The government is pouring large-scale finances into achieving a leap forward in artificial intelligence (AI). It has allocated 10 trillion won for the establishment of a foundation for the AI transformation (AX) and the introduction of AI in industrial and daily life sectors. The budget for supporting research and development (R&D) and fostering new industries is 44.3 trillion won. The size of the R&D budget has been increased by nearly 20% compared to the previous year, and 1 trillion won will be invested to create a national growth fund worth 100 trillion won.
On the 29th, the government deliberated and voted on the '2026 budget proposal' at the Cabinet meeting.
◇ Goal of becoming a leading nation in physical AI
This budget proposal focuses on securing growth engines in the AI sector. It aims to promote the AI transformation in key industrial sectors such as automobiles, shipbuilding, home appliances, and semiconductors, striving to become a leading country in the field of physical AI (AI physically operating in real-world spaces).
It also aims to establish regional hubs for physical AI in connection with regional specialized industries such as energy and mobility in Gwangju, robotics and bio in Daegu, and machinery and parts processing in Gyeongnam.
In the field of daily life, the government will invest 900 billion won to support the 'AX-Sprint 300' project, which aims to integrate AI into 300 daily life-related products, including manufacturing, biohealth, and dwellings.
In the public sector, 37 billion won will be invested in AI tax convenience and customized welfare and employment recommendation services. A budget of 23.9 billion won has been allocated for the development of AI-based national safety services, including scientific patrols and efficient wildfire suppression systems.
A significant budget has also been allocated to secure AI development infrastructure. In particular, 2.1 trillion won has been included for securing 15,000 units of the latest high-performance graphics processing units (GPUs). When combined with the 10,000 GPUs purchased through this year's first supplementary budget, a total of 25,000 GPUs will be secured.
To secure AI and AX development personnel, the number of related graduate schools will increase from 19 to 24, and the number of generative AI research projects will rise from 5 to 13.
The existing education system will also transition to an AI-centered model, and a new 'corporate cooperation-type AI convergence vocational training program' will be established.
300 billion won will be invested to create a new cluster for integrating and opening learning data, and a platform called 'Space' will be newly established for sharing and transacting sector-specific data.
◇ R&D budget increased by 19.3%, the highest level ever
The research and development (R&D) budget for next year has been set at 35.3 trillion won, reflecting an increase of 19.3% compared to this year. This is the highest increase rate ever. The government plans to support the research community, which faced budget cuts during the previous government, with focused investments in the AI sector.
For advanced technology R&D, 10.6 trillion won has been allocated, an increase of 2.6 trillion won compared to this year. A budget of 3.7 trillion won is allocated for defense sector R&D, and 2.6 trillion won for energy sector R&D. AI and bio will each receive 2.2 trillion won and 1.6 trillion won, respectively.
An investment of 1 trillion won has also been reflected for the national growth fund, which aims to raise over 100 trillion won. The government plans to establish a national growth fund exceeding 100 trillion won over the next five years to expand investments in future strategic industries such as AI, semiconductors, and bio.
The nurturing of advanced technology unicorns and the expansion of the re-challenge fund for re-startup companies will also actively support the scale-up of promising small and venture corporations.