◇ The Ministry of Science and ICT (MSIT) has announced a record-high budget of KRW 19 trillion for 2025.
- The 2025 R&D budget represents a 16.1% increase compared to 2024, reaching KRW 9.7 trillion.
- Key investments will focus on pioneering R&D, AI and digital innovation, core talent and basic research, and strategic international cooperation.
◇ The government's total R&D budget for 2025 will rise by 11.8% compared to 2024, amounting to KRW 29.7 trillion.
The Ministry of Science and ICT (MSIT), led by Minister Yoo Sang-im, announced that the total budget for the ministry, as outlined in the 2025 government budget and fund management plan, has been set at KRW 19 trillion. This marks a 5.9% increase from the KRW 17.9 trillion allocated in 2024.
Since last year, the MSIT has been working to eliminate accumulated inefficiencies in R&D and improve outdated regulations. Efforts have included abolishing preliminary feasibility studies for R&D projects to allow for faster responses to technological changes, introducing support systems for innovative and ambitious R&D, and pushing for improvements in international R&D cooperation frameworks.
For this overhaul of the R&D system, the MSIT has allocated KRW 9.7 trillion for R&D in 2025, a 16.1% increase compared to the KRW 8.4 trillion in 2024. This figure surpasses the KRW 9.1 trillion allocated in 2023 before any budget cuts, marking a 6.5% increase. This strategic expansion of investment is not just a restoration to previous budget levels but a targeted increase to accelerate the nation's future growth through a shift to pioneering R&D.
[MSIT's Key Investment Areas]
In 2025, the MSIT’s primary focus areas for investment, based on the restructured R&D system, are as follows:
1. Supporting Pioneering R&D:
KRW 3.64 trillion in 2024 → KRW 4.32 trillion in 2025
To transition from a catch-up strategy to a pioneering R&D approach, the MSIT will allocate KRW 4.32 trillion, or 44% of its 2025 R&D budget, to this area. The primary focus will be on securing international leadership in three key “game-changing” technologies: artificial intelligence (AI) and semiconductors, advanced biotechnology, and quantum technology.
In the AI field, efforts will focus on overcoming the limitations of generative AI by developing next-generation technologies and supporting innovations across the AI-semiconductor value chain. In biotechnology, the ministry will back innovations in gene regulation, gene editing, new drug development, and refractory cancer diagnostics, as well as the establishment of biotech foundries. For quantum technology, initiatives will include promoting mission-oriented projects, securing leading technologies based on international collaborations, and commercializing quantum sensors.
Development of Pioneering AI-Semiconductor-Based Data Center Technologies:
KRW 7.5 billion in 2024 → KRW 10 billion in 2025
Development of Biotechnology and Medical Technology:
KRW 304.3 billion in 2024 → KRW 368.4 billion in 2025
Development and Commercialization of Quantum Sensor Technology:
KRW 7.7 billion in 2024 → KRW 13.8 billion in 2025
Development of Cloud-based Resource Sharing Technologies (K-Cloud) Using AI Semiconductors:
KRW 37 billion in 2025 (new)
Flagship Quantum Science and Technology Projects:
KRW 25.2 billion in 2025 (new)
Additionally, investments will be expanded in "innovative and ambitious R&D" projects. These are high-risk, high-reward initiatives that, although they have a high possibility of failure, have the potential to create significant breakthroughs if successful. The ministry plans to break away from the traditional management system and focus on supporting projects that are driven by responsible project managers who define challenging problems and pursue innovative approaches.
Breakthrough R&D Projects:
KRW 10 billion in 2024 → KRW 11.7 billion in 2025
Development of Pioneering Digital Innovation Technologies:
KRW 10 billion in 2024 → KRW 11.6 billion in 2025
Innovative Small Modular Reactors:
KRW 27.4 billion in 2024 → KRW 53 billion in 2025
Development of Van der Waals Materials and Process Technology for ULSI Semiconductors:
KRW 4 billion in 2025 (new)
The ministry will also continue investing in key national strategic sectors such as next-generation nuclear power, advanced mobility, and hydrogen to secure technological leadership. Investments will also be increased for future energy sources, including nuclear fusion and renewable energy.
Development of Key Technologies for Safe Storage and Disposal of Spent Nuclear Fuel:
KRW 19.4 billion in 2024 → KRW 21.4 billion in 2025
Hydrogen Technology Independence Project:
KRW 3.4 billion in 2024 → KRW 10.3 billion in 2025
Development of Key Technologies for Carbon-Free Energy:
KRW 5.7 billion in 2025 (new)
A budget of KRW 183.3 billion, a significant 83% increase from 2024, will be allocated to government-funded research institutes to support “Global Top” strategic research groups. This group will break down barriers between research institutes and play a pivotal role in leading R&D. Additionally, the MSIT will strengthen interdisciplinary research efforts among two or more research institutes to develop technologies that directly benefit the public, such as urban flood response technologies and building safety inspection systems.
