Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Industrial R&D Strategic Planning and Investment Council’s first meeting of 2026 on January 28, 2026, at the Korea Trade Insurance Corporation (K-SURE). Chaired by Vice Minister Moon Shin-hak, the meeting brought together experts from industry, academia, and research institutes. During the meeting, MOTIR announced the Industrial R&D Innovation Plan and participants discussed an action plan for launching new projects in 2026.

Drawing on extensive input from industry, the Industrial R&D Innovation Plan was developed to set a new direction and lay the foundation for industrial technology innovation, as major economies step up their industrial policy initiatives and the global AI race intensifies.

Under the plan, MOTIR will move away from a Seoul Capital Area-centric approach and fragmented, small-scale projects and shift the industrial R&D framework toward three innovation pillars: regional R&D, R&D for the M.AX Alliance, and R&D to strengthen industrial competitiveness.

First, to strengthen regional R&D and support the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative, MOTIR will roll out a KRW 2.0 trillion R&D package and foster advanced industries in key industrial areas, including the Southern Semiconductor Belt and the Battery Triangle Belt. The ministry will also expand R&D to help regions affected by industrial downturns regain momentum, including through the KRW 1.5 trillion K-Chemistry Industry Transformation R&D Project. When selecting projects, MOTIR will require reviewers to consider regional spillover effects—such as impacts on investment, jobs, and production—and will introduce region-specific project types. In line with the same initiative, the ministry will designate six additional graduate programs specializing in advanced industries and establish 30 joint industry–academia labs by 2030, with regional innovation institutions - including public research institutes – serving as anchors. 

Second, MOTIR will restructure R&D around the M.AX Alliance. By 2030, the ministry will build 500 AI factories and develop 15 leading manufacturing AI models through collaboration among large companies, SMEs, and startups. MOTIR will also strengthen embedded-AI R&D to integrate AI into existing products, including autonomous ships and self-driving vehicles. In addition, MOTIR will support the development of humanoids designed for industrial use and fund 10 on-site demonstration projects in 2026. MOTIR will also launch a KRW 0.7 trillion program this year to develop K-On-Device AI semiconductors.

Third, MOTIR will strengthen industrial competitiveness through R&D by launching the Industrial Leap Technology Project, led by demand-side anchor companies that serve as the backbone of industrial ecosystems, to open new opportunities for partner firms and maximize the industrial impact of R&D. Pilot projects will begin in 2026, with large-scale projects to follow starting in 2027.

In addition, MOTIR will strengthen the foundations for R&D innovation by easing R&D regulations, strengthening innovation capacity, and cutting unnecessary paperwork. The ministry will select 30 priority regulatory reform tasks for advanced and emerging industries and introduce “regulation-free R&D,” which will launch regulatory consultations in parallel with R&D projects to grant special exemptions in a timely manner.

MOTIR will establish a KRW 1.0 trillion commercialization fund, direct investment toward initiatives such as the Industrial Leap Technology Project, and incorporate market demand—including investor input—in R&D planning. The ministry will also foster technical talent across the full career pipeline—from postdoctoral researchers to early-career researchers and “star engineers”—and designate an “Engineers’ Day.” To encourage results-driven R&D, MOTIR will raise the share of large projects worth KRW 10 billion or more to 30 percent by 2030 and streamline procedures to discontinue or revise projects when market shifts reduce their relevance. MOTIR will also cut paperwork—by allowing research teams to self-settle research expenses and waiving documentation for small reimbursements—so project teams can focus on substantive work.

Vice Minister Moon noted that “as protectionism gains ground and the rules-based international order weakens, industrial technology competitiveness is now critical to safeguarding a nation’s industry, economy, and security.” He added that “MOTIR has concluded that industrial technology innovation is the only path for Korean industry to achieve its next leap forward,” noting that “competition in AI innovation and the AI-driven transformation of industries is intensifying as countries ramp up technology investment and accelerate innovation.” He called on companies and experts in engineering and industrial technology to work with the government to actively implement the Industrial R&D Innovation Plan.