- First MSIT budget under the Lee Jae Myung administration totals KRW 23.7 trillion, up 12.9% from this year’s budget; R&D budget set at KRW 11.8 trillion, up 21.6%

- Four investment priorities: ▲ nationwide AI transformation (AX), ▲ NEXT strategic technologies, ▲ a robust R&D ecosystem, and ▲ balanced growth through science, technology and digital innovation.

The Ministry of Science and ICT (MSIT, Minister Bae Kyunghoon) announced that its proposed 2026 budget and fund management plan totals KRW 23.7 trillion, the largest on record and a 12.9% increase from the 2025 supplementary budget (KRW 21.0 trillion). The R&D budget stands at KRW 11.8 trillion, up 21.6% year on year, representing 33.4% of total government R&D spending.

Category 2023 2024 2025 2026 (Proposal)

Total Budget 18.9 18.6 21.0 23.7

R&D Budget 9.8 9.0 9.7 11.8

※Note: 2023–2024 figures include programs transferred to the Korea AeroSpace Administration.

Of the government’s KRW 10.1 trillion AI budget, MSIT will oversee KRW 5.1 trillion, earmarked for projects including nationwide AI transformation (KRW 4.5 trillion) and AI-enabled S&T innovation (KRW 0.6 trillion).

Aligned with the Lee administration’s vision—“Putting people first, building a nation of shared happiness”—MSIT aims to overcome the dual challenges of slowing growth and intensifying global tech rivalry, while accelerating Korea’s transition to an innovation-driven economy. To this end, the ministry will (1) spearhead an AI Transformation (AX), (2) nurture NEXT strategic technologies, (3) foster a robust R&D ecosystem, and (4) promote balanced growth so that all citizens can share equally in the benefits of science, technology and digital innovation.

The four priority investment areas for 2026 are as follows.

❶ Leading Korea’s Leap into the World’s Top Three AI Powers: Support for Nationwide AI Transformation (AX)

(2025: KRW 3.44T → 2026 proposal: KRW 4.46T, +29.7%)

AI has become a strategic driver of productivity innovation and the creation of new industries, moving beyond a mere technology to a key determinant of future national competitiveness. To proactively respond to intensifying global AI competition and invigorate Korea’s AI ecosystem, MSIT will implement a whole-of-society AI Transformation (AX) across the public, economic, and social spheres.

First, to expand national AI infrastructure, MSIT will focus investment on:

 securing an additional 15,000 advanced GPUs (cumulative total: 37,000 units*),,

 establishing a National AI Computing Center,

 developing AI network technologies, and

 building data spaces for training specialized AI models.

*2025 GPU procurement (supplementary budget): 13,000 units; 2026 supercomputer No. 6 initiative: 9,000 units; 2026 GPU procurement (main budget): 15,000 units

 Strengthening access to AI computing resources: (2025) KRW 1,619.4B → (2026 proposal) KRW 2,108.7B

 KDB equity investment for expanding AI computing infrastructure: (2025) KRW 21.0B → (2026 proposal) KRW 11.8B

 Support for AI Research Computing Resources (R&D): (2025) KRW 9.0B → (2026 proposal) KRW 16.0B

 [New] Data-Center interconnect network technology leadership (R&D): (2026 proposal) KRW 7.0B

 [New] Global AI–RAN leadership (R&D): (2026 proposal) KRW 9.0B

 [New] Establishing a hyper-AI backbone network: (2026 proposal) KRW 8.3B

Second, in line with the rapid evolution and broader use of AI, substantial funding will support next-generation AI core and enabling technologies, including AI semiconductors and domestic NPUs, and physical AI and other transition-enabling technologies.

MSIT will also intensify efforts to train and attract top-tier AI talent, strengthening Korea’s position in the global race for talent.

 AI semiconductor demonstration support: (2025) KRW 98.4B → (2026 proposal) KRW 102.4B

 K-Cloud resource-sharing technologies leveraging AI semiconductors (R&D): (2025) KRW 36.6B → (2026 proposal) KRW 60.8B

 [New] Physical-AI frontier technologies (R&D): (2026 proposal) KRW 15.0B

 [New/Line-item] AI-centric universities: (2026 proposal) KRW 25.5B

 [Line-item] Star Fellowships for renowned scholars: (2025) KRW 9.0B → (2026 proposal) KRW 34.0B

Third, to realize an AI-enabled Society where citizens and businesses everywhere can access AI safely and easily, Korea will:

 develop world-class AI foundation models to underpin AI transformation across the public, economic and social domains,

 establish regional AX Innovation Hubs in Gwangju, Daegu, Jeonbuk and Gyeongnam to speed up development of localized AX models, and

 reinforce AI-driven cybersecurity by strengthening incident-response capabilities and expanding related security R&D.

Finally, as the government’s lead ministry for AI, MSIT will spearhead AI adoption across government by developing a (tentatively named) Intelligent Task-Specific Work-Innovation System.