Support for “Global Top” Strategic Research Groups:
KRW 100 billion in 2024 → KRW 183.3 billion in 2025
Development of Urban Flood Response Technology (Joint Project of KICT KRRI, KIGAM and ETRI):
KRW 8.4 billion in 2025 (new)
Development of Vaccines and Therapeutics for Emerging Infectious Diseases (Joint Project of KRIBB and KRICT):
KRW 8 billion in 2025 (new)
Upcycling of Food Waste to Polymer Resources (Joint Project of KFRI, WIKIM, and KIOM)
KRW 4 billion in 2025 (new)
Digitalization of Safety Inspections for Buildings and Bridges (Joint Project of KICT and KRISS):
KRW 6.8 billion in 2025 (new)
Development of Ultra-High-Density Semiconductor Stacking Technology (Joint Project of KITECH and KIMM)
KRW 6.4 billion in 2025 (new)
2. AI and Digital Innovation:
KRW 0.84 trillion in 2024 → KRW 0.88 trillion in 2025
The MSIT plans to boost productivity across industries and create quality jobs by expanding the use of artificial intelligence (AI) throughout society, ultimately improving the quality of life for citizens. Investments will be directed toward applying AI to industries such as manufacturing, finance, and logistics to create new markets, as well as identifying and commercializing AI-convergence services in collaboration with other government ministries. As a follow-up to the AI Seoul Summit 2024, the MSIT will expand support for leading global initiatives such as establishing AI safety research centers to play a pivotal role in shaping the international AI and digital order.
Support for AI Semiconductor Demonstration:
KRW 18.8 billion in 2024 → KRW 24.4 billion in 2025
K-CareNetwork Based on Digital Innovation Technology:
KRW 4 billion in 2024 → KRW 6 billion in 2025
Establishing a Foundation for Digital Order and Supporting International Expansion (including the Operation of the AI Safety Research Center):
KRW 3.8 billion in 2024 → KRW 5.8 billion in 2025
AI Innovation Fund:
KRW 45 billion in 2025 (new)
Support for Sustainable Data Center Industry:
KRW 9.5 billion in 2025 (new)
The MSIT will also strengthen investments in creating a safe and inclusive AI and digital environment for citizens. This includes permanently operating digital education centers nationwide and establishing an AI-based intelligent information security system to combat increasingly covert and sophisticated cyber threats.
Promoting Use of Encryption:
KRW 700 million in 2024 → KRW 3.9 billion in 2025
Open-RAN Testbed Establishment:
KRW 1 billion in 2024 → KRW 3.9 billion in 2025
Applying and Expanding Secure Software Supply Chain Management System:
KRW 6 billion in 2025 (new)
3. Fostering Core Talent and Expanding Basic Research:
KRW 3.21 trillion in 2024 → KRW 3.57 trillion in 2025
The MSIT will focus on nurturing talent to lead Korea’s future by creating a stable research environment and enhancing AI and digital education. This includes supporting core talent in emerging technologies. In particular, the ministry plans to introduce a stipend program for graduate students in STEM fields, ensuring they can fully dedicate themselves to their research.
Science and Technology Innovation Talent Development:
KRW 52.1 billion in 2024 → KRW 59.9 billion in 2025
ICT Broadcasting Innovation Talent Development:
KRW 105.4 billion in 2024 → KRW 130.4 billion in 2025
Graduate Student Stipend for STEM Fields:
KRW 60 billion in 2025 (new)
Support for AI Fellowship Program:
KRW 6 billion in 2025 (new)
Training for Future International Nuclear Power Specialists:
KRW 2 billion in 2025 (new)
The MSIT will allocate its largest-ever budget for basic research, which serves as the foundation for innovation. New initiatives will support pioneering research in emerging fields, while follow-up studies by high-performing researchers will receive expanded support. Additionally, a new "National Agenda Basic Research" initiative will be introduced, offering strategic "middle-up" support for basic research that aligns with government policies and societal needs.
Support for Individual Basic Research:
KRW 1.6982 trillion in 2024 → KRW 1.9108 trillion in 2025
Support for Collaborative Research Initiatives:
KRW 419.7 billion in 2024 → KRW 430.4 billion in 2025
4. Strengthening Strategic International Cooperation:
KRW 1.13 trillion in 2024 → KRW 1.25 trillion in 2025
To respond to the global competition for technological supremacy and expand Korea's role in the international scientific community, investments in international scientific and technological cooperation will continue to increase. First, international joint research with leading advanced countries will be actively pursued. The scale of ongoing international joint research projects in the three key transformative areas (game-changers) – artificial intelligence, biotechnology, and quantum technology – as well as in the semiconductor and materials sectors, will be expanded. Additionally, new international joint research initiatives will be launched in the field of carbon neutrality. Furthermore, Korea will officially participate in Horizon Europe, the world's largest multilateral research and innovation program, following the successful conclusion of negotiations for associate membership in March this year, and efforts will be made to encourage the participation of Korean researchers.
