Next Year's R&D Budget Keyword 'Corona'.. 117% Increase in Therapeutic Development

[Asia Economy Reporter Hwang Junho] The government will expand next year’s research and development budget by 117.2% compared to this year to develop treatments and vaccines for the novel coronavirus infection (COVID-19). Additionally, the Korean New Deal budget will increase by 45.6%, the three major R&D focus projects including Biohealth, Future Cars, and System Semiconductors will see a 25.5% increase, and the budget for securing technology in materials, parts, and equipment (SoBuJang) will be expanded by 22.3%.

The Ministry of Science and ICT announced this after finalizing the allocation plan for next year’s national R&D project budget totaling 21.6 trillion KRW at the 11th National Science and Technology Advisory Council meeting, aimed at overcoming the COVID-19 crisis and expanding future growth potential.

Full Effort to Secure COVID-19 Treatments and Vaccines

The most notable part of next year’s budget is the infectious disease response budget. Under the firm belief that the government will take full responsibility for developing COVID-19 treatments and vaccines, a total of 377.6 billion KRW will be invested. This is a 117.2% increase compared to this year. Specifically, 111.4 billion KRW will be newly invested in candidate substance optimization and clinical support. 25.4 billion KRW will be allocated for the localization of quarantine supplies and equipment, and the advancement of core technologies, while 10.2 billion KRW will be newly spent to build a platform for responding to new infectious diseases.

The Korean New Deal budget to prepare for the post-COVID era also increased by 45.6%. A total of 2.46 trillion KRW will be invested to transition to a leading economy. The budget for the Digital New Deal will be expanded by 48.9% to 1.5457 trillion KRW. The budget for creating the DNA ecosystem?data, network (5G), and artificial intelligence?is set at 1.06 trillion KRW (a 50.5% increase), and the budget for fostering non-face-to-face industries is set at 200 billion KRW (a 60.7% increase). The Green New Deal will receive 912.5 billion KRW, a 40.4% increase from the previous year. The government explained that this budget aims to create new growth opportunities by integrating data, AI, and 5G+ across all industries including manufacturing, healthcare, construction, and agriculture and fisheries.

In addition, R&D projects will be conducted on blockchain technology to improve data reliability, post-deep learning technology to overcome the limitations of existing AI technology, non-face-to-face logistics using robots, ultra-realistic sports viewing, and digital therapeutic development.

Strengthening SoBuJang Technology, Expanding SME Vouchers

2.1 trillion KRW will be invested in achieving technological independence in SoBuJang, which is 22.3% more than this year. This budget is to respond to the global supply chain restructuring caused by COVID-19 and to develop promising future core technologies. In addition to the 100 key strategic items selected for technological independence due to Japan’s export restrictions last year, the government will support rapid technological independence for additional items affected by supply chain restructuring. A testbed will be established and reliability evaluations supported to ensure that R&D outcomes for each item can lead to mass production.

The budget to reduce the R&D burden on small and medium-sized enterprises (SMEs) has also been expanded. A total of 2.4107 trillion KRW, a 7.6% increase from this year, will be invested. Through this, the customized voucher program that allows SMEs to receive technology and equipment support from universities and government-funded research institutes will be greatly expanded. Policies will also be implemented to support SMEs’ technological independence by linking their technologies to public sector procurement or private investment.

The budget for the three major R&D focus areas?Biohealth, Future Cars, and System Semiconductors?will be 2.15 trillion KRW. Biohealth will receive 1.4974 trillion KRW to support the entire cycle of new drug and medical device technology development, clinical trials, approvals, and commercialization. Support will also be provided for the collection and utilization of medical and health data applicable to medical sites.

In the Future Cars sector, 385.3 billion KRW will be invested to comprehensively support technology development, demonstration, and regulatory improvements for early commercialization of fully autonomous driving (Level 4) by 2027. System Semiconductors will receive proactive investment of 122.3 billion KRW to secure next-generation technologies such as AI semiconductors.

Expansion of Creative Basic Research Budget

The budget for creative and challenging basic research has also been expanded. A total of 2.35 trillion KRW will be invested, an increase of 320 billion KRW compared to the previous year. Investment in talent development considering social and economic structural changes such as post-COVID will also receive 2.15 trillion KRW.

Finally, investments will be made to improve the quality of life that citizens can feel, such as disaster and safety, and living environment improvements. Newly, major R&D budgets have been allocated to the Korea Customs Service and the Cultural Heritage Administration, which are closely related to citizens’ lives but had been R&D blind spots. Budgets for ministries responsible for public safety such as the Ministry of the Interior and Safety, the National Police Agency, and the Coast Guard have also been significantly expanded.

Kim Seongsu, head of the Science and Technology Innovation Headquarters, emphasized, "To turn the COVID crisis into an opportunity, we strategically invest limited resources in essential areas such as infectious diseases and the Korean New Deal. Despite the difficult fiscal conditions caused by the economic crisis, next year’s R&D investment has increased significantly by more than 9.7%. It is now time to demonstrate crisis-overcoming capabilities that citizens can feel through commensurate performance achievements."

This content was produced with the assistance of AI translation services.