The Ministry of Science and ICT (“MSIT”; Minister Lee Jong-ho) announced The First Mid- and Long-Term National R&D Investment Strategy (2023-2027) on March 7 (Tuesday) at the Cabinet Meeting chaired by President Yoon Suk-yeol.
The details announced The First Mid- and Long-Term National R&D Investment Strategy (2023-2027) is as follows:
Korea’s first-recorded investment in government-led R&D projects was KRW 1.2 billion in 1963; it has expanded to KRW 31.1 trillion in 2023. To improve the predictability, strategic focus, timeliness and effectiveness of government-led R&D, the necessity of a medium- to long-term investment strategy has been constantly raised.
Moreover, considering the importance of a sound finance and complex challenges posed by the sluggish economy, it is the time to make strategic and efficient investment, going beyond expanding the size of investment led by the government.
There is a growing emphasis on the role of R&D investment in addressing not only the changes in the global landscape, such as the race for technology dominance, climate change and supply chain crisis, but also social issues, such as population decline, digital transformation and balanced regional growth.
The role of investment strategy has become more important amid such domestic and global environments, and the revision of the Framework Act on Science and Technology in 2020 provided the legal grounds for developing an investment strategy; after the implementation of the revised Framework Act on Science and Technology, policy studies have been carried out to analyze the investment status and conditions, and some of the key investment issues have been identified.
A strategy development committee was established (October 2021) with the participation of over 130 experts from diverse fields; the committee identified and reviewed tasks for each sector and received comments through a public hearing (November 29, 2022) and a meeting with industry people (December 7, 2022).
The First Mid- and Long-Term National R&D Investment Strategy was deliberated and adopted at the meeting of the Deliberative Council of the Presidential Advisory Council on Science & Technology (PACST), the highest-level organization that deliberate on major government S&T policies, held on February 22, 2023.
The First Mid- and Long-Term National R&D Investment Strategy presents the vision of “Becoming one of the top five science and technology powerhouses by 2030” and policy goals of delivering on major national tasks and producing fruitful achievements. The investment goal is to maintain the current R&D expenditure of 5% by investing KRW 170 trillion for over five years (National Task no. 74), and thereby raising the technology level of Korea from the current 80% to 85% compared to the most technologically advanced countries by 2027.
| 3. Implementation Strategies & Tasks |
Four strategies and 23 tasks will be implemented to achieve the vision and goals.
| ◈ Strategy 1. Resolve national issues by reinforcing mission-oriented investments based on private-public sector collaboration |
| １ Cultivating strategic technologies: Invest KRW 25 trillion in the 12 National Strategic Technologies |
ㅇ Invest over KRW 25 trillion over five years (KRW 3.74 trillion in 2022 → KRW 6.03 trillion in 2027; annual increase of 10%) to the 12 National Strategic Technologies designated by the National Strategic Technology Promotion Plan.
| 2 Implementing carbon neutrality |
ㅇ Innovate technologies for eco-friendly energy production, storage and distribution; Promote the transition to a low-carbon industry structure by securing fuel competitiveness ahead of demand and advancing greenhouse gas emission processing technology.
| ◈ Strategy 2. Strengthen innovation capabilities through selection and concentration within financial soundness |
| １ Digital Innovation: Digital transformation based on innovative technologies such as AI and advanced communication |
ㅇ Promote digital transformation of the industry and public sector and nurture new industries by developing key digital technologies for AI, 5G/6G, digital infrastructure, data security, autonomous driving.
| 2 Strengthening business capabilities: Customized support based on companies’ innovation capabilities |
ㅇ Establish a customized support system based on companies’ innovation capabilities and enhance the effectiveness of support through inter-department collaboration to boost the growth of the private sector and build businesses’ innovation capabilities.
| 3 Supply Chain Response: Secure technologies for materials, components and equipment, as well as items for a sustainable future growth |
ㅇ Secure technologies for materials, components and equipment, as well as items for a sustainable future growth to prepare for a supply chain crisis and build national industrial capabilities.
| 4 Improve Public Health: Promote biotech manufacturing innovation, respond to ageing and infectious diseases |
ㅇ Promote next-generation manufacturing innovation and expand demonstration facilities; promote healthy ageing at each stage of life cycle; strengthen the response and preparation capability to infectious diseases; share bio data and promote digital transformation.
| 5 Cutting-edge defense: Develop state-of-the-art weapon system and realize smart national defense |
ㅇ Develop “game changer” weapon system; boost civil-military cooperation; expand the development of key original technologies; realize “smart” national defense based on data, network and AI (D.N.A.).
| ◈ Strategy 3. Bolster the scientific and technological foundation preparing for the future |
| １ Fundamental research; provide reliable infrastructure support |
ㅇ Systemize the basic research support by sector; expand support for young researchers; strengthen the foundation for basic research and secure world-class researchers by improving the basic research ecosystem.
