South Korea has announced plans to allocate 830 billion won (around US$561.2 million) in 2026 for the research and development of industrial technologies, aiming to strengthen the country’s global standing in high-tech sectors. The Ministry of Trade, Industry and Energy will channel this funding into areas such as semiconductors, mobility, quantum computing, and artificial intelligence (AI) amid intensifying global competition. To maximize the impact of this investment, the ministry will work closely with industry experts to assess and fine-tune its R&D strategies.
This investment comes at a time when venture funding in South Korea’s deep tech sectors has reached unprecedented levels. The Ministry of SMEs and Startups reported that venture capital in the country’s top 10 deep tech industries soared to 3.6 trillion won (US$2.4 billion) in 2024, a 34% increase from the previous year. Bio Healthcare and AI are leading this surge, accounting for nearly 60% of the total deep tech investment.
Since last year, the South Korean government has launched 124 research and development (R&D) projects focused on advanced industries, with a combined investment of 6.7 trillion won. These initiatives aim to drive technological advancements across various sectors and maintain the country’s position at the forefront of global industry.
Oh Seung-cheol, the deputy minister of industries and enterprises, says, “In the face of uncertain domestic and global conditions, the key breakthrough lies in technology and innovation,” emphasizing the vital role that innovation will play in navigating challenging times.
Artificial Intelligence (AI) has seen the largest year-on-year investment growth within the deep tech sectors. 2024 AI investment increased by KRW 415.8 billion compared to the previous year.
Notably, software development and supply led the AI investment. At the same time, two other segments experienced remarkable growth: AI construction, management, and related information services, which grew by 113.9%, and AI computation and processing parts/device manufacturing/design, which skyrocketed by an impressive 290.9%.
The deep tech startup ecosystem has also seen an influx of funding, with 722 startups—75.1% of those funded in 2024—participating in government-backed initiatives, such as the mother fund programs and startup support projects. These startups were able to secure substantial investments, contributing to the overall increase in venture funding for the sector.
Minister Oh Young-joo highlighted the government’s plans to promote deep-tech innovation in South Korea. She emphasized that the Ministry of SMEs and Startups has fueled investment in the deep tech sector, particularly through the mother fund.
Minister Oh announced, outlining the government’s strategic initiatives, that the government will systematically implement the ‘Bioventure Innovation Ecosystem Creation Plan’ in January 2025 and the ‘AI Utilization and Diffusion Plan’ in February 2025.
The launch of these initiatives is expected to further enhance the country’s deep tech landscape, creating opportunities for startups to thrive and leading to new breakthroughs in critical industries.
