Bigger Budget Signals Shift Toward Long-Term Tech Competitiveness
The Ministry of Science and ICT said Thursday that the South Korean government will invest 8.12 trillion won ($5.6 billion) this year in research and development across science and information and communications technology, marking a sharp increase in public funding for core technology sectors.
The budget represents a 25.4 percent rise from last year, a policy shift toward stronger state-backed investment as global competition in advanced technologies intensifies. Of the total amount, 6.44 trillion won will be allocated to science and technology research, while 1.68 trillion won will be directed toward ICT-related R&D, according to the ministry.
Policy Context: Growth, AI, and Strategic Technologies
Officials said the expanded R&D budget is designed to support innovation-led growth at a time of prolonged global economic uncertainty and weak growth prospects. The increase also aligns with South Korea’s longer-term ambition to become one of the world’s top three artificial intelligence powers, as competition in AI, semiconductors, and next-generation computing accelerates.
Rather than concentrating funding in a single area, the government is spreading investment across foundational research, applied technologies, and workforce development, reflecting concerns about both technological self-reliance and industrial resilience.
Science and Technology: Future Fields and Industrial Foundations
Within the science and technology portion of the budget, the government plans to expand funding in areas seen as critical to long-term competitiveness, including:
- Biotechnology and quantum science, aimed at building capabilities in future-oriented research
- Core industrial technologies, such as semiconductors and secondary batteries, which underpin key export industries and supply-chain security
Officials said strengthening these areas is essential not only for growth but also for maintaining strategic autonomy in globally contested sectors.
ICT Spending Focuses on AI and Talent Shortages
In the ICT sector, policy emphasis will be placed on accelerating AI-driven transformation across industries. The ministry said funding will be used to:
- Develop so-called AI transformation engines that can be applied across sectors
- Expand programs to train highly skilled AI professionals, addressing persistent talent shortages
The approach reflects growing recognition that hardware and software investment must be matched with human capital to deliver real economic impact.
Building a More Resilient Innovation Ecosystem
Officials said the combined strategy—supporting basic research, applied development, and workforce training—is intended to create a more resilient innovation ecosystem. By linking early-stage research with commercialization and talent pipelines, the government aims to narrow the technology gap with leading nations such as the United States and China.
The ministry framed the budget increase as a structural response rather than a short-term stimulus, signaling a sustained commitment to technology-led growth.
Data Security Scrutiny Highlights Regulatory Stance
Separately, Science Minister Bae Kyung-hoon criticized Coupang over its handling of an ongoing government investigation into a large-scale data breach.
His remarks followed the company’s claim that only about 3,000 user accounts were affected, a significant revision from its earlier disclosure that more than 33.7 million accounts may have been exposed.
Government Pushes Back on Corporate Claims
The ministry rejected Coupang’s explanation, saying the company had drawn conclusions before the investigation was completed.
“Claiming that only 3,000 accounts were affected and later deleted is extremely reckless,” Bae said, adding that the assessment appeared to rely heavily on a suspect’s testimony.
The comments underscore the government’s increasingly firm stance on data security and corporate accountability, as digital infrastructure and platform services become more central to the economy.