 Support for World-Best LLM data utilization: (2025) KRW 30.0B → (2026 proposal) KRW 30.0B

 Regional AX Innovation Hubs (Gwangju, Daegu, Jeonbuk, Gyeongnam) (R&D): (2026 proposal) KRW 104.9B

 Public-sector AX program: (2025) KRW 30.0B → (2026 proposal) KRW 100.0B

 AI-based incident-response system: (2025) KRW 5.0B → (2026 proposal) KRW 15.0B

 [New/Line-item] Intelligent Task-Specific Work-Innovation System: (2026 proposal) KRW 3.2B

❷ Fueling the Innovation-driven Economy: Securing NEXT Strategic Technologies through Public–Private Partnership

(2025: KRW 4.64T → 2026 proposal: KRW 5.93T, +27.8%)

To break out of the low-growth phase and accelerate Korea’s transition to an innovation-driven economy, MSIT will step up investment in NEXT strategic technologies that are rapidly advancing and set to drive future industries.

First, the ministry will strengthen Korea’s technological lead in fields where it already holds a global edge, including semiconductors, displays, and secondary batteries.

At the same time, it will expand strategic investment in new frontier technologies such as advanced bio/life sciences and quantum technology, while bolstering R&D in enabling technologies—such as materials and next-generation energy—that underpin advanced industries.

 (Semiconductors) [New] Core technologies for next-generation photonic computing semiconductors (R&D): (2026 proposal) KRW 4.6B

 (Displays) [New] Core technologies for next-generation convergent free-form displays: (2026 proposal) KRW 4.7B

 (Secondary Batteries) [New] Foundational technologies for future-innovation-leading secondary batteries (R&D): (2026 proposal) KRW 5.0B

 (Advanced bio/life sciences) Bio & medical technology development (R&D): (2025) KRW 361.1B → (2026 proposal) KRW 434.3B

 (Advanced bio) [New] Digital-AI Virtual Cell Platform (R&D): (2026 proposal) KRW 3.75B

 (Quantum) Quantum Flagship (quantum computing) (R&D): (2025) KRW 9.8B → (2026 proposal) KRW 50.0B

 (Materials) Nano/materials technology development (R&D): (2025) KRW 300.4B → (2026 proposal) KRW 330.7B

Second, Korea will promote innovation by integrating AI into diverse fields like bio and materials research, raising R&D efficiency and enabling breakthroughs that go beyond existing limits.

 [New] AI-Bio Innovation Hubs (R&D): (2026 proposal) KRW 10.2B

 [New] AI-enabled S&T innovation technologies (R&D): (2026 proposal) KRW 4.5B

Third, to help government-funded research institutes grow into national flagship institutes, MSIT will reform their funding structure—currently fragmented into numerous small projects—into large-scale, mission-oriented, multi-year programs by expanding institutional block grants, and will newly allocate budget to provide performance-based bonuses for each institute’s top 1% researchers

 [New/Line-item] Institutional Strategy Development Units: (2026 proposal) KRW 363.6B

 [Line-item] Global Top Strategic Research Groups: (2025) KRW 152.1B → (2026 proposal) KRW 210.4B

 [New/Line-item] Performance bonuses for top researchers: (2026 proposal) KRW 5.1B

Finally, to ensure publicly funded research outputs become engines of technology-led growth, the ministry will:

 support deep-tech start-ups and scale-ups spun out of universities and government-funded institutes, and

 increase investment in technology realization and small-scale demonstration studies to accelerate innovation and the growth of new firms.

 Commercialization and start-up support for public R&D outcomes (R&D): (2025) KRW 53.2B → (2026 proposal) KRW 93.1B

 Strengthening industry–academia–research collaboration (R&D): (2025) KRW 20.2B → (2026 proposal) KRW 56.9B

 Fostering and supporting K-HERO (R&D): (2025) KRW 2.9B → (2026 proposal) KRW 8.9B

❸ Building a Robust, Researcher-Centered R&D Ecosystem

(2025: KRW 3.81T → 2026 proposal: KRW 4.51T, +18.4%)

MSIT will expand investment to foster a healthy, researcher-centered R&D ecosystem where diverse and creative basic research can take root and flourish.

First, moving beyond the restoration of prior cuts, the ministry will strengthen the basic research ecosystem so that diversity and excellence coexist by:

 increasing the number of basic research projects (12,000 → 15,000) to restore them to pre-cut levels, and

 expanding the National Research Lab (NRL 2.0) program, allowing universities to pool their resources beyond small professor- or department-centered labs and to systematically accumulate outcomes.

 Individual basic research (R&D): (2025) KRW 1,905.3B → (2026 proposal) KRW 2,265.7B

└ [New/Line-item] Basic Research Program: (2026 proposal) KRW 115.0B

 [Line-item] National Research Lab (NRL 2.0): (2025) KRW 10.0B → (2026 proposal) KRW 30.0B

Second, in the face of demographic challenges from low birthrates, MSIT will reinforce end-to-end support for young S&T talent so they can continue their studies and research without interruption due to economic or social factors. To this end, the ministry will:

 expand national scholarships, and

 increase research stipends, providing stronger backing for the full growth cycle of young scientists and engineers.

