Presidential Office: "Next Year's Government R&D Budget Nears 30 Trillion Won... 'Restoration' Expression Not Appropriate"

Sangwook Park, Chief of Science and Technology, "Fundamentally Transformed in Content"
"No Financial Capacity but Large Increase"

Park Sang-wook, Chief of Science and Technology at the Presidential Office, is briefing on the results of the 2025 research and development (R&D) funding allocation on the 27th at the Presidential Office building in Yongsan, Seoul. [Image source=Yonhap News]

The Presidential Office announced on the 27th that "the total government research and development (R&D) budget for next year is expected to approach 30 trillion won, surpassing last year's record high of 29.3 trillion won." Regarding the increase of the R&D budget to a historic high of 24.8 trillion won next year, the office stated, "Despite very limited fiscal capacity, we have made our best effort to significantly increase the budget," adding that "the term 'restoration' is inappropriate."

Park Sang-wook, Chief of Science and Technology at the Presidential Office, held a briefing in the afternoon at the Yongsan Presidential Office building in Seoul on the allocation results of the 2025 R&D funds, saying, "The main R&D budget is slightly larger than last year, but in terms of content, it is close to a complete transformation."

The Ministry of Science and ICT finalized the '2025 National R&D Project Budget Allocation and Adjustment (Draft)' at the National Science and Technology Advisory Council meeting held that day. According to the finalized plan, the R&D budget is set at 24.8 trillion won, exceeding last year's pre-cut budget of 24.7 trillion won by 100 billion won. This year's main R&D budget is 21.9 trillion won.

Chief Park emphasized, "Next year's main R&D budget is approximately 24.8 trillion won, the largest ever at the time of the Science and Technology Innovation Headquarters' budget formulation. This represents a 13.2% increase compared to this year's main R&D budget of 21.9 trillion won, and despite very limited fiscal capacity, we have made our best effort to significantly increase it."

He continued, "The R&D budget is divided into major R&D and general R&D. When the general R&D budget, which will be formulated by the Ministry of Economy and Finance, is added, the total government R&D budget for next year is expected to exceed last year's record high of 29.3 trillion won and approach 30 trillion won. However, this will be finalized by the end of August when the budget formulation process is completed."

Chief Park explained, "As key research areas, we have significantly expanded investments in the three game-changing fields announced as a presidential initiative this spring: artificial intelligence (AI) and semiconductors, advanced bio, and quantum science and technology. With the opening of the Space Agency, the space sector budget will exceed 1 trillion won for the first time next year. To lead the future nuclear power industry and secure energy security, the budget for next-generation nuclear technologies such as innovative small modular reactors (SMR) and 4th generation nuclear power plants has been more than doubled compared to last year."

He added, "We have allocated 1 trillion won to innovative challenge-type R&D projects that aim to be first and best, and basic research, as the ultimate game changer's seed, has been increased for the second consecutive year to promote qualitative transformation. Additionally, for new general R&D projects, we plan to support the Korean-style Staripend budget to provide stable research environments by covering graduate students' labor costs in science and engineering, and also support bundled research funds at the university level."

Regarding the background of the R&D budget increase, a Presidential Office official told reporters in the afternoon, "The reason we could increase next year's budget is that the increase was possible based on the results of this year's budget restructuring. We have decisively eliminated 'divide-and-share' and 'scattergun' style R&D projects, and overall, about 10% of the budget was restructured this year."

In response to claims that the large cuts made this year were simply restored, the official said, "Significant increases were made in the three game-changing fields of AI and semiconductors, advanced bio, and quantum, which are the government's signature projects. Innovative challenge-type R&D was not separately managed until early this year, but we created a core challenge-type project category and established a separate management system with a consultative body of executing and managing entities, nearly doubling the budget."

He also added, "Although already applied, global R&D, that is, international cooperation R&D, is also notable with about 2.1 trillion won allocated for next year. Basic research has also been significantly increased this time."