We will expand R&D investment to create new energy industries, including future growth engines such as 5G mobile communications and smart automobiles, which have a high potential for early commercialization. We will also increase the scale of investment and the number of beneficiary companies so that small and medium-sized enterprises can become the leading players in a dynamic innovation economy. In particular, we plan to strengthen strategic investments in the cultural service industry, which is emerging as a new growth engine, and in promising bio sectors.

Specifically, 69.9 billion won was allocated in 2016 to build the pan-governmental Giga Korea, an increase of 70.5% compared to this year. In addition, the proportion of investment in small and medium-sized enterprises will be expanded to 18% next year, and 47.7 billion won will be spent on cultural technology research and development (Ministry of Culture, Sports and Tourism), an increase of 12.4%.

We plan to expand investment in basic research to create future knowledge and secure core technologies, and to support the stable establishment of infrastructure such as the Science Belt and the timely implementation of large-scale space projects. We will also strengthen investment in core defense technologies, disaster relief including infectious diseases, and safety-related fields. Perhaps due to the aftermath of MERS, which caused a shock this year , 41 billion won has been allocated to the development of crisis response technologies for infectious disease management (Ministry of Health and Welfare), an increase of 33.1%.

Last March, the Ministry of Science, ICT and Future Planning [at] Pangyo Techno Valley, Bundang-gu, Seongnam-si, Gyeonggi-do
A scene of the 'K-ICT Strategy Presentation for the Realization of the Creative Economy' being held at the R&D Center.

An official from the Ministry of Science, ICT and Future Planning stated, "During the deliberation by the National Science and Technology Council, the budget for major inter-ministerial research and development was reduced by 2.3% compared to the previous year. Compared to other sectors such as SOC, the R&D sector maintained the previous year's level in order to promote dynamic economic innovation, despite difficult economic conditions."

Ministry of Science, ICT and Future Planning budget reduced compared to last year

The Ministry of Science, ICT and Future Planning's budget proposal for 2016 was set at 14 trillion 331.2 billion won, a decrease of 7.1 billion won from this year (14 trillion 338.3 billion won).

The Ministry of Science, ICT and Future Planning's R&D budget is 6.4999 trillion won, a decrease of 13.9 billion won from this year (6.5138 trillion won), which is 34% of the total government R&D (18.9363 trillion won).

The Ministry of Science, ICT and Future Planning stated that the reason for the budget reduction was "a slight decrease due to the large scale of projects ending this year (a total of 12 projects worth 180.7 billion won) and the alignment with the fiscal year."

The Ministry of Science, ICT and Future Planning plans to continue expanding investment in key areas, such as revitalizing global regional innovation ecosystems to realize a dynamic creative economy, strengthening future readiness based on science and technology including basic and fundamental research and space development, and improving the fundamental structure and revitalizing the ICT industry through K-ICT.

I hear they are focusing on creating global innovation clusters to foster star ventures...

Accordingly, next year, key new projects will be significantly expanded, including the creation of a global innovation ecosystem (14 billion KRW), Korean-style I-Corps (3.7 billion KRW), lunar exploration (10 billion KRW), unmanned vehicles (6 billion KRW), establishment of an IoT demonstration complex (3.5 billion KRW), foundation building for revitalizing the fintech industry (3 billion KRW), and training of leading personnel for new regional industries (10 billion KRW).

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▲ Major New Projects of the Ministry of Science, ICT and Future Planning for 2016 (Unit: 100 million KRW)

First, regarding the creation of a global innovation ecosystem, in order to spread the creative economy nationwide and accelerate the creation of tangible results, we plan to strengthen the support for idea and technology commercialization and startup hub functions of the 17 regional Creative Economy Innovation Centers, and develop the Pangyo Creative Economy Valley, scheduled to begin construction at the end of this year, into a global innovation cluster where promising ICT startups, high-tech ventures, and investors from Asia and around the world will gather.

We will expand support for the commercialization of ideas and technologies. To support the commercialization of creative ideas from the public and excellent public research results, we will lead the creation of startups based on outstanding ideas through initiatives such as the 6-Month Challenge Platform, and actively support the establishment of a virtuous cycle ecosystem for venture capital through partnerships with private accelerators. We also plan to establish a new Korean-style I-Corps program to encourage technology commercialization and startup exploration among highly skilled personnel holding master's and doctoral degrees.

To prepare for a science and technology-based future, we will continuously expand investment for the creation of new creative knowledge and the early industrialization of promising future fields. Support for individual research for next year has been set at 607.5 billion won, an increase of 20 billion won (3.4%) from this year, and support for group research has been set at 158.2 billion won, an increase of 9.3 billion won (6.3%) from this year. In the field of fundamental research, we plan to launch new developments in unmanned vehicle technologies, such as drones, to expand investment in the development of core source technologies for securing new global markets and to actively respond to future trends.

Next year, the development of space nuclear power is expected to be revitalized, with the full-scale implementation of the lunar exploration project (10 billion won reflected in the government's proposal) and the joint development of advanced domestic small and medium-sized reactors (SMART).

Investing 3 billion won to lay the foundation for revitalizing the fintech industry

In order to concretely realize the "K-ICT Strategy" established last March, a significant investment in the budget is notable, including the launch of the discovery and demonstration of new growth engines (39.1 billion won) through the convergence of advanced ICT technologies such as IoT, big data, and cloud with other fields such as medical, financial, transportation, and urban sectors, as well as the acceleration of the pan-governmental Giga Korea project for the world's first demonstration of 5G technology and the timely implementation of the fast and convenient PyeongChang K-ICT Winter Olympics.

In order to establish a foundation for the sustainable development of software and digital content, which are the core basis of IT advancement, we will strengthen support for elementary and secondary software education in cooperation with the Ministry of Education, including expanding the operation of SW Education Leading Schools and SW Meister High Schools. Additionally, we will support innovation in university software education that reflects the demands of the industrial field by integrating existing small-scale and fragmented support programs into SW-focused universities.

In addition, the budget was increased to strengthen the functions of KIC and overseas IT support centers to support the global expansion and overseas startups of small and medium-sized enterprises and venture companies, and to respond promptly to the demand for continuous new market development and overseas expansion projects.

Min Won-ki, Head of Planning and Coordination at the Ministry of Science, ICT and Future Planning, explained, “As we enter the fourth year since the launch of the Ministry, we plan to focus our investments on accelerating the creation of tangible results for the creative economy, preparing for the future through science and technology and ICT, and building a foundation for creating new industries.”