- MSIT announced a 2027 budget of 29.6 trillion won, the largest-ever budget and a 24.5% increase from 2026.
- The ministry plans to make strategic investments centered on the “Three Megaprojects + AI” and the “Seven SEED Projects (future growth engines)” to secure national competitiveness.
South Korea’s government approved the budget for fiscal year 2027 at the State Council on Tuesday, September 1. The Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister: Bae Kyung-hoon) announced that a total of 29.6 trillion won has been earmarked for the ministry, a 24.5% increase (5.8 trillion won) from this year’s supplementary budget.
As next year’s budget is effectively the first budget proposal led by the current government, with a focus on delivering tangible results under its policy agenda, MSIT has drawn up the largest-ever budget for AI and science and technology to realize Korea’s future potential based on fiscal space secured through intensive expenditure restructuring.
MSIT’s core investment areas include 1) accelerating AI transformation, 2) securing Next AI and advanced technologies, and 3) supporting balanced growth based on science and technology and digital innovation. The ministry stated that the budget was drawn up to strongly support the government’s recently announced “Three Megaprojects” and “Seven SEED Projects,” with a focus on ensuring that the policy outcomes are evenly shared across all generations, regions, and segments of society.
☞ Details of the 2027 budget can be found from the following pages.
Highlights of the MSIT Budget for 2027
Ⅰ. Total Expenditure
□ (Total Budget) 29.6476 trillion won, an increase of 5.8272 tn won (24.5%) from 2026
ㅇ (R&D) 14.1 tn won (an 18.5% increase from 2026), 36% of the government’s total R&D budget
※ (2025) 9.7 tn won → (2026) 11.9 tn won → (2027) 14.1 tn won
ㅇ (AI) 9.4 tn won (an 84.3% increase from 2026), 57% of the government’s total AI budget
※ (2025) 1.5 tn won → (2026) 5.1 tn won → (2027) 9.4 tn won
□ (Expenditure Restructuring) Secured fiscal space for reinvestment by re-prioritizing investments and consolidating or restructuring projects in line with the government’s policy direction.
□ Focus Areas for Investment
❶ (Grand AI Transformation: 9.4 tn won) Three megaprojects (0.8 tn won), Securing top-tier AI models and related technologies (5.6 tn won), AI service & utilization (1.9 tn won), AI-driven inclusive society (1.2 tn won), etc.
❷ (Securing Advanced Technologies: 12.4 tn won) Seven SEED projects (1.3 tn won), National strategic technology development & commercialization (5.6 tn won), Strengthening the R&D innovation ecosystem (5.2 tn won), etc.
❸ (Balanced Growth: 0.9 tn won) Regional R&D innovation (0.41 tn won), Addressing social problems (0.10 tn won), Making policy outcomes tangible to citizens (0.34 tn won), etc.
Ⅱ. Focus Areas for Investment
1. Accelerating AI Transformation (5.0938 tn won → 9. 4211 tn won)
1) Fully Implementing the Three Megaprojects (298.1 bn won → 795.6 bn won)
ㅇ (AIDC) Fostering upstream and downstream technology and industry ecosystems through demonstration testbeds and package technology development for the localization, demonstration, and export commercialization of key AIDC solutions.
- Securing early reference for domestic solutions through 10MW AIDC testbeds.
▪Strengthening the foundation for AI computing resource utilization (DetailsSupporting AI industry growth based on small data centers): (2026) 9.6 bn won → (2027) 19.6 bn won
ㅇ (Physical AI) Establishing a system for securing and utilizing high-quality (actual and synthetic) data, and developing general-purpose physical AI foundation models to localize, demonstrate, and expand the use of the platform.
- Launching models that can be used in a variety of industrial settings by 2027 and working with Korea Post to demonstrate homegrown physical AI in logistics.
ㅇ (Next-generation Semiconductors) Expanding investment in the development of core
technologies to secure an early lead in the global next-generation semiconductor market that includes ultra-fine and stacked semiconductors, and AI semiconductor.
- Applying homegrown AI semiconductors directly to the products and services of Korean companies to validate their potential for early commercialization and secure reference cases.
2. Securing Top-tier AI Models and Related Technologies (2.6146 tn won → 5.5937 tn won)
ㅇ (Top-tier Sovereign AI Model) Supporting the public and private sectors with large-scale GPUs (10,000 GPUs), data, and talent to develop sovereign AI models that can compete with top-tier AI models.
