The government set the 2027 research and development (R&D) budget at 39.5 trillion won, up 11.2% from this year. Following last year, the double-digit growth rate continues for a second straight year, concentrating investment in strategic technologies such as artificial intelligence (AI), semiconductors, and future energy, while also expanding support for regional R&D, basic research, and young researchers.
The Ministry of Science and ICT said on the 1st that, of the 2027 government budget bill approved at a Cabinet meeting, the R&D budget was set at 39.5 trillion won, up 4 trillion won from this year. Major R&D budgets allocated and coordinated by the Science and Technology Innovation Center at the Ministry of Science and ICT were also set at 33.8 trillion won, up 11.5%.
The government R&D budget growth rate will post double digits next year, following 19.9% this year. It surpasses the 7.2% average annual growth rate of the government R&D budget over the past 20 years.
The government will inject 13.8 trillion won into the 10 "NEXT strategic technologies," including AI; semiconductors and displays; advanced robots and mobility; next-generation batteries; future energy and nuclear power; advanced bio; aerospace and oceans; and quantum, up 25% from 11 trillion won this year. Of that, 5.8 trillion won will go to the "three megaprojects" of semiconductors, physical AI, and AI data centers (AIDC), and 3.7 trillion won will be allocated to the "seven SEEDs" of SMR, renewable energy, fusion, quantum, aerospace, advanced bio, and advanced supply chains.
In particular, the AI R&D budget surged to 4.1 trillion won, about 70% more than this year. The government plans to support development of a world model for large-scale synthetic data generation and a general-purpose robot foundation model to raise competitiveness in physical AI by 2030. Investment will also expand to help AI data centers enter global supply chains and to develop next-generation communications and security technologies. Semiconductors and displays will receive 1.3 trillion won, and advanced robots and mobility will receive 1.1 trillion won.
Investment for future industries will also increase. The future energy and nuclear sector will receive 1.7 trillion won to support development of high-efficiency solar cells, extra-large wind systems, next-generation power grids, innovative small modular reactors (SMRs), and fusion technology. Advanced bio will receive 2.2 trillion won, space, aviation, and oceans will receive 2 trillion won, and the quantum sector will be allocated 370 billion won.
A record 3.3 trillion won will be invested in new R&D projects next year. In particular, with the preliminary feasibility study system abolished this year, the launch pace of large R&D projects has accelerated. The Ministry of Science and ICT has significantly shortened the review period compared with the previous preliminary feasibility process for projects with total costs of at least 100 billion won, and this year reflected 23 out of 38 reviewed projects in the new budget.
Budgets will also be expanded in areas outside strategic technologies. Regional R&D will receive 4.5 trillion won, more than 1 trillion won higher than this year, and the autonomous R&D budget directly planned and led by regions will expand about fourfold, from 140 billion won to 550 billion won. In North Jeolla, South Gyeongsang, Gwangju, Daegu, and elsewhere, regional AI transition (AX) projects will integrate physical AI into local manufacturing industries. Defense and defense industry R&D will receive 5 trillion won to support defense applications of advanced technologies such as AI and drones and to secure self-reliance in core technologies.
A total of 1.8 trillion won was allocated for youth and talent. The basic research budget is 3.6 trillion won, and support for Government-funded research institute (government-funded research institutes) is 4.8 trillion won. The grassroots basic research budget to broaden the research base will be more than doubled, and block funding that allows universities to autonomously manage research personnel, facilities, and equipment will be newly introduced. Disaster and safety response R&D will also receive 2.7 trillion won to expand the use of AI and advanced technologies in on-site responses such as wildfire suppression.
Park In-gyu, head of the Science and Technology Innovation Center at the Ministry of Science and ICT, said, "2027 is the golden time to deliver outcomes within the next four years," and added, "We will fully support the detailed planning and refinement of next year's R&D until the government budget bill is finalized, and we will closely manage execution and projects."