Ministry of Science and ICT plans record W29.65tr budget, with AI spending surging 84%

The Ministry of Science and ICT plans to allocate a record 29.65 trillion won ($21.6 billion) in next year's budget, going all-in on securing AI and advanced technology capabilities.

The ministry will pour a record 9.4 trillion won into AI — the core engine of the nation's future potential — designating next year as the inaugural year of an "AI grand transformation."

About 800 billion won will go toward three mega-projects covering AI data centers, physical AI and semiconductors, while more than 1 trillion won will be channeled into the "Seven SEED Projects" targeting future technologies, laying the groundwork for long-term growth.

The Ministry of Science and ICT announced Tuesday that it had set next year's total budget at 29.65 trillion won, a 24.5% increase from the previous year and the largest in the ministry's history.

The AI budget surged 84.3% from the previous year to 9.4 trillion won — also a record — accounting for 57 percent of the government's total AI spending. The research and development budget was set at 14.1 trillion won, up 18.5% from the previous year.

Priority investment areas fall into three broad categories: AI grand transformation (9.4 trillion won), advanced technology acquisition (12.4 trillion won) and balanced growth (9,000 won).

The three mega-projects at the heart of the AI grand transformation initiative will receive 795.6 billion won. The AI data center project will focus on building an ecosystem centered on localizing key solutions and developing them into export industries. The physical AI project aims to release models deployable in industrial settings by next year. Investment in developing core technologies for next-generation semiconductors — including ultra-fine, stacked-layer and AI chips — will also be expanded to capture a leading position in global markets.

Securing top-tier AI models and technology will receive 5.59 trillion won, supporting the procurement of 10,000 GPUs, data resources and talent needed to develop a homegrown AI model. An additional 1.86 trillion won will go toward AI services, including "AI for All," a platform that gives the entire public free access to AI.

Alongside this, the ministry has earmarked 12.38 trillion won to secure advanced technologies in preparation for the post-AI era.

Of that, 1.34 trillion won will go to the "Seven SEED Projects," which aim to nurture future energy sources and frontier technologies including small modular reactors, nuclear fusion and renewable energy.

Some 5.64 trillion won will be invested in developing and commercializing national strategic technologies, with a focus on strengthening R&D capabilities to secure foundational technologies in biotech, semiconductors and other strategic fields. The number of research projects at government-funded research institutes will increase from 77 this year to 119 next year, and new institutional performance evaluations and bonuses will be introduced to improve the research environment.

To strengthen the R&D innovation ecosystem, 5.16 trillion won has been set aside to build career pathways for early-career and regional researchers, and to establish and expand gifted schools and research-focused universities, bolstering the pipeline of science and technology talent.

The balanced regional growth in science and technology will receive 853.7 billion won. The ministry will expand region-led R&D tailored to local industries and capabilities, and increase investment to address social problems closely tied to everyday life, including disasters, drug abuse and cyber threats.