Digital Biotechnology Development:
KRW 15 billion in 2024 → KRW 28.3 billion in 2025
International Joint Research in Semiconductors and Displays:
KRW 3.41 billion in 2024 → KRW 7.39 billion in 2025
International Joint Research in Digital Innovation Technology:
KRW 2.93 billion in 2024 → KRW 6.46 billion in 2025
AI Research Hub Establishment:
KRW 4 billion in 2024 → KRW 10 billion in 2025
Strengthening International Cooperation in Quantum Technology:
KRW 7.78 billion in 2024 → KRW 16.6 billion in 2025
Connecting Global Young Researchers in Materials Science:
KRW 7.875 billion in 2024 → KRW 15.9 billion in 2025
International C.L.E.A.N. (Climate, Energy, and Environment Action Network):
KRW 4.03 billion in 2025 (new)
The MSIT will also bolster the foundation for international science and technology cooperation. Taking advantage of the Asia-Pacific Economic Cooperation (APEC) summit to be held in South Korea next November, a pilot program supporting exchanges between scientists from countries within the Asia-Pacific region will be launched. The role of international science and technology cooperation hubs will be enhanced by providing support for overseas information gathering and networking. Furthermore, collaboration with the U.S. National Science Foundation (NSF) and research development zones in Korea will be expanded to support overseas expansion for researchers and tech companies.
Building Foundations for International Cooperation:
KRW 24 billion in 2024 → KRW 38.1 billion in 2025
APEC Scientist Exchange Expansion:
KRW 2.55 billion in 2025 (new)
International Boost-Up Project:
KRW 5 billion in 2025 (new)
[2025 Government R&D Budget: KRW 29.7 Trillion]
Meanwhile, the total government R&D budget for 2025 will amount to KRW 29.7 trillion, an 11.8% increase from 2024 (KRW 26.5 trillion), marking a record high. Given that the overall government expenditure is expected to rise by only 3.2%, this indicates a significant increase in the R&D sector compared to other fields.
The key areas for the government's R&D investments in 2025 are as follows:
1. Driving National Innovation through Game-Changing Technologies and Innovative and Ambitious R&D
The government will expand strategic investments to achieve G3 status by 2030 in three key game-changing technologies: AI-semiconductors, advanced biotechnology, and quantum technology. Additionally, KRW 1 trillion will be allocated to support innovative and ambitious R&D activities, fostering a dynamic research environment.
Three Game-Changing Technologies:
KRW 2.7 trillion in 2024 → KRW 3.5 trillion in 2025
Innovative and Ambitious R&D:
KRW 0.7 trillion in 2024 → KRW 1 trillion in 2025
2. Building a Pioneering R&D Ecosystem
The government plans to deliver unprecedented support for basic research, fostering a diverse and resilient domestic R&D ecosystem. A new stipend program will be introduced to create a stable research environment for full-time graduate students, while international cooperation will be enhanced through participation in global initiatives like Horizon Europe.
Basic Research:
KRW 2.6 trillion in 2024 → KRW 2.9 trillion in 2025
Talent Development:
KRW 0.8 trillion in 2024 → KRW 1 trillion in 2025
International R&D:
KRW 1.8 trillion in 2024 → KRW 2.2 trillion in 2025
3. Supporting Cutting-Edge Technologies for Dynamic Economic Growth
The government will increase investments in technology development to secure a 'super gap' in key advanced industries, such as semiconductors, displays, and secondary batteries, while also supporting emerging growth sectors like space exploration and next-generation nuclear power. Corporate R&D will be supported in scaling up technologies and commercializing core technologies. Additionally, by diversifying funding methods, such as integrating investments with loans, the government aims to accelerate innovation in companies with strong capabilities and help them achieve self-sustainability.
Cutting-Edge Technologies:
KRW 2 trillion in 2024 → KRW 2.4 trillion in 2025
Technology Sovereignty and New Growth Engine:
KRW 2.9 trillion in 2024 → KRW 3.3 trillion in 2025
Corporate Innovation Ladder:
KRW 1.3 trillion in 2024 → KRW 1.4 trillion in 2025
4. Science and Technology for National Safety
In the defense sector, investments will focus on enhancing the competitiveness of defense technologies and strengthening collaborations between civilian and military sectors. The government will also enhance R&D for disaster response and safety to address emerging threats, such as digital crimes and large-scale industrial accidents.
Defense:
KRW 2.9 trillion in 2024 → KRW 3.1 trillion in 2025
Disaster-response and Safety:
KRW 1.9 trillion in 2024 → KRW 2.1 trillion in 2025
The 2025 budget proposal, including the fund management plan, was approved by the Cabinet on August 27th and will be sent to the National Assembly on September 2nd. During the regular National Assembly session, the standing committees will conduct a preliminary review, followed by a full-scale review by the Budget Committee. The final budget will be determined after amendments and a vote in the plenary session.
Minister Yoo Sang-im stated, "The 2025 budget proposal for the MSIT prioritizes key investments in areas critical for the transition to pioneering R&D, building on last year’s structural improvements. We will make bold investments in promising technologies that are challenging for the private sector to develop, and nurture the core talent that is the foundation of national competitiveness. Next year will mark the start of Korea's leap into the future."
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.
Plaese refer to the attached PDF.