▷ KRW 6.8 Trillion Investment in 2025 to Advance Critical and Emerging Technologies and Secure Leadership in Global Tech Race
- The joint effort of 22 ministries, agencies, and offices has finalized the 'First Master Plan for Critical and Emerging Technology Development (2024-2028) 2025 Implementation Plan.’
- An investment of KRW 6.8 trillion (including KRW 0.4 trillion for non-R&D sectors) will be made in 12 key areas this year, with further investment expansion planned for next year.
- A policy effort will be made to accelerate the commercialization of critical and emerging technologies and enhance the response system for Critical and Emerging Technologies (AIM at CETs*).
* CETs : Critical Emerging Technologies
The Ministry of Science and ICT (Minister Yoo Sang-Im, “MSIT”) held the 10th meeting of the Special Committee on Critical and Emerging Technologies at 2 p.m. on Wednesday, March 12, under the chairmanship of Ryu Kwang-Jun, Vice Minister for Science, Technology and Innovation. The committee approved the First Master Plan for Critical and Emerging Technology Development (2024-2028), which lays out annual tasks for the development of Critical and Emerging Technologies)* at the inter-ministerial level.
* (12 key areas) Semiconductor/Display, Secondary Cell, Advanced Mobility, Next-generation Nuclear Power, Advanced Biotechnology, Aerospace and Marine Technology, Hydrogen, Cyber Security, Artificial Intelligence, Next-generation Communication, Advanced Robotics/Manufacturing, Quantum
The Master Plan for Critical and Emerging Technology Development is a medium- to long-term policy based on the Special Act on the Fostering of Critical and Emerging Technology (“Special Act”). It was jointly established by 22 ministries and agencies with the aim of “building a scientifically and technologically sovereign nation.” The 2025 Implementation Plan for the Special Act sets specific policy tasks reflecting the latest trends in science and technology, such as accelerating transition to artificial intelligence (AI) and growing technological integration, the change in the direction of S&T policies in the United States under the new Trump administration, and China's technological advance.
The key objective of 2025 is harnessing whole-of-government capabilities to nurture Critical and Emerging Technologies (“AIM at CETs”) by 1) promoting technology commercialization and corporate collaboration, taking into consideration that the race for technological dominance is fierce among not just governments but also businesses; 2) swiftly upgrading the response system for critical and emerging technologies to be more agile, and 3) producing more tangible outcomes through stronger mission-oriented investments.
The government plans to invest a total of KRW 6.4 trillion, a 30% increase from the previous year, in research and development to foster the 12 critical and emerging technologies and 50 core technologies, and will continue to expand the scale of investment throughout 2026. In addition, non-R&D projects worth KRW 370 billion will be promoted to foster start-ups in the fields of critical and emerging technology.
Key Task 1: Fully Support the Commercialization of Critical and Emerging Technologies
The government will invest KRW 373.5 billion in 10 key strategic technology-related projects, including the launch of five new flagship projects* in the three game-changing fields—AI, advanced biotechnology, and quantum—and will seek to identify projects in areas such as hydrogen and advanced robotics, where there have been no flagship R&D projects to date.
* AI semiconductors, K-Cloud (MSIT, KRW 36.6 billion), biofoundry (MSIT, MOTIE, KRW 11.3 billion in total), quantum technology (MSIT, 25.2 billion won), advanced semiconductor packaging (Industry, KRW 17.8 billion), and inorganic light-emitting displays (MOTIE, KRW 18 billion)
In addition to startup support programs such as the Deep Tech Incubator Project for Startup (DIPS), and the Tech Incubator Program for Startup (TIPS), the government will expand support for the scale-up of critical and emerging technology-related companies, including the creation of a new KRW 1 trillion private-led “Science and Technology Innovation Fund”* and the “Scale-up Fund,” aimed at expanding the scale of research outcomes. The government will also strengthen the creation of industry-academia cooperation clusters, such as by designating specialized biotech research institutes and regional technology innovation hubs in collaboration with special self-governing provinces.
