The South Korean government plans to invest over 200 trillion won (approximately $150 billion) in research and development (R&D) over the next five years to enhance self-sufficiency in key technologies such as semiconductors, artificial intelligence (AI), and robotics. This initiative aims to move beyond a catch-up growth model and realize the vision of an 'indispensable South Korea.'
On September 1, the Ministry of Science and ICT announced that Deputy Prime Minister and Minister of Science and ICT Lee Baek-hoon confirmed the 'Second National R&D Long-Term Investment Strategy (2026-2030)' following a review by the National Science and Technology Advisory Council.
This investment marks the first time the government will allocate over 200 trillion won for R&D over a five-year period, based on Article 7-2 of the Framework Act on Science and Technology, which mandates the establishment of a top-level investment strategy every five years.
The Ministry aims to address the 'nutcracker' situation of technological reversal with China in key industries and widening gaps with leading countries in future technologies. The strategy was developed through collective intelligence, involving 15 general committee members and 216 members from 13 subcommittees, analyzing 33.81 million scientific papers from the past 20 years using AI to identify 657 high-growth promising technologies and 405 core technologies for the next four years.
The vision of the investment strategy is to achieve an 'indispensable South Korea through N·E·X·T investment in science and technology.' The government has set ambitious goals, including investing over 200 trillion won in R&D over five years, developing world-class AI models, maintaining the top position in semiconductor manufacturing, and constructing the first commercial small modular reactor (SMR) by 2035. The strategy has been reorganized into four major strategies and eight key projects, with the acronym N·E·X·T representing each strategy.
The 'N (Nexus)' strategy focuses on consolidating technologies in three mega-projects: AI, semiconductors, and robotics. The goal is to elevate global AI competitiveness from 5th to 3rd place, increase the self-sufficiency rate of key semiconductor materials from 30% to 50%, and boost the domestic production rate of essential robotic components from 41% to 80%. The budget for next year allocates 4.11 trillion won for AI, 1.31 trillion won for semiconductors and displays, and 1.08 trillion won for advanced robotics and mobility.
The 'E (Enforce)' strategy aims to strengthen capabilities in seven new growth engines (SEED), including advanced bio, quantum, aerospace, advanced supply chains, energy, and defense. By 2029, the government plans to establish a national biofoundry to develop three blockbuster drugs, validate two domestic full-stack quantum computer products in real environments, and attempt the first privately-led lunar landing by 2030. In defense, the goal is to build a Korean defense AI operating system to improve the country's defense science and technology ranking from 8th to 7th. The budget for next year includes 2.2 trillion won for advanced bio and 5.05 trillion won for defense.
The 'X (eXpand)' strategy focuses on expanding the ecosystem for basic research, research institutes, and regional R&D. The government plans to eliminate the PBS system that incentivized competition for labor costs and fully support labor costs with grants by 2030, increasing the number of top 100 research institutions from two to five. The 'Brain to Korea' project aims to attract 2,000 outstanding overseas talents, and the share of regional autonomous R&D is set to rise from 4.2% to 15%, paving the way for 50 K-unicorns.
The 'T (Trust)' strategy encompasses innovations in disaster safety R&D and investment systems. By integrating AI into disaster safety, the government aims to predict crisis signs in advance and strengthen a performance-based budget system that connects limit setting, budget allocation, evaluation, and performance dissemination.
The confirmed investment strategy will be reflected in the medium-term plan for national R&D projects, next year's investment direction, and the annual R&D budget expenditure limits. The government plans to operate a rolling plan that allows for adjustments in implementation plans in response to changes in domestic and international environments, ensuring that the five-year document does not remain stagnant.
Park In-kyu, head of the Science and Technology Innovation Bureau, stated, 'If the past year was a time to restore a shaken research ecosystem, the next four years must be a time to produce real growth results on that foundation. By focusing investments on mega-projects and the seven SEEDs while also ensuring stable investments in basic research, young researchers, and regional initiatives, we aim to demonstrate a transformed South Korea in research fields and the daily lives of citizens in four years.'
* This article has been translated by AI.
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