The budget for next year's East Sea deep-sea oil and gas exploration project, the "Blue Whale" project, has been entirely cut. The project is expected to proceed by attracting investments from overseas companies without any government financial input.
The budget for research and development aimed at a major transformation in artificial intelligence (AI) and securing advanced industrial technology has been significantly increased. Financial support for the transition to renewable energy and strengthening responses to trade and exports has also been expanded.
The Ministry of Trade, Industry and Energy announced on the 1st that it has organized next year's budget to be 13.878 trillion won, a 21.4% increase from this year's original budget.
Next year's budget for the ministry focuses on the spread of AX (AI transformation), nurturing advanced and key industries, transitioning energy centered on renewable energy, enhancing responses to trade and exports, and strengthening supply chains.
Looking at the major sectors, the budget for the spread of AX has been allocated 1.1347 trillion won, double this year's budget of 565.1 billion won. Specifically, the budget for the AI factory leading project, which integrates artificial intelligence into manufacturing to increase productivity and reduce manufacturing expenses, has been increased by 61.8 billion won from this year, reaching 220 billion won.
The budget to support the acquisition of super-gap technology in advanced and key industrial sectors such as semiconductors, shipbuilding, display, and batteries will increase from 1.3026 trillion won this year to 1.6458 trillion won next year.
In the shipbuilding sector, the budget for technology development, including icebreaker technology for Arctic route navigation and autonomous ships integrated with artificial intelligence, has been expanded. Furthermore, 30 billion won will be invested in the Korea-U.S. shipbuilding cooperation project called MASGA (Make America's Shipbuilding Great Again) to support collaboration projects among Korean corporations.
The budget related to the U.S. investment fund includes 600.5 billion won allocated as funds for the Korea Trade Insurance Corporation performing guarantee work. This year's budget of 80 billion won has increased 65 times. With the rapid increase in funds, the scale of guarantees from the Korea Trade Insurance Corporation is also expected to surge. Considering that guarantees can reach up to 20 times the usual fund level, it is anticipated that it will support new investments worth 12 trillion won.
Vice Minister of Trade, Industry and Energy Moon noted during a briefing, "Among the 1.7 trillion won budget for trade and export responses, 600.5 billion won for the Trade Insurance Fund is linked to the U.S. investment fund," and he stated, "Negotiations are still ongoing, so the scale and timing of the projects have not been finalized, but regardless of how they are carried out, if there are projects, the format is likely to be a capital call, so we have prioritized allocating about 600 billion won to the Trade Insurance Fund in consultation with related ministries."
Additionally, the budget related to renewable energy has been increased by 42% to 1.2703 trillion won compared to this year.
It has been confirmed that the budget for the Blue Whale project, which the Yoon Suk-yeol government is focusing on, has not been allocated. Vice Minister Moon stated, "The Blue Whale project is not reflected in this budget." Regarding its continuity, he remarked, "I understand that it is being thoroughly reviewed in the energy sector," adding, "It is too early to say whether to abandon or continue at this point."