanced Bio, Quantum Focused Investment
1 Trillion Won for Space and Innovation Challenge R&D
Record 2.94 Trillion Won Investment in Basic Research
2 Trillion Won Support for Global R&D

The major national research and development (R&D) budget, which was significantly reduced this year, will increase to a record high of 24.8 trillion won next year. While concentrated investments will be made in AI, semiconductors, advanced bio, and space sectors, budget support will also be provided for research closely related to public safety, such as earthquakes and electric vehicle fires.

On the 27th, the Ministry of Science and ICT announced that it had finalized the '2025 National R&D Project Budget Allocation and Adjustment (Draft)' at the 9th National Science and Technology Advisory Council review meeting.

The budget confirmed on that day is 24.5 trillion won. The Ministry of Science and ICT explained that an additional 300 billion won will be reflected for projects expected to pass the preliminary feasibility study after June and for multi-ministerial collaborative budgets, making the total major R&D investment a record high of 24.8 trillion won. This exceeds the 24.7 trillion won of 2023, before the R&D budget cuts, by 100 billion won. This year’s major R&D budget is 21.9 trillion won.

The increase in next year’s major R&D budget was previously announced through President Yoon Seok-yeol’s order for a significant expansion. The Presidential Office also stated that the budget would be organized at a record high level. President Yoon went further by directing the abolition of the national R&D preliminary feasibility study, promising active support for the R&D budget.

◆ Firm investment in the three major game changers = The direction of this major R&D budget allocation is to drive national innovation, support a leading research ecosystem, lay the foundation for a dynamic economy, and ensure public safety.

To drive national innovation, 3.4 trillion won will be intensively invested in the three major game changer technologies: AI-semiconductors, advanced bio, and quantum. The increase rate compared to this year reaches 24.2%.

1.1 trillion won will be invested in AI. This is the first time AI investment has exceeded 1 trillion won. The increase rate is 35%. Among the three major game changer technologies, advanced bio received the largest allocation of 2.1 trillion won, with an increase rate of 19.1%. Quantum was allocated 170 billion won, with an increase rate of 31.1%.

A new 1 trillion won has been allocated to innovation and challenge-type R&D, which took its first step this year. The goal is to support bold challenges aiming for a tenfold leap, not just 10% progress.

To create a leading research ecosystem, 2.1 trillion won will be used for global R&D, 2.94 trillion won for basic research, and 1 trillion won for talent acquisition. The Ministry of Science and ICT stated that basic research is also at a record high scale. The government’s policy is to expand cooperation networks with leading countries, support excellent researchers and emerging global fields, and nurture national representative research institutes conducting innovative convergence research. The talent acquisition budget also shows a 23% increase, with 1 trillion won invested. The Ministry emphasized that since the global R&D budget has exceeded 2 trillion won for the first time, strict management will be ensured.

◆ Record high basic research and 2 trillion won scale global R&D = To maintain the foundation of a dynamic economy, 2.4 trillion won will be invested in securing a technological gap in advanced technology fields. The increase rate compared to the previous year is 19.6%. The target fields are secondary batteries, displays, semiconductors, and next-generation communications. Through this, the strategy is to ignite the nation’s next-generation growth engine. The budget for technology sovereignty and new growth engine sectors increased by 12.3% compared to this year, reaching 3.2 trillion won.

For public safety, 3.1 trillion won was allocated for advanced defense power, and 2 trillion won for disaster R&D. The Ministry of Science and ICT explained that the budget was reflected in response to digital crimes such as deepfakes and the recent earthquake in Buan, Jeonbuk. The budget also includes preparations for fires based on electricity, such as electric vehicles. Investment budgets to secure competitiveness of defense export weapon systems such as the K-9 self-propelled howitzer and Cheongung were also included.

With the opening of the Space and Aeronautics Agency, 1 trillion won will be allocated to the space sector next year. This is a 21% increase compared to this year’s budget of 800 billion won. 2.2 trillion won will be invested in technology development to respond to the surge in power demand triggered by AI and electric vehicles and various future energy demands. Through public-private cooperation, focus will be placed on next-generation reactor core technologies such as innovative small reactors, carbon-free energy production, supply, and utilization technologies such as hydrogen, process innovation in key industries, and global carbon regulation response.

The budget for government-funded research institutes also increased by 11.8% compared to this year. In particular, the Ministry of Science and ICT added that the budget for major R&D projects related to government-funded research institutes increased by 21.8%.

Ryu Gwang-jun, head of the Science and Technology Innovation Headquarters, emphasized, “The transition to leading R&D is a survival strategy for South Korea to survive in the technology hegemony competition and an essential process to take a step forward at the crossroads of innovation and stagnation.” He added, “The government will do its best to accelerate the transition to a leading R&D system through system reform and the largest-ever investment, opening a new path for innovation.”

The R&D investment scale announced by the Ministry of Science and ICT this time targets only strategic R&D investment. Head Ryu explained, “Apart from the strategic R&D budget, the general R&D budgets managed by each ministry are being organized by the Ministry of Economy and Finance, so we cannot yet confirm how much the total amount will increase.” This year’s general R&D budget is 4.6 trillion won.