 National scholarships for outstanding students: (2025) KRW 57.3B → (2026 proposal) KRW 69.8B

 Stipend program for STEM students (R&D): (2025) KRW 60.0B → (2026 proposal) KRW 83.0B

 Cultivating innovative S&T talent (R&D): (2025) KRW 59.9B → (2026 proposal) KRW 76.9B

Third, to expand Korea’s pool of scientific and technological talent and enhance research capabilities to world-class levels, MSIT will:

 expand global talent-attraction programs,

 bring in leading overseas scholars and promising young researchers to top Korean universities and institutes, and

 provide long-term settlement support.

 [Line-item] Attraction of outstanding overseas scientists: (2025) KRW 38.8B → (2026 proposal) KRW 53.7B

 [New/Line-item] Sejong Science Fellowship (Return Track): (2026 proposal) KRW 26.0B

 Attraction of top-tier overseas AI talent (R&D): (2025) KRW 5.0B → (2026 proposal) KRW 10.0B

Finally, to enable Korean researchers to freely collaborate with world-leading institutions and scientists, the ministry will strengthen:

 joint-research support, and

 international collaboration networks with outstanding overseas research organizations.

 Building platforms for inter-governmental S&T cooperation (R&D): (2025) KRW 38.0B → (2026 proposal) KRW 49.9B

 Establishing cooperation hubs with leading overseas research institutes (R&D): (2025) KRW 22.4B → (2026 proposal) KRW 30.1B

 Support for participation in EU multilateral R&I programs: (2025) KRW 9.1B → (2026 proposal) KRW 12.5B

❹ Balanced Growth Powered by Science, Technology and Digital Transformation

(2025: KRW 0.58T → 2026 proposal: KRW 0.74T, +27.6%)

MSIT will expand investment so that all citizens—regardless of region or social background—can experience the benefits of science, technology and digital transformation and harness them for balanced growth.

First, to enable each region to build innovation capacity rooted in its unique strengths and secure new growth engines, MSIT will:

 significantly expand autonomous, region-led R&D reflecting demand across the “Five Mega-Regions and the Three Special Self-Governing Provinces,” and

 reinforce the role of regional R&D Special Zones as hubs for strategic industries.

 Support for regional R&D innovation (R&D): (2025) KRW 17.4B → (2026 proposal) KRW 89.0B

 R&D Special Zone development (R&D): (2025) KRW 116.1B → (2026 proposal) KRW 160.8B

Second, to address social issues directly tied to citizens’ safety and everyday life—such as disaster response, narcotics, and public security—the ministry will:

 expand problem-solving R&D, and

 broaden opportunities for local residents to engage in science-culture experiences, allowing the public to feel the positive impacts of scientific progress and public R&D outcomes in their daily lives.

 Innovative disaster-safety technologies (R&D): (2025) KRW 7.1B → (2026 proposal) KRW 8.7B

 [New] Field-deployable technologies to counter illicit narcotics (R&D): (2026 proposal) KRW 1.9B

 [New] Demonstration and dissemination of advanced-tech solutions to social problems (R&D): (2026 proposal) KRW 2.6B

 Science Culture Program: (2025) KRW 14.5B → (2026 proposal) KRW 16.7B

Finally, to enhance foundational AI and digital literacy nationwide, MSIT will:

 expand and upgrade AI-Digital Learning Centers (from 32 centers in 2025 to 69 centers in 2026), and

 scale up support for assistive ICT devices—such as braille displays and mouth-operated mice—for persons with disabilities who face barriers in access and use.

Through these efforts, the ministry will further intensify its drive to bridge the digital divide.

 Digital Learning Centers: (2025) KRW 27.9B → (2026 proposal) KRW 41.1B

 Support for strengthening regional digital capabilities: (2025) KRW 21.4B → (2026 proposal) KRW 21.5B

 Expanding access to assistive ICT devices: (2025) KRW 3.3B → (2026 proposal) KRW 3.6B

The 2026 Budget Proposal and Fund Management Plan, approved by the Cabinet on Friday, August 29, will be submitted to the National Assembly on Tuesday, September 2. It will undergo preliminary review by the Science, ICT, Broadcasting, and Communications Committee, followed by the main review by the Special Committee on Budget and Accounts, and will be finalized through a plenary vote during the regular session.

Minister Bae Kyunghoon stressed:

“The 2026 MSIT budget embodies the Lee Jae Myung administration’s strong commitment to overcoming Korea’s low-growth challenge and making the leap to an innovation-driven economy, with AI and science & technology as the twin engines of growth.

We will not stop at simply achieving record numbers. We will move swiftly on key projects to deliver concrete outcomes that the public can see and feel as soon as possible.”

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.