South Korea’s Ministry of Science and ICT (MSIT) was allocated a higher R&D budget for 2025, with a focus on what it refers to as pioneering R&D, AI and digital innovation.

The ministry’s overall R&D allocation is up 16.1 per cent year-on-year to KRW9.7 trillion ($7.3 billion), compared with an 11.3 per cent cut this year.

In a statement, MSIT explained it allocated KRW4.3 trillion of its total R&D budget to the pioneering programme, up 18.9 per cent year-on-year, as it transitions from “a catch-up strategy”.

Its primary focus is on “securing international leadership” in AI and semiconductors, advanced biotechnology and quantum technology, MSIT stated.

The budget for AI and digital innovation increased 4.8 per cent to KRW880 billion.

Outlay for pioneering AI semiconductor-based data centre technologies will increase 33.3 per cent to KRW10 billion, with backing for related demonstrations up 29.8 per cent to KRW24.4 billion.

Open RAN testbed funds are up fourfold to KRW3.9 billion.

Fresh funding of KRW6.4 billion was allocated for development of ultra-high-density semiconductor stacking technology.

The ministry added it has worked to reduce inefficiencies in R&D and improve outdated regulations by eliminating preliminary feasibility studies for projects to allow for faster responses to technological changes.

In April, South Korean President Yoon Suk Yeol vowed to spend KRW9.4 trillion on the domestic AI sector over the next four years.