Industry ministry allocates $100 mil. to boost AI, renewable energy

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The Ministry of Trade, Industry and Energy has allocated 495.6 billion won ($361.36 million) in a supplementary budget, including 137.8 billion won earmarked for supporting the artificial intelligence (AI) and renewable energy industries, the ministry said Thursday.

The second supplementary budget plan was approved during a Cabinet meeting presided over by President Lee Jae Myung and will be finalized pending approval by the National Assembly’s plenary session.

The ministry plans to spend 12.8 billion won to foster successful cases of industrial AI adoption across various sectors by launching dissemination projects for AI solutions and accelerating the development of the industrial AI ecosystem. An additional 2.2 billion won will be used to developing AI- and robot-based pharmaceutical manufacturing systems.

In response to the climate crisis, the ministry has allocated an additional 111.8 billion won to expand solar power installations in residential and commercial buildings, as well as increasing loans for solar energy production and related facilities to promote renewable energy generation.

Funding for next-generation solar cell R&D projects will also increase by 1 billion won. In addition, 10 billion won will be provided to the Korea Institute of Energy Technology to cultivate talent capable of leading the future energy industry.

In addition to the expanded budget for AI and renewable energy, the ministry will allocate further funds to support economic recovery and boost exports.

Trade Minister Ahn Duk-geun tours the Korea Pavilion at Expo 2025 Osaka in Osaka, Japan, May 13. Courtesy of Ministry of Trade, Industry and Energy

The ministry has allocated 326.1 billion won to provide a 10 percent rebate on purchases of high-efficiency home appliances, such as televisions and air conditioners, across the country. Individual purchasers will be eligible for a refund of up to 300,000 won.

In response to challenges faced by industries such as steel and petrochemicals, the ministry will designate regions with a high concentration of these sectors as industrial crisis zones and implement support projects worth 3.7 billion won for those areas.

The project will include measures to ease loan burdens for local companies, as well as support for technology upgrades, commercialization and consulting services.

An additional 4.3 billion won has been allocated to revitalize local economies, including helping to finance local exhibitions.

To boost exports, the ministry will launch a new program to promote the overseas sales of items such as electric power equipment, and support businesses in exploring new markets and enhancing marketing efforts through initiatives like K-content expos.

As global demand for electric power equipment is expected to surge with the rise of AI and high-tech industries, the government plans to allocate 15 billion won to help local manufacturers finance production expansion and new product development at a lower interest to reach overseas markets.

For K-culture-related goods, including beauty, food, household items and merchandise, an additional 2.4 billion won has been earmarked to allow more companies to participate in the Korea Brand & Entertainment EXPO, scheduled to be held in New York this November. The budget will also allow the ministry to launch additional expos in other regions.

A further 2.7 billion won will be used to invite more foreign buyers to local exhibitions and increase the number of overseas trade projects for local companies.

“Once the supplementary budget passes the National Assembly’s review, the ministry will implement it swiftly and ensure thorough management of the budget,” a ministry official said.