ㅇ (Next-generation AI Technology Development) Developing ultra-efficient and lightweight AI, on-device technologies, and autonomous agents to overcome the current limitations of AI.
- Developing time-series AI technologies for industrial productivity innovation, trustworthy and controllable AI safety technologies aligned with human intentions, and next-generation general-purpose AI technologies.
- Developing and demonstrating AI-RAN technologies, a key infrastructure for expanding the adoption of high-performance physical AI, and taking the lead in establishing an intelligent national network.
ㅇ (AI Security) Responding to advanced cyber threats, developing security-specialized models and services and systems for detecting AI hacking and enabling autonomous defense, and deploying AI security services for SMEs (Small and Medium-sized Companies).
3) AI Service & Utilization (1.2067 tn won → 1.8611 tn won)
ㅇ (AI for All) Supporting all citizens in gaining easy, cost-free access to general-purpose AI chatbots and public AI agents developed using homegrown AI models.
- Developing and embedding various specialized services on the AI for All platform, and advancing the platform to enable all citizens to develop and use AI agents tailored to their individual needs.
ㅇ (AX) Accelerating regional AX centered on four regional blocks* including Daegyeong, Seonam, Jeonbuk, and Dongnam, while supporting industrial AX in agriculture, healthcare, and energy.
* (Regional AX) Daegyeong (bio and robotics), Seonam (mobility and energy), Jeonbuk (AI factory platform), and Dongnam (precision manufacturing)
- The government will hire AI developers from the private sector for the full-scale operation of the “National AI Service Innovation Promotion Task Force” to drive innovation in AI-based public services and administration.
ㅇ (Science and Technology x AI) Implementing the K-Moonshot Project* and developing foundation models specialized in science and technology such as biotechnology and mathematics to drive AI-based innovation in science and technology.
* (K-Moonshot) The project brings together national science and technology and AI resources, including the National AI for Science Research Center (NAIS) and AI Self-driving Lab (SDL), and undertakes mission-oriented R&D projects in 12 areas, including humanoids, materials, and new drugs.
4) AI-driven Inclusive Society (974.4 bn won → 1.1707 tn won)
ㅇ (Global AI) Establishing a “Global AI Hub” in Korea in collaboration with major international organizations to tackle global challenges such as climate change and food security, while leading international cooperation.
- Establishing AI research hubs in Europe* for joint research in next-generation AI and expanding joint international research on AI and new digital technologies based on the needs of domestic researchers.
* Follow-up measures from President Macron’s visit to Korea for the Korea-France Summit in April 2026 and the Korea-France Summit on the sidelines of the G7 Summit in June 2026.
ㅇ (AI Talent) Expanding support for AI Universities* to innovate AI education and strengthening AI talent cultivation by establishing AX graduate schools based on industry-academia cooperation.
* (AI Universities) (2026) 18 → (2027) 67
- Supporting various forms of tailored AI education for early-career researchers, local youth, and others.
ㅇ (Strengthening AI Capabilities) Establishing the “AI Growth Ladder for All,” an initiative designed to provide full cycle support from AI education on AI for all citizens to service development and demonstration.
- Expanding the operation of the “AI Challenge for All” * to promote AI use among all citizens.
* Working to establish new online challenge-format competitions to improve services and solve a variety of public and social issues.
2. Securing Next AI and Advanced Technologies (10.6925 tn won → 12.3770 tn won)
1) Seven SEED Projects (861.6 bn won → 1.3439 tn won)
ㅇ (Future Energy) Secure technologies for SMRs (Small Modular Reactors), nuclear fusion, and renewable energy at an early stage to address surging power demand driven by AI and achieve carbon neutrality.
※ (SMR) Commercializing light-water SMRs in 2035 and starting construction of non-light-water SMRs in the 2030s.
(Nuclear Fusion) Producing electricity in the 2030s by developing an “innovative Korea nuclear fusion reactor”.
(Renewable Energy) Accelerating the expansion of clean electricity through the commercialization of perovskite tandem cells (efficiency: 35% or higher) and other technologies.
ㅇ (Future Frontier Technologies) Securing core technologies in quantum, advanced biotechnology, and space as next-generation frontier technologies beyond the semiconductor and AI era, while fostering emerging industries.
- (Quantum) Accelerating the development of a full-stack quantum computer led by Korean companies, research on quantum computing applications, and the industrial integration of R&D outcomes through quantum transformation (QX) based on regional clusters.
