South Korea Seeks Nearly 3 Trillion Won for ICT R&D, Holds AI Policy and Data Talks
South Korea's science ministry proposed nearly 3 trillion won for ICT research and development next year, a 23.6% increase, as the budget and data ministries separately discussed AI-driven fiscal and statistical challenges with German and international officials.
The amount will be included in the Ministry of Science and ICT's 2027 R&D budget proposal of 39.5 trillion won. The ministry said it held an inaugural budget planning workshop with officials from research labs, the private sector and academia in central Seoul and decided to focus investment in five areas: the government's 'three mega projects,' next-generation AI technologies, AI transformation, securing future technologies and talent development.
For the 'tripolar mega projects,' the ministry earmarked 662.1 billion won for R&D in physical AI technologies, AI semiconductors and data centers. It allocated 384.9 billion won, the largest single amount, to securing 'full-stack' physical AI technology, from world foundation models to hardware components such as AI accelerators.
A total of 431.1 billion won will go to securing sovereign AI technologies, including 169.1 billion won for cybersecurity-related research. The ministry set aside 338.9 billion won for future technologies, concentrating on quantum technology and next-generation networks to build what it described as an 'AI expressway' connecting AI computing with networks. For talent development, it seeks to invest 354.4 billion won and will expand local hubs for joint research with global scholars while pushing forward with key technological standards related to AI.
Also on Tuesday, the Ministry of Planning and Budget said Vice Budget Minister Cho Yong-beom met with a visiting German parliamentary delegation led by Christian Gorke, acting chair of the Finance Committee at the Bundestag, Germany's lower house. They exchanged views on policy challenges facing both countries. Cho said fiscal policy needs to play a proactive role in bolstering growth potential and easing economic disparities amid an AI-driven industrial transformation, according to the ministry.
Cho added that South Korea is working to fundamentally address demographic challenges, including the low birth rate and aging population, and their impact on public finances. The two sides discussed setting budget priorities to use limited resources more effectively. Cho shared key aspects of South Korea's 2027 budget proposal, noting that Asia's No. 4 economy is pursuing both economic growth and fiscal soundness. Gorke said Germany is similarly seeking a balance between fiscal discipline and investment in future-oriented areas, and described the meeting as meaningful because the two countries could share fiscal policy directions and experiences, the ministry said.
The Ministry of Data and Statistics hosted a separate three-day workshop with the Organization for Economic Cooperation and Development and the Asian Development Bank, bringing together around 80 data experts from 25 countries in the Asia-Pacific region to discuss producing, managing and using data through AI. Participants exchanged ideas on harnessing statistics in the AI era through the Statistical Data and Metadata eXchange, a global standard that allows different systems to exchange data using standardized formats.
'In the AI era, the competitiveness of data depends not on its volume but on whether it is AI-friendly, allowing AI to understand the meaning and context of the figures,' Vice Data Minister Lee Myoung-ho said in opening remarks. He added that the workshop was intended to let countries share experiences and challenges and find new opportunities for governments and people to better use data. The ministry pledged to expand cooperation with the OECD, the ADB and other international organizations on data and statistics while responding to changes in global data standards in the AI era.
Editor's Summary South Korea's science ministry proposed nearly 3 trillion won for ICT R&D next year, with major allocations for physical AI, AI semiconductors, sovereign AI, future networks and talent. On the same day, the budget ministry discussed AI-driven fiscal and demographic challenges with a German delegation, while the data ministry opened an OECD- and ADB-backed workshop on AI-friendly statistics with experts from 25 Asia-Pacific countries.