The South Korean government is allocating a record-high 35.5 trillion KRW (approximately 26 billion USD) for Research and Development (R&D) in the current fiscal year, aiming to establish the nation as a technological powerhouse by focusing on future growth engines. This strategic investment was announced during the '2026 Government R&D Business Joint Briefing of Ministries,' hosted by the Ministry of Science and ICT (MSIT) in collaboration with 18 central administrative agencies at KAIST from February 19th to 21st. The briefing, designed to inform industry, academia, and research (산·학·연) stakeholders about R&D initiatives, anticipates approximately 30,000 participants.

The expanded R&D budget is strategically concentrated on key technological domains: Artificial Intelligence (AI), semiconductors, quantum computing, advanced biotechnology, and aerospace. Significant emphasis is also placed on expanding basic research, nurturing scientific talent, and fostering balanced regional development. Notably, investment in AI is substantially increased by 117% year-over-year, totaling 2.4 trillion KRW, to accelerate the realization of an 'AI-centric society' (AI 기본사회). Funding for engineering and science talent development is augmented by 35% to 1.3 trillion KRW, specifically earmarked for initiatives such as improving conditions for postdoctoral researchers at the four national science and technology institutes (KAIST-type universities).

Budget allocation by government entity includes: MSIT leading with 11.9 trillion KRW, followed by the Defense Acquisition Program Administration (DAPA) with 5.8 trillion KRW, the Ministry of Trade, Industry and Energy (MOTIE) with 5.5 trillion KRW, and the Ministry of SMEs and Startups (MSS) with 2.2 trillion KRW. The newly established Korea Aerospace Administration (KASA) will invest 949.5 billion KRW to commence full-scale R&D.

Concurrent with budget expansion, significant institutional reforms are being implemented to enhance research efficiency and autonomy. A core methodological change involves the abolition of preliminary feasibility studies (예비타당성조사, 예타) for R&D projects. This measure aims to streamline the project approval process, reducing bureaucratic delays and accelerating the initiation of critical research. Furthermore, the Project-Based System (PBS), a core operational framework for government-funded research institutes (정부출연연구기관), will be phased out. This reform seeks to transition research funding away from a project-dependent structure to provide researchers with greater autonomy and stability. The objective is to foster a 'research-immersive environment' (연구 몰입 환경 조성) by reducing pressure to secure short-term projects, introducing new researcher incentives (연구자 인센티브 신설), and ensuring stable financial support, with 4 trillion KRW allocated to this systemic overhaul.

Park In-kyu, Head of the Office of Science, Technology and Innovation, emphasized that the increased budget will be directed towards technology-led growth, restoring the basic research ecosystem, and promoting co-growth with industries and regions. He underscored the commitment to bold regulatory innovation, including the abolition of PBS and 예타, based on feedback from the research community. The briefing schedule features MSIT on the first day, followed by the Ministry of Education, MSS, and MOTIE on the second day, and the Ministry of National Defense, Ministry of Environment, and Ministry of Culture, Sports and Tourism on the third day. Related materials and videos are accessible via the official website and MSIT's YouTube channel.