19.3% Increase Over Previous Year
Focus on Strategic Technologies, Defense Industry, and AI
The government’s research and development (R&D) budget for next year has been set at a record-high 35.3 trillion won. Of this, 30.1 trillion won is included in the main R&D budget allocation and adjustment plan.
Park Inkyu, Director-General for Science and Technology Innovation at the Ministry of Science and ICT, explained at a briefing on the main R&D budget allocation and adjustment plan held at the Government Seoul Office on the afternoon of the 22nd, “We have significantly expanded R&D, which is the core of technology-driven growth, to support a major leap in national productivity and foster future strategic industries.” He added, “We have not only expanded fiscal support but also made significant efforts to advance the methods of support, so that the research ecosystem, which was damaged by previous budget cuts, can not only recover but also be upgraded to the next level.”
Earlier that day, the Ministry of Science and ICT announced that the ‘2026 National R&D Project Budget Allocation and Adjustment Plan’ was reviewed and approved at the plenary session of the National Science and Technology Advisory Council held at the Presidential Office. Accordingly, next year’s R&D investment will reach 35.3 trillion won, a 19.3% increase from this year’s 29.7 trillion won. This plan will be submitted to the National Assembly as part of the government’s budget proposal, along with the general R&D budget.
Next year’s main R&D budget has been established around two pillars: ‘technology-driven growth’ and ‘growth for all.’ For technology-driven growth, an investment of 2.2 trillion won is planned. The main goal is to make firm investments in R&D to support a major leap in productivity and the fostering and upgrading of future strategic industries.
Specifically, the largest allocation, 8.5 trillion won, will go to the ‘strategic technology’ sector, representing a 29.9% increase from this year. The government plans to secure cutting-edge strategic technologies to foster advanced industries. For national strategic technologies, the goal is to achieve self-reliance in core technologies within five years by generating joint research outcomes between the public and private sectors and actively supporting their growth into advanced industries. In addition, the government aims to secure foundational technologies such as quantum computing and synthetic biology, and to internalize core technologies essential for supply chain and security, such as AI semiconductors and quantum-resistant cryptography.
In the ‘defense industry’ sector, the government will invest 3.9 trillion won, up 25.3%, to replace imported weapons and move away from a technology development system focused on upgrading existing weapons. The plan is to enhance the performance of systems such as the K-9 self-propelled howitzer and Cheongung, and to integrate new technologies like AI and quantum into the defense sector.
For corporate R&D, the focus will not be on addressing short-term difficulties, but rather on systematically supporting capable companies through thorough verification. Accordingly, 3.4 trillion won will be allocated to the ‘SME and venture’ sector, a 39.3% increase from this year. The government will strengthen R&D investments linked to private investment and advance the use of technologies accumulated by universities and government-funded research institutes by companies, aiming to increase commercialization success rates.
The budget for the ‘artificial intelligence (AI)’ sector has been set at 2.3 trillion won, a 106.1% increase. The government will focus on ‘full-stack’ R&D to rapidly secure a competitive edge in the global market by strengthening independent capabilities across the entire AI ecosystem. This will start with intensive investment in next-generation AI technologies, such as artificial general intelligence (AGI) and lightweight, low-power AI, to strengthen independent AI capabilities that can lead global competition. The government will support the acquisition of foundational technologies and foundation models, as well as demonstrations, and will strengthen the AI infrastructure ecosystem. Ultimately, the goal is to connect and integrate AI into all fields-research, industry, and the public sector-to boost productivity and ensure that everyone can use AI reliably.
In addition, to achieve ‘growth for all,’ the government will restore research sites and transition to a sustainable research ecosystem. Investments will include 4 trillion won (+17.1%) for innovation in government-funded research institutes, 3.4 trillion won (+14.6%) for advancing the basic science ecosystem, 2.4 trillion won (+14.2%) for comprehensive disaster safety response, and 1.3 trillion won (+35.0%) for workforce development.
In particular, the system in which researchers at government-funded institutes secure personnel expenses through project acquisition (PBS) will be phased out, and the number of individual basic research projects will be increased to 15,311, surpassing the 2023 level. This is aimed at restoring the weakened research ecosystem.
In the subsequent Q&A session, Director-General Park explained the reason for phasing out the PBS system, stating, “The research periods for the projects entrusted to each government-funded research institute under the PBS system are different. Because of these time differences, it is inevitable that the system will be abolished gradually.”
When asked whether the R&D budget cuts made by the previous administration have been fully restored, he responded, “In terms of the number of research projects, basic research fell from about 14,000 in 2023 to around 13,000 in 2024 and about 11,000 in 2025. This year’s 2026 plan restores the number to 15,311, which is an increase.”
Science and ICT Minister Bae Kyunghoon stated, “This year’s R&D budget proposal is the largest ever, and it has been dramatically expanded not only to restore the research ecosystem but to achieve complete recovery and real growth. Through a stable and predictable R&D investment system, we will work with the science and technology community to establish a sustainable research ecosystem.”
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