South Korea plans to invest more than 30 trillion won ($23 billion) over the next five years to foster 12 national strategic technologies, including artificial intelligence (AI), semiconductors, advanced biotechnology and quantum technology.
Key projects within these strategic areas will be selected, and over 3 trillion won will be allocated to develop next-generation secondary batteries and small modular nuclear reactors (SMRs) by 2033. The government also plans to expedite the development of quantum computers by exempting these projects from preliminary feasibility studies.
The Ministry of Science and ICT announced this initiative, dubbed the ‘First National Strategic Technology Nurture Plan,’ on August 26. This plan will be implemented over five years, from 2023 to 2028.
The 12 national strategic technologies selected by the government include semiconductors and displays, secondary batteries, next-generation nuclear power, advanced biotechnology, aerospace and marine technology, hydrogen energy, AI, next-generation telecommunication and quantum technology. The government plans to invest around 5 trillion won in these sectors this year, with more than 30 trillion won earmarked over the five-year period. AI and semiconductors, advanced biotechnology and quantum technology have been identified as game-changers, with concentrated budget allocations.
“The plan focuses on developing new technologies that can be commercialized,” said a government official. “We aim to achieve tangible results within the given timeframe by selecting and supporting specific research and development projects.” The government also aims to foster 15 new unicorn companies (startups with a valuation of over 1 trillion won) within these strategic sectors over the next five years.
The broader aim of the plan is to identify and nurture industries that could later replace the country’s current flagship industries, including semiconductors, automobiles, and petrochemicals. This plan reflects a sense of urgency in securing leadership in future industries amid the rapid shift of the global industrial landscape, driven by technologies like generative AI.
The government’s core objective is to position Korea among the world’s top three players in AI and semiconductors, advanced biotechnology, and quantum technology, which are fields it identifies as game-changers that have the potential to overturn existing market dynamics. Since the technology gap between Korea and more developed countries in these areas is significant, the government plans to invest roughly 3.4 trillion won in these three game-changer areas next year—1.2 trillion won for AI semiconductors, 2.1 trillion won for advanced biotechnology and 170 billion won for quantum technology—to bridge the gap.
The goal is to expand Korea’s portfolio of world-leading technologies from the current three—semiconductor displays, secondary batteries and next-generation telecommunications—to six. “The aim is to maintain Korea’s global technological competitiveness in key industries such as memory semiconductors, secondary batteries, and next-generation displays, while also creating new sources of economic growth,” a government official said.
The government’s strategy also includes creating an industrial ecosystem by encouraging collaboration between industry, academia and research institutions. As part of this effort, the government will identify and support 100 innovation hubs, including specialized research institutes that will lead research and commercialization efforts in the 12 national strategic technologies. These innovation hubs will include universities, research institutes and regional technology centers, for which the government will invest 5 billion won for ten years.
