- Strategic investment to fully restore the research ecosystem and achieve genuine growth
- Transition to an R&D investment framework focused on technology-driven and inclusive growth
The Ministry of Science and ICT (MSIT, Minister Bae Kyunghoon) announced that, at the plenary session of the Presidential Advisory Council on Science and Technology (PACST, chaired by the President) held at the Office of the President on Friday, August 22, the Council deliberated and approved the "2026 National R&D Program Budget Allocation and Coordination Plan" (commonly known as the Lee Jae Myung Government K-R&D Initiative).
The 2026 government R&D budget is the first under the new administration that prioritizes popular sovereignty. Reflecting the government's commitment to realize “genuine growth” through structural reform and innovation, it has been set at a record-high KRW 35.3 trillion. Of this, KRW 30.1 trillion pertains to major R&D projects overseen by the PACST. The approved budget allocation and coordination plan for major R&D will be submitted to the National Assembly alongside general R&D following the government’s budget formulation process.
※ Note: Government R&D is composed of two main categories. Major R&D is allocated and coordinated by MSIT’s Vice Minister for Science, Technology and Innovation, then deliberated and approved by the PACST before final budget formulation by the Ministry of Economy and Finance (MOEF). General R&D, on the other hand, is directly reviewed and formulated by MOEF.
< Snapshot of Government R&D Investment in 2026 >
Category202420252026 (proposal)
Government R&D (total)KRW 26.5 trillion
(–9.4%)KRW 29.6 trillion
(+11.5%)KRW 35.3 trillion
(+19.3%)
Major R&DKRW 21.9 trillion
(–11.3%)KRW 24.8 trillion
(+13.2%)KRW 30.1 trillion
(+21.4%)
The 2026 major R&D budget is structured around two pillars: “technology-led growth” and “inclusive growth.” The government will decisively invest in R&D, the core driver of technology-led growth, to support a leap in productivity and foster the cultivation and advancement of future strategic industries. Simultaneously, it will restore the research environment and transition toward a sustainable research ecosystem to ensure inclusive growth. The key investment areas confirmed by the PACST are as follows:
I. Technology-Led Growth Driving a Major Economic Leap
❶ Artificial Intelligence — Economy-wide and social transformation via AI (KRW 2.3 trillion, +106.1%)
To swiftly gain a competitive advantage in global AI, Korea will avoid fragmented technology developments and focus on “full-stack” R&D that strengthens independent capabilities across the AI ecosystem. Investment will center on next-generation AI technologies, including Artificial General Intelligence (AGI) and lightweight, low-power AI, while supporting core technologies and foundation models to establish global leadership in physical AI.
Korea will build a self-reliant AI ecosystem by enhancing infrastructure from R&D to service deployment. This includes developing high-performance interconnects between large and medium-sized data centers to realize an "AI expressway," consolidating GPU resources through shared-use frameworks, and supporting the localization of cloud core technologies based on AI semiconductors, such as NPUs and PIM, for efficient GPU management.
Finally, the plan accelerates Korea's transition to an “AI-enabled society” by integrating AI across research, industry, and the public sector to boost productivity and ensure safe, reliable AI use for all citizens. This encompasses the development of domain-specific AI models, widespread AI embedding in industry, and AI adoption in public administration, healthcare, defense, and other sectors.
❷ Energy — Building a renewable energy-centered energy aorta (KRW 2.6 trillion, +19.1%)
Shifting beyond component-level R&D and small-scale demonstrations, the energy sector will focus on core-system localization and commercial-scale verification to grow renewables as a next-generation flagship industry.
Efforts include supporting early demonstration and localization of ultra-high-efficiency solar cells and large-scale, high-output wind systems. The intermittency of renewable energy will be balanced by AI-powered energy management systems (EMS), alongside the development of next-generation power grids and long-duration energy storage (ESS) to establish an intelligent, distributed “energy expressway.”
The government will also promote the full clean hydrogen value chain, from production to utilization, and continue investing in Small Modular Reactor (SMR) core technologies to meet rising power demands arising from AI transformation. In addition, industrial process innovations aimed at low-carbon, low-consumption energy will be supported, along with key carbon capture, utilization, and storage (CCUS) technologies.
❸ Strategic Technologies — Securing super-gap leadership to nurture advanced industries (KRW 8.5 trillion, +29.9%)
Targeting technology independence within five years, joint public-private efforts will drive research outcomes and industrial growth, positioning strategic technologies as leaders in technology-driven growth.
Priorities include leading emerging fields such as quantum computing and synthetic biology, internalizing supply chain–critical technologies for export competitiveness and security like AI semiconductors and quantum-resistant cryptography, and rapidly commercializing technologies with high technology readiness levels, such as autonomous driving and humanoid robots.
❹ Defense Industry — Accelerating defense industry development through S&T innovation (KRW 3.9 trillion, +25.3%)
Moving beyond reliance on imported weapons and incremental upgrades, defense R&D will integrate cutting-edge technologies into national defense systems to create new growth engines.
Upgrades on flagship systems such as the K9 self-propelled howitzer and the Cheongung air defense system will push the defense industry as a strategic, export-driven engine of national growth. Integration of AI, quantum, and other emerging technologies in defense will be intensified, while nurturing defense-sector SMEs and startups. Comprehensive deterrence will be bolstered across land, sea, air, space, and cyber domains, supported by investments in electronic warfare, KF-21 next-generation fighter development, and pilot research for domestic advanced aero-engines.
