[Inside Chodong] "We Must Protect the Rice Seeds"... What Must Not Be Forgotten Ahead of R&D Budget Restructuring

R&D Budget Restructuring Approaches
Should Not Be Driven Solely by Tax Savings

Research and Development (R&D) budgets have long been regarded as sacrosanct. This stems from the belief that a country advocating for a science and technology-driven nation should not be stingy when it comes to investing in research and development. Thanks to this, the total R&D investment relative to Gross Domestic Product (GDP) in South Korea has grown to the extent of ranking second in the world. However, despite the large scale of investment, the outcomes have not been satisfactory, giving rise to the term "Korea Paradox." This refers to the low productivity of R&D.

For these reasons, there have been calls among the scientific community, government, and budget officials in the National Assembly for a reassessment of the R&D budget. The rationale behind President Yoon Suk-yeol, the government, and the ruling party taking a tough stance on the R&D budget is the same. In his Liberation Day speech on August 15, President Yoon declared, "We will reform the distributive R&D system to promote scientific and technological innovation." On the 16th, the ruling party and government held a working-level meeting to discuss "measures to eliminate R&D inefficiencies," declaring that projects dominated by vested interests of specific groups, support projects with no competitiveness, projects with significantly low competition rates, and scattergun-style projects will be boldly restructured.

Examining the concerns of the ruling party and government, they argue that "the R&D budget increased indiscriminately under the previous administration," and that short-term issue-responsive R&D projects (materials, parts, and equipment increased 2.7 times; infectious diseases tripled) and R&D projects distributed to small and medium-sized enterprises (doubled) have surged. Moreover, as the budget increased, the number of R&D projects and tasks also rose, but the management capabilities of specialized research management agencies in each ministry were weak, and there were criticisms that a patronage-based allocation increased.

However, this process is worrisome because it is being conducted in a short period ahead of the submission of next year’s budget proposal to the National Assembly. This is because the "2024 R&D Budget Allocation Adjustment Plan," which experts deliberated on for several months, has been completely reexamined. Concerns about hasty and closed-door budget reviews are already being voiced for this reason.

The opposition party and others suspect that behind the series of R&D budget cuts lies a shortage of tax revenue. They argue that because less tax revenue was collected, the government had to find places to reduce the budget, and the R&D budget was caught in the crossfire. A senior opposition lawmaker who has raised issues about R&D project budgets since the previous administration said, "It is urgent to eliminate inefficiencies in R&D projects," but also pointed out, "The government, struggling with this year’s tax revenue shortfall, has not found a way to secure tax revenue next year, making large-scale budget adjustments inevitable." In fact, seeing government-funded research institutes uniformly cutting their budgets raises questions about the purpose and direction of dismantling the R&D cartel. Already, 25 government-funded research institutes, including the Korea Atomic Energy Research Institute and the Electronics and Telecommunications Research Institute, have submitted budget proposals with 20% cuts to the government.

Regarding this, the senior opposition lawmaker advised, "While adjusting execution methods, we must be careful about deciding which projects to keep or cut," adding, "The state invests because the technology is uncertain. If it were certain, the private sector would invest. Even if uncertain, if it is a future-leading technology, investment in it should be expanded."

There is a Korean proverb that says, "A farmer may starve to death, but he will not fail to sow seeds." Just as one cannot give up next year’s farming no matter how difficult the times, investment in the future must not be abandoned. Despite the tense situation on the Korean Peninsula and the massive defense budget, the R&D budget has continued to increase because of the belief that only science and technology can guarantee our future. The government and the National Assembly are urged to remember the heart of a farmer who, even if starving now, protects the rice seeds for next year’s farming.

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