[2027 Budget Proposal] Science Ministry Allocates Record 29.6 Trillion Won... AI Budget Up 84%

Focus on AI Transition, Advanced Technology, and Balanced Growth

Emphasis on Three Major Mega Projects, Frontier AI Models, and "AI for Everyone"

Expansion of Seven Major SEED Projects and Strategic Technology R&D

The budget proposal for the Ministry of Science and ICT in the 2027 government budget has been allocated at the largest scale in history. The Ministry plans to leverage this to drive the national transformation to artificial intelligence (AI) and secure advanced science and technology.

On September 1, the Ministry of Science and ICT announced that according to the 2027 budget proposal approved at the Cabinet meeting, its total allocated budget stands at 29.6476 trillion won. This represents an increase of 24.5% (5.8272 trillion won) compared to this year's supplementary budget.

The Ministry of Science and ICT emphasized that this is the largest AI and science technology budget ever. Key investment areas are ▲ a major transformation to AI, ▲ securing advanced technologies, and ▲ balanced growth. The focus is on supporting the government's recently announced 'Three Mega Projects' and 'Seven Major SEED Projects,' as well as broadly spreading the benefits of these policies.

AI Budget at 9.4 Trillion Won...Up 84.3% Year-on-Year

Deputy Prime Minister and Minister of Science and ICT, Baek Kang-hoon, delivers a welcoming speech at the AIDC Alliance inauguration ceremony held on July 29 at Lotte Hotel in Jung-gu, Seoul. Photo by Yoon Dongju

Of the 29.6476 trillion won allocated in next year’s budget, 14.1 trillion won is earmarked for research and development (R&D), and 9.4 trillion won is assigned to AI. Compared to this year, R&D has increased by 18.5%, and AI by 84.3%. By key investment sectors, 9.4 trillion won will go to the AI transformation, 12.4 trillion won will be dedicated to securing advanced technology, and 900 billion won is allocated for balanced growth.

Within the AI-related budget, 795.6 billion won is allocated for the government's 'Three Mega Projects.' Specifically, a 10MW-class testbed will be established for demonstration of AI data center (DC) solutions, and the AI industry ecosystem will be fostered through package R&D. In the physical AI sector, systems will be established to utilize high-quality data, and efforts will be made to develop general-purpose physical AI foundation models. Investment in core next-generation semiconductor R&D will also be increased.

Additionally, 5.5937 trillion won of the budget is set aside for securing top-tier, sovereign AI models. This comes amid calls for securing globally competitive frontier-grade AI models. To this end, support will be provided for infrastructure capable of housing around 10,000 GPUs, as well as data and talent acquisition. The development of lightweight AI models, on-device technology, and autonomous agents will also be promoted. Efforts to utilize AI for cyber security will continue, including the development of security-specialized models, AI autonomous defense systems, and dissemination of AI security services for small and medium enterprises.

However, the budget allocation plan related to the Sovereign AI Foundation Model Project (dubbed 'Dokpamo'), which recently concluded its second round of evaluations, was not mentioned. Deputy Minister Ryu Jemyeong noted last month when announcing the results of the second evaluation that the method of support for the final selected elite teams could be changed. A Ministry official explained, "For Dokpamo, we will establish detailed implementation plans going forward to ensure that technologies and talent are effectively connected, and these plans will be announced in the future."

For AI services and adoption, 1.8611 trillion won has been allocated. Through 'Everyone’s AI,' which is scheduled for official release at the end of this year, general-purpose AI chatbots and public AI agents will be provided. Accelerated regional AI transformation (AX) will take place focusing on four key regions: Daegyeong, Southwest, Jeonbuk, and Southeast. To drive AI-based scientific and technological innovation, projects such as the 'K-Moonshot Project' and the development of science and technology–specialized foundation models in fields like bio and mathematics will be promoted.

A budget of 1.1707 trillion won has been dedicated to realizing an AI-inclusive society. A 'Global AI Hub' will be established domestically to tackle global challenges such as climate and food security, and AI-centered universities will receive expanded support to innovate university-level AI education. By supporting the entire cycle from basic AI education to service development and demonstration for the entire population, a robust ladder for the growth of everyone's AI capabilities will be constructed.

12 Trillion Won for Securing Advanced Technologies...8.5 Trillion Won for Balanced Growth

President Lee Jae-myung is examining the model of the lunar orbit satellite Danuri ahead of the '7 Major SEED' report meeting on future growth engines held at the Blue House on the 12th. Photo by Yonhap News

A budget of 12.377 trillion won has been allocated for securing advanced technologies. Of this, 1.3439 trillion won will be invested in the Seven Major SEED Projects for fostering advanced technologies. These projects target ▲small modular reactors (SMRs), ▲nuclear fusion, ▲renewable energy, ▲quantum, ▲aerospace, ▲advanced bio, and ▲advanced supply chains.

For the development and commercialization of national strategic technologies, 5.6408 trillion won has been allocated. The government plans to strengthen R&D capabilities to secure source technologies in strategic fields such as bio, semiconductors, and nuclear power, and to expand strategic research projects. To bolster the R&D innovation ecosystem, 5.1636 trillion won will be invested to enhance basic research capacity, establish or expand science high schools, and research-oriented universities to secure scientific talent.

A budget of 853.7 billion won is allocated to promote balanced growth based on science, technology, and digital infrastructure. This includes expanding local autonomous R&D and strengthening the core functions of research clusters and corporate research institutes in special R&D zones. Investments will also be increased to address pressing social issues affecting daily life, such as disasters, drugs, and cyber threats.

Koo Hyukchae, the First Vice Minister of Science and ICT, stated, "The 2027 budget proposal is not merely a spending plan but a strategic investment plan to create opportunities for new growth and drive Korea’s great leap forward as an irreplaceable nation," adding, "We will do our utmost during the parliamentary review process to ensure that the policy objectives embedded in this budget proposal are fully realized."

This content was produced with the assistance of AI translation services.