The government will significantly increase the research and development (R&D) budget for next year, actively working to secure future growth engines. It will carry out large-scale investments in key areas such as artificial intelligence (AI), energy, and strategic technologies, while also expanding support for basic research, talent development, and regional innovation.
The Ministry of Science and ICT noted on the 22nd that it has deliberated and approved the preliminary budget allocation and adjustments for the national research and development projects for 2026 at the plenary meeting of the Presidential Advisory Council on Science & Technology held at the presidential office. This is the first R&D budget since the inauguration of Lee Jae-myung's administration.
The government R&D budget, set at an unprecedented 35.3 trillion won, aims for real growth through improvement and innovation. Of this, the major R&D budget amounts to 30.1 trillion won, which is a 21.4% increase compared to this year's 24.8 trillion won. It is expected to be submitted to the National Assembly along with the general R&D budget after the government budget planning process. The government R&D budget is divided into major R&D budgets determined by the Ministry of Science and ICT and general R&D budgets formulated by the Ministry of Economy and Finance.
Park In-kyu, head of the Science and Technology Innovation Headquarters, explained at a briefing held on the 22nd, "The government R&D scale for 2026 is the largest in the last 20 years and has the highest R&D growth rate," adding, "This reflects the current government's commitment to recognizing R&D as a core engine of real growth and the need for bold investment."
The major R&D budget for 2026 has been organized based on two pillars: "technology-driven growth" and "inclusive growth." Technology-driven growth means investing decisively in key area R&D to support a substantial leap in productivity and the cultivation and upgrading of future strategic industries. Inclusive growth aims to restore research environments devastated by the previous administration's cuts to the R&D budget, transitioning to a sustainable research ecosystem.
The AI budget, one of the key areas for technology-driven growth, will increase by 106.1% from the previous year to 2.3 trillion won. The energy budget will rise to 2.6 trillion won (19.1%), while the strategic technology budget will grow by 8.5 trillion won (29.9%). Additionally, the defense sector will receive 3.9 trillion won (25.3%), and small and venture firms will see an increase to 3.4 trillion won (39.3%).
The AI sector will focus on investing in next-generation core technologies such as artificial general intelligence (AGI), lightweight and low-power AI, and physical AI that can be physically implemented, while also enhancing the AI infrastructure ecosystem. The energy sector will accelerate the transition to renewable energy through the development of demonstration technologies such as ultra-high-efficiency solar cells and ultra-large, high-output wind power, domestic production, establishing clean hydrogen value chains, and developing small modular reactor (SMR) technology.
Efforts will also be made to secure future foundational technologies such as quantum computing and synthetic biology and to localize core supply chain technologies such as AI semiconductors and quantum-resistant encryption. The defense industry will strengthen the integration of AI and quantum technologies alongside the performance enhancement of K-9 self-propelled howitzers. Support for small and venture corporations will expand competitive nurturing R&D linked to private investment, and through innovative procurement and purchase-linked R&D, a footing for the growth of early-stage companies will be established.
Investment aimed at restoring the research ecosystem will also be expanded. The budget for basic research will grow to 3.4 trillion won, a 14.6% increase from the previous year. The number of individual basic research projects will increase to over 15,000, exceeding the 2023 level, while the number of new projects under 100 million won that were previously discontinued will be raised to 2,000 for full-time and 790 for non-full-time positions to strengthen research autonomy.
The budget for talent development will increase by 35.0% from the previous year to 1.3 trillion won. The goal is to train 6,000 new talents and 2,500 postdoctoral researchers in key areas such as AI and biotechnology, and 16,000 master's and doctoral students. Additionally, the "Brain to Korea" project will be promoted to attract outstanding talents from abroad.
Government-funded research institutes have been allocated 4 trillion won, representing a 17.1% increase from the previous year. Plans include gradually abolishing the project-based system (PBS) and establishing a strategic research project worth 500 billion won, along with incentives for top researchers (up to 1.2 trillion won), to allow researchers to generate results stably. The PBS is a system that ensured national research and development (R&D) projects were awarded through competition, implemented since 1996.
Director Park noted, "With the phased abolition of the PBS, this year, we will allocate 500 billion won from the completed entrusted projects to the Institute Strategy Development Division (ISD), but nothing has been decided for the future," adding, "Policies post-PBS abolition will be subjects of future research."
The regional growth budget has increased by 54.8% to 1.1 trillion won. It aims to support balanced regional growth through autonomous R&D budget allocations by region and the nurturing of innovation clusters. The disaster safety budget is sized at 2.4 trillion won, a 14.2% increase, prepared to respond to complex disasters through AI and drone-based disaster response technology development and multi-ministerial collaboration projects.
Director Park stated, "Two years ago, cuts to the government R&D budget caused a huge shock to the research field, and since I have been in the research field, I know well the confusion that researchers experienced," adding, "This budget proposal is a promise to the people to restore the research ecosystem, going beyond just a simple increase in numbers." He said, "As this is a valuable resource that has been difficult to secure, I will work hard to ensure that results follow," and also added, "As Korea's Chief Technology Officer (CTO), I will ensure thorough operations and management."
Bae Kyung-hun, Minister of Science and ICT, said, "This R&D budget proposal is the largest ever and has been dramatically expanded to achieve not only the recovery of the research ecosystem but also complete restoration and realization of true growth," adding, "We plan to establish a sustainable research ecosystem in collaboration with the scientific and technological community through a stable and predictable R&D investment system."