Yoon Administration Allocates 1.58 Trillion Won Budget for Innovation Challenge R&D Development

The government has decided to allocate 1.58 trillion won (based on medium-term fiscal standards), which is 5% of the 2027 research and development (R&D) budget, to foster innovative and challenging R&D. Additionally, a blueprint has been prepared to significantly expand the R&D budget next year. Through this, the plan is to secure world-leading technologies and advance as a leader rather than a follower.

Lee Woo-il, Vice Chairman of the National Science and Technology Advisory Council, is presiding over the "7th Deliberation Meeting of the National Science and Technology Advisory Council" on the morning of the 15th at the National Science and Technology Advisory Council's main conference room in the Gwanghwamun Kyobo Building, Jongno-gu, Seoul.

The meeting was attended by Lee Jong-ho, Minister of Science and ICT, Park Sang-wook, Senior Secretary for Science and Technology, Ryu Kwang-jun, Director of the Science and Technology Innovation Bureau at the Ministry of Science and ICT, Kang Kyung-sung, 1st Vice Minister of Trade, Industry and Energy, and Oh Ki-woong, Vice Minister of SMEs and Startups. Photo by Ministry of Science and ICT

On the 15th, the National Science and Technology Advisory Council held the 7th deliberation meeting chaired by Vice Chairman Lee Woo-il, where they reviewed and approved the 'Plan for Systematizing the Innovative and Challenging R&D Fostering System (draft)' and discussed the '2025 National R&D Investment Direction and Standards (draft)'.

According to the 'Plan for Systematizing the Innovative and Challenging R&D Fostering System (draft)', the government will select projects aiming for world-class standards and capable of producing innovative ripple effects, designating and supporting them as the 'Innovative Challenging R&D Project Group.' Following the initial designation of 21 projects from six ministries?including the Ministry of Science and ICT's Limit-Challenge R&D Project, the Ministry of Health and Welfare's Korean-style ARPA-H Project, and the Ministry of Trade, Industry and Energy's Industrial Technology Alchemist Project?as innovative challenging projects, additional projects requested by individual ministries will be designated by the second quarter. To foster innovative and challenging R&D, the government will also discuss existing project progress, field-centered problem identification, new R&D directions, and inter-project linkages through the 'Innovative Challenging R&D Project Promotion Council,' a cooperative governance body breaking down barriers between ministries and between public and private sectors.

Specific budget targets have also been set. The investment target for innovative challenging R&D projects is set at about 1.58 trillion won, which is 5% of the total government R&D budget by 2027. Furthermore, to overcome the long-standing inertia that causes hesitation in starting projects when there are no precedents such as overseas cases, the budget structure will be reorganized. The government also plans to amend the National Research and Development Innovation Act to reduce the burden of audits.

The outline of the '2025 National R&D Investment Direction and Standards (draft),' which will serve as the starting point for a significant increase in next year's R&D budget, has also been prepared. The draft includes ▲ expansion of leading and challenging R&D investments ▲ discovery and investment in large-scale strategic projects and expansion of global cooperation to leap forward as a global R&D hub ▲ active allocation of resources to R&D that nurtures national talent, such as fostering young researchers and next-generation research leaders ▲ aggressive budget increases for AI, advanced bio, quantum technologies, and more. The draft reflects a wide range of opinions from the research community, industry, and academia to address the lack of communication with the field that surfaced during last year's R&D budget cuts.

Vice Chairman Lee urged, “Since the government's policy to invest firmly in excellent research is clear, each R&D ministry should prepare carefully by communicating closely with field researchers to ensure the R&D budget is expanded next year.”

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