S. Korea's nuclear R&D budget hits record high amid AI energy race

The government plans to raise its energy technology R&D investment to a record high next year as it moves to secure a competitive edge in the global AI race. The nuclear R&D budget is set to exceed 380 billion won ($280 million) for the first time, while funding for small modular reactors will jump more than 50 percent. More than 280 billion won will also be channeled into nuclear fusion R&D.

The Ministry of Science and ICT's energy technology R&D budget for next year totals 733.6 billion won, up 48 percent from this year and the largest on record, according to data submitted to Democratic Party of Korea lawmaker Hwang Jeong-a of the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee.

The figure is roughly 2.4 times the level seen in 2024, when R&D budgets were sharply cut. The increase reflects growing recognition that stable energy supply is a decisive factor in national AI competitiveness, as the spread of generative AI and the buildout of AI data centers are expected to drive rapid growth in electricity demand.

The nuclear R&D budget alone stands at 386.4 billion won, up 16.6 percent from this year — also a record high.

Investment in small modular reactors, which the government is developing as a next-generation strategic technology, is leading the increase. The SMR R&D budget, included in the government's "Seven SEED Projects" initiative, jumped 55.7 percent to 127.5 billion won. SMRs are next-generation nuclear reactors designed to be smaller and more flexible than conventional large-scale plants while offering enhanced safety, and are drawing attention as a future energy source capable of meeting the massive power demands of AI data centers and similar facilities.

Nuclear fusion investment is also expanding sharply. The nuclear fusion R&D budget for next year stands at 284 billion won, more than double this year's allocation. Renewable energy R&D funding rose 64 percent to 21.5 billion won. Investment is concentrating on the three energy pillars — SMRs, nuclear fusion and renewable energy — all included in the government's Seven SEED Projects.

"Energy technology in the AI era is a national strategic asset, and national power will be determined by electricity," Hwang said. "Nuclear power, renewable energy and nuclear fusion must all be addressed in the language of future competitiveness and practical application."