Industry Ministry to Focus 2027 R&D Budget on M.AX and "5 Regions, 3 Specializations" Growth Engines

Strategic Planning and Investment Council Discusses Budget Direction with Industry, Academia, and Research Institutes
Numerous New Initiatives Included, Covering AI-Driven Manufacturing, Supply Chain Response, and Advanced Materials

Yonhap News Agency

The government is expanding its strategic investments in the Manufacturing Artificial Intelligence Transformation (M.AX) initiative and the "5 Regions, 3 Specializations" growth engines.

According to the Ministry of Trade, Industry and Energy, on April 29, the "2nd Strategic Planning and Investment Council of 2026" was held at the Korea Chamber of Commerce and Industry in Seoul, presided over by Vice Minister Moon Shinhak, to discuss the draft budget for industrial R&D in 2027.

The ministry prepared the budget plan focusing on the three main investment directions previously outlined: the "5 Regions, 3 Specializations" growth engines, M.AX, and strengthening the industrial ecosystem.

In particular, to concentrate on "genuine R&D" projects with high potential for results, the ministry carefully selected new projects, restructured existing ones based on performance, and integrated smaller projects where appropriate.

In the "5 Regions, 3 Specializations" growth engines sector, the plan includes package-type projects that combine regional technology development, infrastructure, and talent cultivation, as well as technology support projects to help local high-tech industries transition to greener operations.

In the M.AX sector, various initiatives will be promoted to accelerate the adoption of artificial intelligence in manufacturing. Key examples include developing manufacturing AI models that leverage the expertise of skilled workers, full-stack AI factory technologies that optimize entire production processes, the establishment of AI systems for workplace safety, and the development of productivity-enhancing technologies tailored to industries such as shipbuilding, biotechnology, and distribution.

For strengthening the industrial ecosystem, new projects include next-generation batteries for humanoid robots, localization of advanced aircraft engine materials and components, and the development of specialty conversion technologies for the chemical industry. In addition, the budget covers nurturing star engineers, advancing industrial technology achievements, and supporting business transformation for companies shifting to new industries.

Projects are also planned to address recent supply chain instability caused by the Middle East war and the ongoing trend toward eco-friendly transitions. New initiatives include the development of pre-processing technology and processes for heavy and extra-heavy crude oil, alternative materials for naphtha, and support projects for the development and demonstration of emission reduction technologies in carbon-intensive industries.

Prior to the meeting, 14 experts from fields such as artificial intelligence, robotics, semiconductors, secondary batteries, and biotechnology were newly appointed as private sector committee members.

Vice Minister Moon stated, "As global competition for technological supremacy intensifies, it is vital to make strategic investments and ensure swift execution to secure industrial competitiveness. We will actively incorporate private sector feedback to deliver technological innovation that can be felt on the ground."

Meanwhile, the 2027 industrial R&D budget will be finalized after review by the budget authorities and the National Assembly.

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