The Ministry of Science and ICT has proposed a budget of 29.6 trillion won for 2027, a 24.5% increase from this year. Of this amount, 9.4 trillion won is earmarked for AI transformation, representing about one-third of the total budget.
On September 1, the Ministry announced that the '2027 Budget Proposal' was approved during a Cabinet meeting.
The ministry's budget has been steadily increasing, from 21 trillion won in 2025 to 23.8 trillion won this year, and now to 29.6 trillion won in 2027, reflecting a growing annual increase. The R&D budget has also risen during this period, from 9.7 trillion won to 11.9 trillion won, and then to 14.1 trillion won.
The budget is divided into three main areas: 9.4 trillion won for AI transformation, 12.4 trillion won for advanced technology acquisition, and 900 billion won for supporting balanced growth. The AI transformation budget saw the largest increase at 85%, while advanced technology acquisition grew by 15.8% and balanced growth support increased by 14.8%.
Major Mega Projects and Top-tier AI Models
Of the 9.4 trillion won allocated for AI transformation, 795.6 billion won is designated for three major projects: AI Data Centers (AIDC), Physical AI, and next-generation semiconductors. The AIDC aims to establish a 10MW testbed to secure domestic solution references early, with 878 billion won allocated for cluster development and industry cultivation, and 1.155 trillion won for developing materials and cloud technologies. Physical AI will receive 400 billion won for training center construction, 550 billion won for core technology development, and 260 billion won for logistics demonstrations in collaboration with the Korea Post. The next-generation semiconductor initiative includes 250 billion won for ultra-fine and layered semiconductor technology development and 900 billion won for securing K-AI semiconductor full-stack references.
More than 5.5937 trillion won is allocated for the top-tier AI models and technology acquisition, which encompasses independent AI models, next-generation AI technologies, and AI security. The budget for expanding GPU resources for independent AI model development will increase from 2.0841 trillion won this year to 3.850 trillion won next year, while support for enhancing data competitiveness will rise from 300 billion won to 800 billion won. In the AI security sector, new allocations include 550 billion won for developing 'AI Cyber Shield Dome' technology and 700 billion won for supporting AI threat response services for small and medium-sized enterprises.
Expanding AX and Inclusive AI Society
The 'AX Expansion' initiative, which includes Everyone's AI, Science and Technology x AI, and Regional Industry AX, has been allocated 1.8611 trillion won. A new allocation of 250 billion won will support universal access to national AI chatbots and public AI agents, while regional AX budgets for Daegu-Gyeongbuk, the Southwest, Jeonbuk, and the Southeast will increase from 177 billion won this year to 334.5 billion won next year.
In the Science and Technology x AI sector, the operating budget for the National Science AI Research Center will increase from 400 billion won to 618 billion won, and 578 billion won will be newly allocated for supporting integrated analysis of AI-based bio-data and materials. The 'Inclusive AI Society' initiative, which focuses on global AI, AI talent, and AI capability enhancement, has been allocated 1.1707 trillion won, with plans to increase the number of AI-centered universities from 18 this year to 67 next year. The AI budget from the Ministry has surged from 1.5 trillion won in 2025 to 5.1 trillion won in 2026, and now to 9.4 trillion won in 2027, more than six times in just two years.
Advanced Technology Acquisition and Government R&D Scale
The budget for advanced technology acquisition is set at 12.4 trillion won, with 1.3439 trillion won allocated for the 'Seven SEED Projects' encompassing future energy, future exploration technologies, and advanced supply chains. The Small Modular Reactor (SMR) aims to begin construction by the 2030s for non-light water types and by 2035 for light water types, with 1.601 trillion won allocated for developing core nuclear fusion technologies and establishing demonstration infrastructure.
In the quantum sector, 175 billion won is allocated for domestic quantum computer manufacturing challenges, while 195 billion won is designated for the 'Brain-Link Initiative' to develop brain-computer interfaces in advanced bioengineering. The largest allocation of 5.6408 trillion won is for national strategic technology development and commercialization, which includes basic research, research institutes, and commercialization of research outcomes. The number of strategic research projects will increase from 77 this year to 119 next year, and the proportion of research funding from contributions will rise from 60.3% to 70.2%, restructuring the research system to be mission-oriented.
For strengthening the R&D innovation ecosystem, which includes basic research, science and technology talent, and international cooperation, 5.1636 trillion won is allocated, increasing the number of individual basic research projects from 15,300 to 18,000, and expanding the number of scholarships for science and engineering students from 2,920 to 5,140.
Balanced Growth Support and Overall Government R&D Scale
The balanced growth support budget of 900 billion won is divided into regional R&D innovation (413.8 billion won), social problem-solving (102.8 billion won), and public perception (337.1 billion won). Regional R&D innovation will focus on expanding local autonomous R&D and strengthening the core functions of research and development special zones, with 151.2 billion won newly allocated for supporting scientific and technological innovation in the four major regions. Social problem-solving will focus on developing technologies to address disasters, drug issues, and cyber threats, while public perception will enhance scientific culture services and distribute information and communication devices to vulnerable groups.
The overall government R&D budget is set at 39.5 trillion won, reflecting an 11.2% increase, with the major R&D budget allocated and adjusted by the Science and Technology Innovation Headquarters amounting to 33.8 trillion won, an increase of 11.5%. The government has also shortened the review period for preliminary feasibility studies of large R&D projects costing over 100 billion won from two years to three months, allowing for timely investment in necessary technologies.
* This article has been translated by AI.
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