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The 2026 R&D Budget Reaches a Record 35 Trillion Won: Why You Should Begin Preparing with LUMOS Now

Nov 20, 2025

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The government has proposed a record-high national R&D budget of 35 trillion KRW for 2026. In particular, the Ministry of SMEs and Startups (MSS) budget has been set at 16.8 trillion KRW, a 10.5% increase from the previous year, to actively support the growth of startups and SMEs. This is welcome news for the startup ecosystem, which has undergone a prolonged venture funding winter.

What is changing with the 2026 MSS budget?

The proposed 2026 budget for the Ministry of SMEs and Startups is 16.8449 trillion KRW. This is a record-high scale, representing an increase of 1.5961 trillion KRW (10.5%) compared to the 2025 budget of 15.2488 trillion KRW. This year's budget focuses on strengthening the support system throughout the entire lifecycle of startups, from initial establishment to scale-up.

Which 5 core areas will receive focused investment?

The government has strategically allocated the 2026 budget to five core areas. Let's look at the key details of each category.

1. Leading innovation to leap forward as a top 4 start-up & venture nation - 4.3886 trillion KRW

Key Support Details

Fund of Funds investment: A record-high of 1.1 trillion KRW (including 550.0 billion KRW for AI and deep-tech)
Second-chance fund: 80.0 billion KRW investment to form a 133.3 billion KRW fund (more than double the previous year)
TIPS-style R&D: 668.4 billion KRW (step-by-step support system for start up, growth, and global expansion)
Super Gap Startup 1000+ Project: 145.8 billion KRW (supporting 746 companies)
Unicorn Bridge: 32.0 billion KRW for a new program (selecting 50 companies, with support up to 1.6 billion KRW)

LUMOS Insights 💡
The Fund of Funds budget is set at an all-time high, and the second-chance fund has more than doubled. This presents a renewed opportunity for founders who have experienced previous business closures. For 2026, the TIPS program will be integrated into a general track and funding will increase up to 800 million KRW. Startups should focus immediately on securing private pre-investment and preparing their business plans.

2. Supporting digital-AI transformation and genuine growth - 3.7464 trillion KRW

Key Support Details

ICT-convergence smart factory deployment and expansion: 436.6 billion KRW (an 84.9% increase from the previous year)
Rapid commercialization of applied AI products: 99.0 billion KRW in new support
SME R&D: 2.1955 trillion KRW (a 45% increase from the previous year, an all-time high)
Joint public-private technology commercialization: 129.9 billion KRW
Export vouchers: 150.2 billion KRW
Global Fund (LASER): 17.7 billion KRW

LUMOS Insights 💡
As the R&D budget has increased significantly, opportunities have opened up for all businesses in need of technology development. Research and development is not limited to engineering-led teams. R&D is essential for the long-term growth of any business in any sector.

3. Supporting crisis recovery and sustainable growth for micro-enterprises - 5.5279 trillion KRW

Key Support Details

Business stabilization vouchers for micro-enterprises: 579.0 billion KRW (supporting 2.3 million micro-businesses with annual sales under 104 million KRW, providing up to 250,000 KRW)
Policy funds for micro-enterprises: 3.3620 trillion KRW
Commercial District Renaissance 2.0: 37.8 billion KRW (customized development by trading area size)
Smart micro-workshops: 9.8 billion KRW (supporting 2,000 workshops)
AI utilization support for micro-enterprises: 11.4 billion KRW

4. Revitalizing regional economies by establishing regional business ecosystems - 1.3175 trillion KRW

Key Support Details

Region-led grand AI transformation: 35.0 billion KRW
Customized voucher support for regional enterprises: 65.0 billion KRW
Regional startup festivals: 3.6 billion KRW
R&D expansion in Global Innovation Special Zones: 8.3 billion KRW
Regional Innovation Strategy Fund: 95.5 billion KRW

5. Developing empty growth ecosystems to prosper together - 572.5 billion KRW

Key Support Details

Win-win cooperation between large companies and SMEs: 20.1 billion KRW (expanded from last year)
Fostering technology protection leading companies: 5.1 billion KRW
Support for corporate succession and M&As: 850 million KRW for a new program
Fostering K-Beauty clusters: 3.0 billion KRW for a new program

Why startups need to prepare now

The meaning of the budget increase

The record-large R&D budget proposal signifies the government's strong commitment to nurturing innovative companies. This is an exceptional opportunity for startups that have faced difficulties during the multi-year funding winter.

R&D is accessible to all companies

Many founders believe that because their company is not technically a deep-tech enterprise, they do not qualify. However, R&D is not restricted to development led solely by engineering founders. Research and development can occur across all business domains, including service improvement, process innovation, and new product development, and is essential for long-term growth.

The competition has already begun

With the 2026 budget initialized, many enterprises have already begun preparing their applications. In particular, highly competitive programs like TIPS, R&D vouchers, and commercialization support expect high volume. Thorough preparation starting now is necessary to increase the probability of selection.

Preparing for 2026 with LUMOS

In preparation for the 2026 national R&D programs, LUMOS is planning to update its AI R&D Proposal Generation Feature. It will support the entire process from complex draft preparation to grant budget management, ensuring even first-time applicants can easily navigate the process.

Preparing with LUMOS starting now will improve your likelihood of selection for 2026 national R&D funds.

Apply for National R&D Programs with LUMOS

Does preparing for national R&D programs feel overwhelming? LUMOS automates the entire journey from business plan writing to fund execution and final accounting, allowing startups to focus on their core operations.