S. Korea Announces Record KRW 35.3T R&D Budget, AI Focus

SEOUL, South Korea — The administration of President Lee Jae-myung has allocated KRW 35.3 trillion (US$25.5 billion) for research and development in 2026, marking an increase of more than 20 percent from previous years, the government said Thursday.

President Lee announced the budget during a meeting of the National Science and Technology Advisory Council.

Officials described the allocation as the largest R&D investment in South Korea’s history.

Lee cited “various challenges in recent years” during the meeting, according to Jung-woo Ha, chief of staff for the Presidential Office’s AI Future Planning division.

The budget makes artificial intelligence development a primary focus.

The government plans to develop independent AI foundation models and specialized AI applications, with investments in graphics processing units, network infrastructure, and data systems.

Planned AI initiatives include domestically produced neural processing units, artificial general intelligence, physical AI, and scientific AI technologies, according to officials.

The government also plans to establish AI-focused universities and graduate programs beginning in 2026.

Basic research funding will expand to support more than 15,000 individual research projects.

Officials said 2,700 grassroots research projects eliminated in previous budget cycles will be restored.

The administration plans to eliminate the Project-Based System, which previously required researchers to secure their own personnel costs.

A performance-based incentive program will replace the current system, officials said.

Energy sector investments will focus on developing solar cells and wind power systems.

Strategic technology areas receiving funding include synthetic biology, battery technology, and robotics, with a five-year goal for technological independence through public-private partnerships.

Regional AI projects are set for Daegu, Gyeongnam, Jeonbuk, the Busan-Ulsan-Gyeongnam area, and Gwangju.

Defense technology funding will support the development of the K-9 self-propelled howitzer and the Cheongung missile system.

The government said it will release a “Republic of Korea AI Action Plan” under the National AI Strategy Committee.

The plan will include infrastructure construction, international talent recruitment, and civilian AI applications.

Officials said budget execution will be monitored for effectiveness, with cooperation from relevant ministries and program integration planned to strengthen performance management.