Next Year's Industry and Energy R&D Budget 5.6 Trillion Won... Largest Ever Allocated

The government has allocated a record-high budget of 5.5701 trillion KRW for research and development (R&D) in industrial and energy sectors such as semiconductors, secondary batteries, and displays for next year.

On the 5th, the Ministry of Trade, Industry and Energy held a meeting at the Korea Chamber of Commerce and Industry with Park Seong-taek, the first vice minister, along with chief technology officers (CTOs) of companies, researchers from universities, specialized research institutes, and heads of professional organizations to explain the draft R&D budget for next year and investment directions.

The 2025 industrial and energy R&D budget is set at 5.5701 trillion KRW, a 9.6% increase compared to this year’s 5.0802 trillion KRW. Considering loan-type R&D support included in the general budget (120 billion KRW in 2025) and the transfer of some projects to the Space Aviation Agency, the Ministry explained that this is an all-time high, increasing by 72.2 billion KRW from 2023.

By sector, to secure ultra-gap technologies in six advanced strategic industries including semiconductors, secondary batteries, and displays, as well as the supply chain of materials, parts, and equipment (Sobeojang), the budget was increased by 160 billion KRW and 84 billion KRW respectively from last year, allocating 1.26 trillion KRW and 1.82 trillion KRW respectively. For world-first and top-level technology development centered on digital and eco-friendly transitions, 120 billion KRW was added to reach 660 billion KRW, and 29.7 billion KRW was increased to invest a total of 260 billion KRW in R&D for nurturing human resources.

Regional innovation, growth ladder, and commercialization R&D, which were reduced due to structural reforms last year, have been reorganized in terms of support methods. The regional innovation projects will no longer be scattershot support at the regional level but will invest selectively based on excellence in super-regional specialized industries considering the industrial landscape.

The growth ladder projects supporting companies will focus investments on strategic fields such as semiconductors and adopt a method that supports more highly innovative tasks. Commercialization support will expand private-led investment and loan-type methods, including the establishment of new projects linked to corporate venture capital (CVC) investments and the expansion of loan projects for advanced industrial technology innovation.

Vice Minister Park stated, “Starting with the Alchemist II project that will change the industrial landscape, we will support more than 10% of all new R&D for challenging research to overcome industrial challenges, reducing the burden of failure on the private sector. For excellent research institutions, we will guarantee 100% autonomy in forming joint research institutions, changing goals, settlement, and research fund execution, and continue innovations to improve the efficiency of industrial and energy R&D.”

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