According to a Japanese research report, Korea’s research and development (R&D) investment as a share of gross domestic product (GDP) has surpassed 5%, reaching the world’s second-highest level after Israel. With the Korean government also deciding to inject more than KRW 200 trillion into R&D by 2030, attention is focusing on whether this increased investment will translate into technological self-reliance and research outcomes.

According to the report “Science and Technology Indicators 2026,” released on the 9th by the National Institute of Science and Technology Policy under Japan’s Ministry of Education, Culture, Sports, Science and Technology, Korea’s R&D expenditure in 2024 totaled KRW 131,046.2 billion, equivalent to 5.13% of GDP. This figure combines investments by corporations, the government, universities, and other entities. The ratio of R&D expenditure to GDP shows how much is invested in R&D relative to the size of the economy, and among 24 countries and regions surveyed, Korea ranked second after Israel (6.76%). The gap with Sweden (3.56%), the United States and Japan (3.44% each), China (2.69%), and the 27 member states of the European Union (2.13%) was also significant.

This report was first published in 1991 and has been issued annually since 2005. On Korea, it stated, “Among major countries, it ranks first, and since the 2000s the total R&D expenditure as a share of GDP has increased rapidly,” adding, “Together with China, it shows a trend of rising in tandem with economic expansion.”

In terms of total R&D investment, China surpassed the United States for the first time. When converted into Japanese yen, China’s R&D expenditure was JPY 97.1401 trillion, compared with JPY 95.3387 trillion for the United States.

Korea ranked fifth among major comparison countries, following Japan and Germany. By funding source, Korean corporate entities accounted for 78.5% of R&D expenditure and the government for 20.5%. The report noted, “In the long term, the share of the corporate sector is increasing, while that of universities and public institutions is declining.”

China also overtook the United States in research impact. In the 10% most-cited papers by field between 2022 and 2024, China accounted for 40.6%, exceeding the United States at 14.4%. Korea ranked eighth with a 2.1% share.

The Korean government is expanding R&D investment to support technological self-reliance in key industries and to bolster funding for basic research. According to a mid- to long-term investment strategy announced on the 1st by the Ministry of Science and ICT, the government plans to inject more than KRW 200 trillion into R&D from 2026 to 2030. This is separate from the nation’s total R&D expenditure including private-sector investment. The government’s R&D budget proposal for next year has been set at KRW 39.5 trillion, up 11.2% from this year.

The government plans to concentrate investment in artificial intelligence (AI), semiconductors, and robotics. In the semiconductor sector, it aims to raise the localization rate of materials, components, and equipment from 30% to 50% by 2030.

Popular News