[2023 Budget] Government R&D to Surpass 30 Trillion Won for the First Time Next Year... "Securing Ultra-Leading Technology"

Ministry of Science and ICT Announces Detailed 2023 Budget Plan
Department Budget at 18.8 Trillion KRW, Up 2.3% from Last Year
Government R&D at 30.7 Trillion KRW, Increased by 0.9 Trillion KRW from This Year
3.0% Growth, Significantly Slowed Compared to Recent Years

[Asia Economy Reporter Kim Bong-su] The government's national research and development (R&D) budget for next year will surpass 30 trillion won for the first time. However, unlike the significant increases over the past five years, the budget has effectively stagnated or been reduced, as it is lower than the inflation rate.

On the 31st, the Ministry of Science and ICT announced that the total government R&D budget for next year, to be submitted to the National Assembly next month, is set at 30.6574 trillion won, surpassing 30 trillion won for the first time in history. This amount is about 900 billion won (3.0%) higher than this year's 29.777 trillion won. The Ministry of Science and ICT also allocated about 18.8 trillion won as the ministry's budget for next year, an increase of 400 billion won (2.3%) compared to this year's 18.4 trillion won.

The Ministry plans to invest the 18.8 trillion won ministry budget in four major focus areas. First, 2.2 trillion won (a 12.9% increase from this year) will be invested to secure future innovative technologies. This budget aims to secure a super-gap over competing countries in key strategic technologies such as semiconductors, nuclear power, and 6G, and to jointly develop advanced strategic technologies like quantum and bio through public-private cooperation. Investment in the private space industry will be strengthened to promote the full-scale entry into a private-led space economy era, and the repeated launches of Nuriho, which successfully launched in June, will be carried out without disruption. Additionally, 7.8 trillion won (a 6.8% increase) is allocated for talent development and basic research support. The ministry will secure top-tier talent in strategic technology fields through public-private cooperation to lead the era of technological supremacy, promote qualitative leaps in basic research by supporting specialization by academic fields and promising unexplored areas, and expand strategic international joint research with technologically advanced countries.

For the full-scale digital innovation, 1.9 trillion won, a 9.5% increase from this year, will be spent. To transform the government's working methods, an AI- and data-based digital platform government will be established, and world-class digital new technologies and new industries will be fostered to spread digital innovation across all economic and social sectors. To ensure technology spreads for everyone's happiness, 6.7 trillion won, a 10.2% increase from this year, has been allocated. This will enhance digital accessibility for vulnerable groups and spread R&D outcomes to industry, daily life, and regions. Investment will also be expanded in technology innovation for carbon neutrality, including carbon capture, storage, and utilization, hydrogen, and nuclear fusion.

The government R&D budget executed by government-funded research institutes and university research institutions is set at 30.6574 trillion won, an increase of 900 billion won (3.0%) from the previous year. Accordingly, the government R&D budget is expected to surpass 30 trillion won for the first time next year. However, the growth rate has significantly decreased compared to recent years. The government R&D budget showed substantial growth rates of 18.0% (total 24.2 trillion won) in 2020, 13.1% (total 27.4 trillion won) in 2021, and 8.7% (total 29.8 trillion won) in 2022. This government R&D budget will allocate about 1.1 trillion won (an 8.2% increase from the previous year) to secure super-gap strategic technologies such as semiconductors, secondary batteries, and next-generation nuclear power plants. By sector, investments will focus on semiconductors with 438 billion won (22.3% increase), secondary batteries with 96.6 billion won (27.6% increase), next-generation nuclear power plants with 29.7 billion won (50.0% increase), and 5G/6G with 194.5 billion won (4.3% increase). Additionally, 2.4 trillion won, an 11.3% increase from the previous year, will be allocated for research in future leading technologies such as space and aviation, quantum, advanced bio, artificial intelligence (AI), and robotics. Specifically, research funding has significantly increased in space and aviation with 833.8 billion won (12.5% increase), quantum with 95.3 billion won (36.3% increase), advanced bio with 695.8 billion won (9.1% increase), AI and robotics with 761.3 billion won (12.1% increase), and cybersecurity with 130.5 billion won (8.8% increase).

For the activation and establishment of digital transformation research, 2.5 trillion won (an 18.5% increase) has been allocated to support the promotion of digital transformation through the development of core digital technologies and the integration of digital technologies in industrial and public sectors. The carbon neutrality sector has been allocated 2.3 trillion won, a 2.6% increase from the previous year. This will accelerate the green transition based on technological innovation in clean energy, low-carbon ecosystems, and resource circulation. For science and technology workforce development, 580 billion won (a 7.0% increase) has been allocated. The Ministry of Science and ICT's 2023 budget plan and fund operation plan will be submitted to the National Assembly on the 2nd of next month after approval at the Cabinet meeting today and will be finalized through the plenary session at the end of the year.

Minister Lee Jong-ho of the Ministry of Science and ICT said, "We focused on securing a super-gap in strategic technology fields where we are ahead, such as reinforcing outdated and missing equipment in semiconductor research sites, developing next-generation small modular reactors, and the world's first commercialization of 6G." He added, "We will also concentrate our capabilities on the early establishment of a digital platform government so that simple and repetitive public tasks are automated, and data from the private and public sectors are interconnected to provide services to the public."

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