- Focused investment in three game-changing technologies (AI-semiconductors, advanced biotechnology, and quantum technology)
- Launching the era of KRW 1 trillion budget for space and innovative and bold R&D— record investment of KRW 2.94 trillion in basic research

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The Ministry of Science and ICT (MSIT) announced that it has developed a revision draft of the budget allocation for national R&D projects in 2025 and finalized it at the ninth Presidential Advisory Council on Science and Technology (PACST) deliberation meeting held on Thursday, June 27.

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The major R&D budget for 2025 is KRW 24.8 trillion, a significant increase from that of the previous year; it includes KRW 24.5 trillion reviewed until June and the amount to be adjusted and reflected after additional revisions until the completion of the government budget plan*.

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< Major R&D Budget Size by Year >

* Based on finalization by the National Assembly, excluding some facility costs transferred to general R&D

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Since last year, the government has been promoting the reform of the government R&D investment system through the abolition of the R&D preliminary feasibility study, establishment of an Innovative and Bold R&D support system, exclusion of government-funded research institutes from public agencies, and improvement of the global R&D system, under the overall policy direction of shifting to a “first-mover“ R&D system.

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The 2025 R&D investment will focus on reorganizing the portfolio toward a first-mover R&D system based on these reforms. By actively expanding strategic investments in R&D programs, including Innovative and Bold R&D aimed at becoming the first and the best, “game changer” technologies that will drive national innovation, and world-class collaborative research, the content and quality of government R&D will become completely different, further strengthening the innovation and effectiveness of government R&D. The major R&D priorities in 2025 are as follows.

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《 Key Areas of R&D Investment in 2025》

➀ KRW 1 trillion government investment in artificial intelligence (AI) R&D—Expanding investment in three game-changing technologies (AI-semiconductor, advanced biotechnology, quantum technology)

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The three game-changing technologies are worth KRW 3.4 trillion; the government will support strategic investments in areas where Korea’s competitiveness can be fully utilized to have the upper hand in irreplaceable technologies in the global value chain.

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In the AI-semiconductor field, there will be greater focus on next-generation AI (e.g. next-generation general-purpose AI, AI safety technologies) that will change the game by overcoming the limitations of the current big-tech-led AI ecosystem; investment will be expanded in AI-semiconductors that have shown promise through government R&D.

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In order to foster advanced biotechnology as a future flagship industry that will succeed the semiconductor industry, investment will be strengthened in digital bio fostering infrastructure and in core technologies for bio manufacturing; support will be provided to technology development to address healthcare issues such as essential and community healthcare.

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In the field of quantum technology, there will be greater strategic investments to lay the foundation for its industrialization. While strengthening the domestic research ecosystem and further solidifying the foundation for global cooperation, there will be more investment in securing core quantum technologies and strengthened support for closing the technology gap with leading countries.

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➁ KRW 1 trillion investment in Innovative and Bold R&D to implant DNA of pioneering spirit across national R&D

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In order to anchor a high-risk, high-reward R&D system that can create disruptive innovations even at the risk of failure, the government has established a new investment track called "Innovative and Bold R&D" and identified target projects in March and June. In 2025, about KRW 1 trillion will be invested in these innovative and bold R&D fields, which will be provided to research aiming for a 10-fold quantum jump, instead of just a 10% improvement, and research pioneering new concepts that do not currently exist.

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➂ Largest investment in history of KRW 2.94 trillion in basic research, 11.6% year-on-year increase

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The investment of KRW 2.94 trillion in basic research, the largest in history, is designed to make research easier, more strategic, and more stable. First, Leapfrog Research program was established to help promising researchers do better, and Pioneering Research program was established to support the follow-up research of outstanding investigators and initiate bold research in emerging fields. To make research more strategic, research tracks that contribute to national agendas and regional innovation were established. In addition, the government has expanded Creative Research program that allows researchers stably conduct diverse and new theoretical research so that basic research can become a treasure trove of knowledge creation.

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➄ Igniting the nation's next growth engine with KRW 2.4 trillion investment in cutting-edge “super-gap” technologies

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The government will invest KRW 2.4 trillion to maintain Korea’s edge over other countries in high-tech fields in which Korea is leading. In the secondary cell sector, support will be provided to secure Korea’s competitiveness in next-generation technology such as all-solid-state and lithium metal; in the display sector, investment will be strengthened to secure Korea’s competitiveness in OLED and iLED. In the semiconductor sector, support will be provided to strengthen ecosystems in promising fields such as advanced packaging and compound semiconductors; and in the next-generation communication sector, investment will be put into expanding Korea’s presence in the communication sector through global leadership in 6G and satellite communication development.

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➅ KRW 3.2 trillion to realize space economy and address future energy demand

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The space sector, which has entered the era of KRW 1 trillion budget for the first time in 25 years, will receive further investment to realize the space economy, with the Korea AeroSpace Administration (KASA), which opened in May, taking the lead. Korea plans to invest in space exploration with the goal of “landing on the moon in 2032 and reaching Mars in 2045," secure essential competencies for next-generation launch vehicles, build infrastructure such as private launch sites, and support the creation of a self-sustaining space industry ecosystem, including localization of space technology and components.

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The government will strengthen investment in technology development that can address the surge in electricity demand triggered by AI and electric vehicles and various future energy needs. Through public-private partnerships, it will focus on investing in next-generation nuclear reactor technologies such as: innovative small nuclear reactors; production, supply and utilization of carbon-free energy production (e.g. hydrogen); process innovation in key industries; and responses to global carbon regulations.

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➆ Building a growth ladder for businesses that enables a virtuous cycle of innovation

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To help leading and promising companies with excellent capabilities achieve qualitative growth through bold R&D, government support will be reorganized around innovation, and bold support measures, such as investment and financing, will be strategically utilized and linked with other policies to help those companies continue to grow even after government R&D.

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➇ Expand investment in science and technology for a safer Korea

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The government will strengthen support for disaster management and safety R&D with a focus on key areas to quickly respond to emerging threats directly related to people's lives, such as digital crimes, and to strengthen on-site response capabilities for major disasters such as earthquakes, floods, fires, and industrial accidents. In particular, support will be given to technology development to protect the public from emerging incidents of electrical fires, such as those caused by electric vehicles, and large fires in freight facilities.

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In the defense sector, Korea will expand investment in enhancing the competitiveness of defense weapon export systems such as the K-9 self-propelled artillery and the Korean Medium-range Surface-to-Air Missile (KM-SAM), and strengthen civil-military and inter-ministerial cooperation.

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Ryu Kwang-joon, Vice Minister for Science, Technology and Innovation said, "Shifting to a first-mover R&D system is a survival strategy for Korea to compete for technological dominance and a necessary process to leap forward from a period of stagnation. The government will do its best to accelerate the transition to a first-mover R&D system and open up a new path of innovation through system reforms and the largest investment in history."

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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.

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Please refer to the attached PDF.