R&D Budget Formulation to Eliminate Departmental Barriers

Establishment of a Permanent Council Between the Ministry of Planning and Budget and the Ministry of Science and ICT

The Ministry of Planning and Budget and the Ministry of Science and ICT are establishing a collaborative framework to break down departmental silos in the process of allocating the national research and development (R&D) budget. A new "R&D Budget Council" will be created for cooperation between the two ministries, and the process will be improved so that the Ministry of Planning and Budget can participate in the preparation of key R&D budget allocation and adjustment plans by the Ministry of Science and ICT.

According to both ministries on January 12, they have agreed to further advance their collaboration by strengthening prior consultations and joint reviews during the R&D budget formulation process. With the establishment of the Ministry of Planning and Budget, the aim is to overhaul the overall structure of R&D budget allocation.

Currently, out of the total 2026 R&D budget of 35.5 trillion won, 30.5 trillion won-or 85.3%-is designated as the key R&D budget. The Science and Technology Innovation Office of the Ministry of Science and ICT prepares the allocation and adjustment plans for this portion, and the Ministry of Planning and Budget finalizes the budget based on these plans. While this approach allows for both technical review and fiscal analysis, there have been criticisms that the division of roles between ministries has led to a breakdown in communication.

To address this, the two ministries will first establish a new permanent council at the director-general level, called the "R&D Budget Council." This council will meet regularly each month to broadly discuss the government's key R&D investment directions, measures to improve spending efficiency, and the review of new projects. For major issues, vice-ministerial level discussions will also be held between the Vice Minister of Planning and Budget and the Head of the Science and Technology Innovation Office.

Mutual participation in the budget formulation process will also be expanded. The Ministry of Planning and Budget will now participate in the process where the Science and Technology Innovation Office prepares the main R&D budget allocation and adjustment plans. Specifically, the Ministry of Planning and Budget will take part in the in-depth review process conducted by the expert committee under the National Science and Technology Advisory Council, thereby improving its understanding of project details and strategic necessity. Conversely, the Ministry of Science and ICT's opinions will be more thoroughly reflected in the budget adjustment process led by the Ministry of Planning and Budget, by strengthening the consultation procedures. When the Ministry of Planning and Budget adjusts the main R&D allocation and adjustment plans submitted through the advisory council, it plans to discuss these with the Ministry of Science and ICT in advance through the newly established permanent council to ensure their opinions are incorporated.

The management system for new R&D projects will also be revised. In the past, there have been cases where new projects not submitted during the review stage by the Ministry of Science and ICT were belatedly requested during the budget formulation stage by the Ministry of Planning and Budget. Going forward, requests for new projects not reviewed during the allocation and adjustment planning process by the Science and Technology Innovation Office will, in principle, be restricted. However, exceptions will be made for issues of national importance or urgency, but even in these cases, the appropriate scale and other aspects of the project will be subject to review by the advisory council. These improvements will be implemented immediately, starting with the formulation of the 2027 budget.