The government is opening up industrial research and development (R&D) to foreign institutions to discover and develop key technologies in areas vulnerable to becoming weak links in South Korea’s flagship industry value chains, such as “technology critical for leapfrogging,” “next-generation growth-oriented technology,” and “game-changer technology,” similar to the semiconductor packaging sector.
On Dec. 5, the Ministry of Trade, Industry, and Energy (MOTIE) announced the “Comprehensive Global Technology Collaboration Strategy” at a meeting of Chief Technology Officers (CTOs) from major companies held at the Four Seasons Hotel in Seoul, presided over by Bang Moon-kyu, minister of government policy coordination.
The MOTIE has outlined a significant direction to increase the share of international collaboration in industrial R&D with a total budget of 5.7 trillion won (US$4.33 billion) from a mere 6 percent this year to over 15 percent by 2028. The goal is to swiftly secure technologies that pose challenges for domestic independent development through collaborative research with overseas research institutions.
The expansion of international collaboration in industrial R&D is primarily divided into two categories: 80 key technologies for leapfrogging and 100 foundational technologies for industries. The focus on leapfrogging technologies includes critical technologies in areas such as semiconductors, secondary batteries, biotechnology, and robotics, where South Korean companies have competitiveness in end products but urgently need to secure core technologies due to vulnerabilities in the value chain. The goal is to commercialize these technologies within a relatively short period of five years.
Next year, an investment of 148.7 billion won will be allocated to initiate the development of 48 technologies, with a total investment of 1.2 trillion won by 2030. The MOTIE provided an example of leapfrogging technology, highlighting semiconductor packaging technology that maximizes performance by integrating heterogeneous semiconductor chips. This technology is expected to be secured through collaboration with the United States, Taiwan, and other countries, with an anticipated investment of 100 billion won in its development.
The government has initially narrowed down a list of 95 candidate technologies through discussions primarily involving domestic experts. These technologies span various fields such as high-resolution pixel technology for extended reality (XR) micro-displays, lithium-sulfur battery electrode technology, nucleic acid therapy development including for mRNA, and carbon steel technology for small modular reactors (SMR) for next-generation nuclear modules.
The development of the top 100 foundational technologies in industries focuses on creating South Korea’s “next-generation growth areas” with the goal of commercialization within the next decade. This includes technologies such as rare-earth-free permanent magnets for electric vehicle motors, next-generation AI computing, semiconductors, and new cell rejuvenation drugs.
Next year, an investment of 66.5 billion won will kickstart the research and development of 50 projects, with a total investment reaching 687 billion won by 2028.
A collaboration system with the world’s leading research institutions possessing foundational technologies in each field will be established based on the demand of domestic companies. “Industry Technology Cooperation Centers” will be set up in top-notch research institutions such as the Massachusetts Institute of Technology and Stanford University.
The government has decided to mandate the obligation for domestic researchers dispatched to overseas institutions to directly participate in research and ensure the right to implement intellectual property rights for technologies developed through joint efforts, enabling companies to actually utilize them.
Through international collaborative R&D efforts, approximately 1.9 trillion won is planned to be invested in securing a total of 180 technologies. When selecting recipients for international collaborative research support, the government plans to use multi-layer verification, including anonymous expert evaluations, to identify technologies where international cooperation is deemed essential.
In addition to the 180 projects, the government plans to initiate a 1 trillion won preliminary feasibility study project by 2025 with the goal of securing 10 “game-changer technologies” to replace existing key industries. These technologies include personalized artificial organs and immersive spatial computing.
Since President Yoon Suk-yeol pointed out the problems with the “share and divide R&D” approach in June, the government has been in the process of shifting its policy direction by reducing domestic R&D budgets and significantly expanding R&D and technology collaboration with the United States and the European Union (EU).
As of this year, South Korea’s national R&D budget amounts to 31 trillion won (US$23.57 billion). The Ministry of Science and ICT manages the largest portion, approximately 9.7 trillion won (US$7.38 billion), with a focus on basic fields. The MOTIE manages around 5.7 trillion won (US$4.33 billion), with a focus on projects with high industrial applicability.