South Korea Boosts AI R&D Budget by Over 100% for 2026
On August 22, 2025, a presidential panel in South Korea approved a major increase in government spending on research and development, with a sharp focus on artificial intelligence (AI). The total budget for R&D projects will rise by 19.3% in 2026, reaching a record 35.3 trillion won (approximately $25.35 billion), up from 29.6 trillion won in 2025.
Significant Increase in AI Funding
Funding dedicated specifically to AI-related research and development is set to more than double, climbing 106.1% to 2.3 trillion won. This surge reflects the government's commitment to advancing AI technologies across various sectors.
Besides standalone AI projects, other sectors will also receive investments that include AI components, such as the development of AI-powered defense equipment. This indicates a strategic integration of AI into both civilian and military applications.
New AI Strategy Committee and Action Plan
The presidential office announced plans to establish a national AI strategy committee. This body will coordinate AI policies and initiatives to ensure coherent progress. Additionally, the government is preparing to release South Korea’s comprehensive AI action plan in September, outlining concrete steps and priorities for the coming years.
What This Means for IT and Development Professionals
- The surge in AI R&D funding signals growing opportunities for developers, researchers, and companies working in AI technologies.
- Expect increased collaboration between government agencies and private sector players, especially in areas like AI-powered defense and advanced research.
- This expansion may lead to new projects, funding sources, and partnerships that IT professionals can tap into.
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