The government is moving to restructure funding for 2027 research and development, concentrating investment on national strategic technologies such as semiconductors, artificial intelligence, advanced bio and quantum technology. It also plans to streamline R&D spending across ministries by cutting discretionary outlays by about 15% and mandatory spending by about 10%.
The Ministry of Science and ICT and the Office of Budget Planning said they held a budget strategy meeting on the afternoon of April 30 to discuss the “2027 R&D investment strategy.” The meeting was chaired by Park In-gyu, head of the Science and Technology Innovation Office at the ministry, and attended by more than 30 ministries and agencies that run R&D programs.
Under the Framework Act on Science and Technology, the ministry’s Science and Technology Innovation Office draws up a plan each year to allocate and adjust the next year’s national R&D budget, after deliberation and approval by the National Science and Technology Advisory Council by the end of June. The budget office then compiles and considers the plan in drafting the final government budget proposal.
The government said the 2027 allocation and adjustment plan will focus on: strengthening strategy through cross-government “one-team” cooperation; restructuring government R&D and reinvesting in priority areas; overhauling programs through broad evaluation and feedback; and introducing an equity-investment approach to R&D support to build a virtuous investment cycle.
To improve efficiency and consistency, the government said it will reduce barriers between ministries and allocate R&D budgets from an integrated national perspective. It will also set shared goals and expand cooperation, including strengthening “inter-ministerial collaborative R&D.”
It will also pursue spending restructuring for government R&D. More than 30 ministries and agencies will work on budget efficiency and spending adjustments, using benchmarks of 15% for discretionary spending and 10% for mandatory spending across fiscal programs.
With resources secured through the restructuring, the government said it will reinvest in national strategic technologies in line with its “direction for advancing the national strategic technology system.” It previously selected 12 strategic technologies, including manufacturing and energy areas such as semiconductors, secondary batteries and hydrogen; mobility, aerospace and communications; and AI, bio and quantum. It also said it would foster the areas systematically by designating 50 detailed priority technologies.
The government also plans to hold a “National Strategic Technology Leading Next Project Promotion Conference” (tentative name) in May to select target projects.
It will also move to fix inefficient R&D programs. The innovation office said it will strengthen evaluation and inspections and reorganize programs around areas with higher potential to produce results.
In addition, the government said it will newly pursue an equity-investment model for R&D support, shifting away from a grant-centered structure to one that can recover investments.
Park said the 2027 R&D budget would be a “golden-time budget” to meet goals over the next four years. “We will thoroughly block waste factors and prepare a performance-centered budget that boldly invests in areas that are truly necessary,” he said, adding that the government would work as “one team” to drive technology-led growth.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.