| 2 Cultivating workforce: Graduate schools’ research and education innovation, workforce development through industry-academia-research institute collaboration |
ㅇ Innovate research and education by supporting STEM graduate schools; secure graduate-level, highly educated workforce by supporting industry-academia innovative talent nurturing and private-sector-led talent nurturing.
| 3 International Cooperation: Expand the scale and scope of international cooperation; promote sustainable development goals (SDGs) |
ㅇ Make science and technology international cooperation more strategic; promote international joint research and overseas hub by supporting studies on science, technology, space, deep sea, and polar regions for global sustainable development.
| 4 Regional Innovation: Foster regional young talent and enterprises and improve their innovation capabilities |
ㅇ Support young talent and technology commercialization in the region; restructure the regional industry and facilitate innovation-driven growth; advance the regional research system and collaboration by building the region’s own innovation capabilities.
| 5 Resolving social issues: Respond to disasters and environmental problems based on science and technology
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ㅇ Improve systemized prediction/management and on-site response capabilities with science and technology; strengthen the response to social issues through science and technology.
| ◈ Strategy 4. Improve the effectiveness with the bold innovation of investment systems |
[ Promote Public-Private sector collaboration ]
| １ (Business support innovation) Expand diverse type of support, improve connection between investment projects by private and public sector |
ㅇ Depart from stiff and unidirectional support structure and expand support programs in connection with private investments such as investment matching, loan matching, reimbursements, and vouchers.
| 2 (Reflect business needs) Expand the participation of private businesses in planning and investing of government R&D programs |
ㅇ Rapidly reflect the market needs and improve commercialization output through expanding the participation of private sector players in budget review processes and the planning of government policies and programs
| 3 (Expand public-private sector joint projects) Select and invest in large scale public-private sector joint projects |
ㅇ Public sector and private sector jointly select and invest into large-scale R&D projects in future industrial fields with high potentials
| 4 (Operate National Technology Strategy Centers) Support the establishment of investment strategies in each technology field |
ㅇ In order to establish government-wide R&D investment strategies, designate national technology strategy centers in each technological discipline, mainly government research institutes, and provide support.
[Accelerate technology commercialization]
| 5 (Technology scale-up) Government-wide systemic R&D on technology commercialization to cultivate deep tech |
ㅇ Utilizing digital based high-potential technology selection system, expand the support system for output-creating R&D businesses and reinforce creating and cultivating start-ups based on publicly sourced technologies.
| 6 (Improve multi-ministry cooperation) Prioritize on reflecting integrated project management system, mandate the use of shared performance indicators |
ㅇ In multi-ministry programs, prioritize in implementing integrated program management system, and mandate the program to recommend the establishment of shared key performance indicators (KPI)
| 7 (Promote civil-military collaboration) Reinforce the collaboration centered with public-private cooperative entities, diversify the collaboration methods |
ㅇ Promote close collaboration in R&D centered around public-private cooperative entities and actively engage in diverse methods of collaborations to achieve the end goal
[effective investments]
| 8 (Inter-ministerial integrated budget system) Operate inter-ministerial integrated budget allocation and adjustment system |
ㅇ For each mission-based business group, perform “strategic expenditure review” and operate the inter-ministerial integrated budget allocation and adjustment system (vertical+horizontal)
| 9 (Improve the connection with feasibility analysis) Improve the contents of the programs not subject to feasibility analysis and prioritize investments to programs subject to feasibility analysis. |
ㅇ As the standard to be subject to a feasibility analysis has been increased (KRW 50 billion → 100 billion), Improve the management of the programs not subject to feasibility analysis with the total program cost of KRW 50 billion or higher to be planned with solid benefits
| 10 (Systemize the research facilities and equipment) Increase efficiency in operational management and strengthen research equipment development capabilities |
ㅇ Establish effective and strategic operation and management schemes for research and development facilities and equipment and improve the capability to develop research equipment and reliability
| 11 (Expenditure restructuring) Remove similarity and redundancy, and expand unit costs of programs and projects |
ㅇ Prevent redundancy and improve the business structure efficiency by removing similar and redundant factors, and expanding the unit cost for each program and project through ensuring the efficient expenditures in the review process.
The Ministry of Science and ICT has established four major strategies and 19 key performance indicators to ensure effective implementation of “The First Mid- and Long-Term National R&D Investment Strategy " and plans to review the performance of the implementation through annual planning.
Science and ICT Minister Lee Jong-ho stated, " The First Mid- and Long-Term National R&D Investment Strategy is the first statutory investment strategy established under the Yoon administration, and it will increase the strategic performance and predictability of national R&D investments, laying the foundation for Korea to become one of the world's top five science and technology powerhouses by 2030."
"We will actively invest in fostering 12 critical and emerging technologies, including space, nuclear, and quantum technologies, which require the total mobilization of national (public and private) capabilities, and in achieving carbon neutrality," he added.
For further information, please contact the Public Relations Division (E-mail: msitpress@korea.kr) of the Ministry of Science and ICT.
Please refer to the attached PDF.