- (Advanced Biotechnology) Establishing SDL infrastructure operated by AI robots for next-generation drugs, and developing source BCI (Brain-Computer Interface) technologies such as brain-computer interpretation AI.
- (Space) Securing core technologies to establish a Korean LEO (Low Earth Orbit) satellite communication network by 2035.
ㅇ (Ecosystem of Advanced Supply Chain) Securing and advancing source nano and materials technologies to address global supply chain issues and lay the foundation for future industries.
2) National Strategic Technology Development & Commercialization (4.8668 tn won → 5.6408 tn won)
ㅇ (Source Technologies) Strengthening R&D capabilities to secure source technologies in strategic technology areas such as biotechnology, semiconductors, and nuclear power, while leading global technological paradigm.
ㅇ (Government-funded Research Institutes) Shifting the research systems of the government-funded research institutes toward mission-oriented system by continuously expanding strategic research projects (2026: 77 → 2027: 119)
- Increasing the share of labor costs covered by government funding* and improving the research environment by introducing performance-based incentives linked to institutional evaluations.
* Share of labor costs covered by government funding: (2026) 60.3% → (2027) 70.2% → (2030) 100%
** Performance-based incentives linked to institutional evaluations: All employees of government-funded research institutes receiving a Grade A or higher will receive incentives.
ㅇ (Commercialization of R&D Results) Promoting deep tech startups based on public research results by expanding opportunities for young researchers to explore entrepreneurship and introducing new training programs for second-time entrepreneurs.
* Identifying and supporting startup exploration teams: (2026) 246 teams → (2027) around 300 teams
- Introducing investment-based R&D through equity financing (equity acquisition, recovery, and reinvestment), in addition to the existing grant-based approach, to maximize the impact of R&D programs supporting companies (three programs in 2027).
3) Strengthening the R&D Innovation Ecosystem (4.7117 tn won → 5.1636 tn won)
ㅇ (Basic Research) Gradually expanding research opportunities for domestic researchers*, while establishing a growth ladder for early-career and regional researchers** and promoting research diversity.
*Number of Individual Basic Research: (2025) 11,800 → (2026) 15,300 → (2027) 18,000
** Introducing long-term regional research projects (30 bn won) and increasing the budget for basic research (2026: 125.6 bn won → 2027: 226.1 bn won)
ㅇ (Science and Technology Talent) Establishing and expanding gifted schools and research-oriented universities, and expanding scholarships for science and engineering students to support the identification and development of outstanding talent.
* (Gifted Schools) Establishing new gifted schools affiliated with Korea’s science and technology institutes (Chungbuk and Gwangju) and converting around three existing schools into gifted schools.
** Expanding scholarship support with a goal of supporting 10,000 students by 2030 (2026: 2,920 students → 2027: 5,140 students).
- Expanding colleges of AI at science and technology institutes (KAIST → all four science and technology institutes) to nurture advanced AI talent and industrial talent, and establishing and operating joint industry-academia AX research centers.
- Expanding the selection and support of (leader-level and next-generation) scientists and engineers as national asset.
*(National Scientists and Engineers) (2026) 20 leader-level scientists → (2027) 40 leader-level and 200 next-generation scientists.
ㅇ (International Cooperation) Strengthening the foundation for international cooperation by pursuing strategic research collaboration with leading countries in science and technology including through the U.S. Genesis Mission, and expanding support to enhance universities’ research security capabilities*
* Number of universities that applied for and were selected for MSIT’s project to strengthen research security capabilities: (2026) 8 → (2027) 16
3. Supporting Balanced Growth Based on Science, Technology, and Digital Innovation (743.4 bn won → 853.7 bn won)
ㅇ (Regional R&D Innovation) Expanding region-driven R&D based on regional industries and capabilities, and strengthening the role of regional hubs of INNOPOLIS and support for corporate R&D centers.
ㅇ (Resolving Social Issues) Increasing investment to address social issues closely related to people’s daily lives such as disasters, drugs, cyber threats, and public safety
▪Supporting the field application of disaster response technologies using professional engineers (R&D): (2026) 2.5 bn won → (2027) 5.1 bn won
ㅇ (Tangible Results to the Public) Providing public science engagement services* through national and public science museums, and expanding the development and distribution of information and communications devices, such as OCR (Optical Character Recognition) and AAC (Augmentative and Alternative Communication), for vulnerable groups.
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.