* A four-year fund (2025-2028) with KRW 1 trillion—KRW 500 billion raised from the three commercial banks (Shinhan, KEB Hana, and Woori Bank) exclusively handling inter-governmental research fund management system (master fund) and KRW 500 billion raised from private investments (matching funds)
Pursuant to Article 9 of the Special Act, companies designated as “verified strategic technology holders”—meaning they have been verified to possess, manage, or research and develop critical and emerging strategies— will receive bonus points* in the selection process for military service, policy financing, and R&D projects. In particular, “artificial intelligence” will be added to the list of critical and emerging technologies stipulated in the Act on Restriction on Special Cases Concerning Taxation, and the tax credit rate for semiconductor investments will increase by 5%p.
* Bonus points will be given when “verified strategic technology holders” apply for projects supporting joint innovation R&D between university research institutes and start-ups (KRW 7.5 billion in 2025)
The strategic technology talent development policies will continue to be improved with AI and data—for example, conducting job analysis with a large language model (LLM) to identify the demand from industry and tracking the growth path of talent through linkage with the Employment Insurance Database. Moreover, with the Special Act on Innovation of Talent in High-Tech Industries, which went into effect on January 17, 2025, demand-oriented training programs in collaboration with companies will be strengthened— for example, acquiring master's and doctoral degrees through in-house graduate schools and designating advanced industrial academies.
Key Task 2: Dramatically Improve the Ability to Proactively Respond to Security Issues
To address changes in the diplomatic and security environment, including generative AI and physical AI, digital biotech, and the new US administration, the 12 national startegic technologies and the mission-oriented strategic implementation roadmaps will be reorganized and overhauled through a public-private partnership. Moreover, the government will abolish the preliminary feasibility study to expedite R&D projects, and establish an intensive support system for strategic technology patents, which will help establishing corporate R&D strategies using patent big data, preventing intellectual property theft, and responding to patent disputes.
In consideration of environmental changes, such as Trump 2.0 and the shift toward protectionism across the world, the government will revise its international cooperation plans to adapt to each sector and country. For three game-changing technologies (AI, quantum, and advanced biotech), the government participated in the Paris AI Action Summit (February 2025) and established the Global AI Frontier Lab*, an international AI research lab, and will strengthen Korea’s engagement in international organizations, such as the OECD.
* Created in New York University (NYU), U.S., to promote international research on AI, including trustworthy AI and AI healthcare.
The amendment of the Special Act on the Fostering of Critical and Emerging Technology established a new provision requiring prior consultation when providing information in response to a request for important information from foreign governments and organizations, Moreover, the technology protection system will be upgraded to address the global tech race. The investment for the 10 defense-related strategic technologies will also continue to be expanded.
* Amendment to Article 27 of the Special Act on the Fostering of Critical and Emerging Technology (to be enacted on August 1, 2025)
Key Task 3. Establish a mission-oriented R&D promotion system to create tangible results
Pursuant to the Special Act, the government will implement the Mission-oriented Visionary Project (MVP) on the key tasks for fostering critical and emerging technologies, including conducting large-scale research, securing next-generation original technologies, and supporting specialized research institutes. As for strategic research projects, the cash and in-kind contribution ratio for the project-performing company will be halved*, and in-depth consulting will be provided along with ample benefits. The budget for the newly designated Global Top Strategic Research Team, launched by government-funded research institutes to foster the 12 critical and emerging technologies, will also be increased from KRW 100 billion to KRW 125 billion.
* In-kind contribution ratio: 25-50% → 20-40% / Cash contribution ratio: 10-15% → 5-10%
(To be applied after a separate review for each project within the scope of exemption)
In particular, the government will hold and Emerging Technology Innovation Forums on a regular basis with domestic and foreign policy research institutes and major companies in the 12 critical and emerging technology sectors, and establish a working-level committee to explore measures for addressing the global tech race and reflect them in future policies.
Ryu Kwang-Jun, chair of the Special Committee on Critical and Emerging Technologies and Vice Minister for Science, Technology and Innovation, said, “In the current trend of AI transition and accelerating technological competition, securing critical technologies is the only way to ensure a nation’s survival both in terms of economy and security. As the ministry in charge of Korea’s science and technology policies, the MSIT will maximize policy-making capabilities across ministries and lead R&D investment in the 12 critical and emerging technologies to wisely navigate through the global race for technological dominance.”
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.