MSIT budget for 2024 confirmed at KRW 18.6 trillion

Government R&D budget at 26.5 trillion won, focus on the enhanced support for emerging researchers and more

1.8 trillion won reserved for global R&D to secure world-leading technological capabilities

Budget for basic research increased by 207.8 billion won, research institutes by 38.8 billion won to remove burdens on students and researchers

2024 budget for MSIT increased by 272.6 billion won compared to the initial government proposal, investments to focus around securing competitive edge in super-gap technologies, etc.



The Ministry of Science and ICT (Minister Lee Jong Ho, hereinafter referred to as "MSIT") announced that MSIT's "2024 Budget and Fund Administration Plan," totaling 18 trillion and 562.5 billion, was confirmed in conclusion through parliamentary approval at the National Assembly plenary session on December 21st.



The confirmed budget for MSIT has increased by 272.6 billion won compared to the initially proposed budget of 18 trillion 289.9 billion won. MSIT plans to focus its 2024 budget investments around five major areas: 1) Securing core technologies of strategical value, 2) Supporting international cooperation and overseas expansion, 3) Cultivating science, technology, and digital talents, 4) Promoting digital diffusion, and 5) Enhancing capabilities of research institutes and regional innovation.



2024 budget for the Ministry of Science and ICT, by 5 major investment areas



1. Securing core technologies of strategical value: MSIT will invest 2 trillion 413.1 billion won to maintain a super-gap technological advantage in key fields, and to secure next generation and original technologies in the fields of 12 Critical and Emerging Technologies.



2. Supporting international cooperation and overseas expansion: MSIT will support 1 trillion and 144.5 billion won to open up the window of opportunity for world-class research, nurturing global digital talents, and facilitating the overseas market breakthrough by domestic digital businesses.



3. Cultivating science, technology and digital talents: MSIT will provide 2 trillion 842.7 billion won to support the growth of emerging researchers, and to produce core research personnel in Critical and Emerging Technologies and digital talents ready for practice.



4. Promoting digital diffusion: MSIT will allocate 1 trillion 304.6 billion won to integrate hyperscale AI into specialized fields such as law, healthcare, and public sectors, allowing for all citizens to enjoy benefits garnered by AI in their daily lives.



5. Enhancing capabilities of research institutes and regional innovation: MSIT will support 4 trillion 381.3 billion won in the commercialization of research outcomes and creation of new businesses, in order to enhance the innovation functionality of research institutes and local organizations.



2024 budget for government R&D across all ministries (26.5 trillion won)



The total government research and development (R&D) budget, including those administered under MSIT, has been finalized at 26.5 trillion won.



This represents an overall increase of 621.7 billion won compared to the initial government proposal. The majority of this additional funding is allocated to address concerns regarding uncertainty in employment circulating within the research community, particularly for students and employees in small and medium-sized enterprises. Moreover, funds for next generation and original technology research, as well as the establishment and operational costs for state-of-the-art research equipment are also boosted.



The budget for global R&D, which had been the primary point of contention during the parliamentary review process, has largely been confirmed in accordance with the version proposed by the government. It is anticipated that this decision will propel forward the pursuit of world-class R&D.



Summary of the increased R&D budget approved by the National Assembly is as follows.



First, support for basic research, including scholarships and fellowships, has increased by 207.8 billion won.



In consideration of worrisome opinions raised in the field that the continuity of research projects could be hindered, the budget for ongoing projects has been increased by 143.0 billion won. A new program called "creative research" has also been established and allocated with 9.8 billion won to assist smooth execution of small-scale research.



As a result, the scale of the budget for ongoing projects, which had decreased by approximately 25% compared to the previous year according to the initial government proposal, was adjusted to a decrease of around 10%. This measure is aimed at significantly reducing the negative expectations surrounding workforce restructuring and fund cutbacks in the research field.



Next, a new group research program exclusively for postdoctoral researchers (Post Doc) has been established with a budget of 45.0 billion won. This program aims to encourage young and promising researchers to conduct challenging research, enabling them to grow into global talents.



Furthermore, additional budget of 10.0 billion won was reserved to support graduate students. In detail, a new scholarship program called the "Presidential Science Scholarship for Graduate Students" will be introduced to select about 100 outstanding master's program students and doctoral candidates in science and engineering, and graduate-level fellowships will be expanded to provide fiscal support for 900 students in their research activities.



Through these adjustments, the budget for researcher-led basic research, with the purpose to enhance the certainty of working conditions for researchers, has been finalized at 2.63 trillion won, an increase of 40.0 billion won compared to the previous year.

* (Researcher-led basic research) 2.59 trillion won in 2023 → 2.63 trillion won in 2024 (1.7%↑)



The government plans to actively recommend the utilization of accumulated funds for student personnel expenses that universities and other institutes already possess, along with the financial expansion of budgets for stable research operation in universities. In addition, there are plans to make institutional improvements by extending the outreach of the integrated management system for student personnel expenses, which is currently implemented through 14 agencies, so that to guarantee student personnel expenses are paid above a certain level in educational institutes.



Second, a budget of 38.8 billion won has been added to ensure reliable research support for government-funded research institutes.



To alleviate the burden of excessive contracting responsibilities on these institutes, and to create an environment dedicated to research activities, there has been an increase in funding centered around personnel expenses for institutes with a low proportion of government contribution.



Meanwhile, the budget allocated to the "Global TOP Strategic Research Teams" is expected to be approved and executed by the National Assembly at 1 trillion won as earmarked in the government proposal. The goal of this initiative is to remove institutional barriers and enhance innovative capabilities of research institutions.



Third, corporate R&D funding has been strengthened with a budget increase of 178.2 billion won compared to the government proposal.



Initially, the portion for corporate R&D was substantially reduced in the government plan in order to minimize the subsidy-like nature of such funding. However, for projects with potential drawbacks, such as the occurrence of sunk costs and uncertainty in employment, the government decided to provide temporary support for personnel expenses until project completion.



Fourth, 33.6 billion won was allocated in addition for the development of next generation and original technologies, insofar as to reflect situational changes after the government proposal was submitted to the National Assembly.



Mainly affected were specific areas with strategic importance. For instance, the lunar lander development project (4.0 billion won), which passed the preliminary feasibility study in last October, next generation network (6G) industrial and technological development project (6.0 billion won), next generation mobility (K-UAM) technology development project, as well as projects in the field of nuclear power safety and components received increased budgets.



Fifth, the budget for the establishment and operation of state-of-the-art research equipment has been expanded by 43.4 billion won.



This expansion focuses on additional budget allocations for the construction and operation of large-scale research equipment, such as enhanced supercomputing infrastructure and service system (4.0 billion won), multipurpose synchrotron radiation source (11.0 billion won), rare isotope accelerator (5.5 billion won), new research reactors for export (11.0 billion won), and KSTAR (3.5 billion won).



Minister Lee Jong Ho stated that "The 2024 budget focuses on creating an environment for research that challenges the world's best by strengthening global R&D and support for emerging researchers. Doing so, we aim to secure South Korea's competitive edge in the international stage and growth engine for the next generation amidst the global competition for technological dominance."



He further stated, "After submitting the budget proposal, the government attentively listened to the voices coming from the research community to build more reliable environment for researchers, including students. With the budget confirmed today, we will continue to ensure that students and researchers face no difficulty in their endeavors, and persist with efforts for institutional improvements."





For further information, please contact the Public Relations Division (Phone: +82-44-202-4034, E-mail: msitmedia@korea.kr) of the Ministry of Science and ICT.



Please refer to the attached PDF.