❺ SMEs and Startups — Opening new growth paths through innovation (KRW 3.4 trillion, +39.3%)
Corporate R&D funding will transition from short-term problem solving to robust, validated support focused on capable firms and technologies.
The government will enhance private-investment-linked R&D, providing follow-up support for firms and technologies vetted through market due diligence. Concurrently, ministries will discover and pre-screen promising enterprises and technologies within their sectors, supporting selected winners through incubation-oriented R&D support based on competition.
In addition, technologies developed by universities and government-funded research institutes will be upgraded for industrial use, and tailored support will be extended from startup formation to growth. Innovation procurement, connecting public and private demand with development and purchasing processes, will be expanded to help firms establish critical early track records.
II. Inclusive Growth through Research Ecosystem Recovery
❻ Basic Research — Advancing a creative and autonomous basic science ecosystem (KRW 3.4 trillion, +14.6%)
Support for basic research will be significantly increased to build a robust research ecosystem grounded in diversity, autonomy, and stability. The number of funded individual research projects will be expanded to at least the 2023 level* to rapidly restore the weakened ecosystem. The previously discontinued basic research track will be reinstated**, and eligibility will be broadened to include non-tenure-track researchers.
*Number of projects: 14,499 (2023) → 13,080 (2024) → 11,827 (2025) → 15,311 (2026)
**Projected new awards include 2,000 tenure-track grants (under KRW 100 million per year for 5 years) and 790 non-tenure-track grants (around KRW 60 million per year for 3 years).
Support types will be integrated and simplified, and minimum project durations will be extended to reduce pressures for short-term output, enhancing research autonomy, continuity, and stability. Early-career project durations will extend from 1 to 3 years (2+1) and core projects from 3 to 5 years (3+2), with mid-term reviews permitting research adjustments.
❼ Talent Development — Establishing a premier global talent powerhouse (KRW 1.3 trillion, +35.0%)
The government will concentrate investment on attracting, nurturing, and retaining top science and technology talent domestically and internationally.
This includes improving working conditions and support so elite talent can focus on research without concerns, empowering master's and doctoral candidates to grow into world-class leaders, and strengthening industry-demand-driven training and industry-academia-research collaborations in advanced sectors.
The Brain to Korea talent attraction initiative will be vigorously supported to recruit world-class experts and promising early-career researchers in strategic technologies, providing competitive salaries, stable research funding, and settlement support to foster successful long-term careers in Korea.
❽ Government-Funded Research Institutes (GRIs) — Innovation toward national mission focus (KRW 4.0 trillion, +17.1%)
GRIs will focus on mission-oriented, mid- to long-term, large-scale research to maximize outcomes.
The Project-Based System (PBS), whereby researchers secure salaries via project awards, will be gradually phased out to allow researchers to focus exclusively on science. Expiring government-commissioned projects will be reallocated as institutional grants through 2030. In 2026, a strategic research program worth approximately KRW 0.5 trillion will be introduced, accompanied by a new Research Excellence Incentives program to reward outstanding achievements and enhance pride and stability among researchers.
❾ Regional Growth — Enhancing local economic vitality through science and technology innovation (KRW 1.1 trillion, +54.8%)
In pursuit of balanced growth benefiting all, the government will support regionally led, autonomous R&D tailored to local strengths, characteristics, and capabilities.
Budgets will be allocated by region to empower local entities in planning and managing R&D, focusing on demand-driven specialized industries and technologies. Industry-academia-research collaboration will be invigorated to foster regional innovation, with innovation clusters amplifying research outcomes to stimulate local economies.
Large-scale AI transformation (AX) R&D tied to regional industrial specializations will invigorate local economies. This will be supported by the establishment of major research facilities and equipment in the regions, the expansion of infrastructure to nurture specialized industries, and the consolidation of generic and basic research equipment to strengthen self-sustaining regional research capacity.
❿ Disaster and Safety Management — A state-led, comprehensive response (KRW 2.4 trillion, +14.2%)
Korea will enhance national disaster response capabilities grounded in science and technology to accelerate the realization of “a society that prioritizes life and safety”
Advanced technologies such as AI and drones will be leveraged to strengthen end-to-end capabilities spanning monitoring, prevention, response, and recovery. Priority will be given to inter-ministerial joint projects involving leading research institutes to address the increasing frequency and scale of complex disasters.
Technology gaps in areas such as industrial safety and disaster response will be identified and addressed with timely R&D. The real-world applicability of research outcomes will be strengthened through Living Labs and linkage with procurement processes.
Beyond these focus areas, the government will improve investment efficiency by clarifying the division of roles among ministries, eliminating overlaps through better coordination of outcomes, and expanding collaborative synergies. Small projects will be integrated and scaled up to strengthen performance management, and after budget formulation, expert committees will continue monitoring and provide targeted consulting for projects that need additional planning or adjustment—ensuring effective use of R&D funds at the research front lines.
Minister Bae Kyunghoon said, “This unprecedented R&D budget, set at a record high, has been designed to fully restore the research ecosystem and drive genuine growth. Through a stable and predictable investment system, we will collaborate closely with the science and technology community to establish a sustainable research ecosystem.”
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.