Korean gov’t mulls abolishing R&D preliminary feasibility studies

[Graphics by Song Ji-yoon]

The South Korean government is considering abolishing preliminary feasibility studies (PFS) for national research and development (R&D) projects worth over 50 billion won ($36.28 million) in a move to accelerate basic research and applied development projects amid intensifying competition in artificial intelligence (AI) chips, secondary batteries and other advanced technologies.

According to a government source on Sunday, the country’s Ministry of Economy and Finance and the Ministry of Science and ICT are considering abolishing the PFS for national R&D projects.

“The relevant ministries are discussing ways to improve PFS measures, including the complete abolition of R&D PFS,” said a senior government official. “Details are expected to be unveiled at the upcoming National Fiscal Strategy Meeting in May.”

[Graphics by Song Ji-yoon]

R&D PFS targets national projects worth over 50 billion won and fiscal support of over 30 billion won. The government introduced the program in 2008 to efficiently execute its finances.

R&D PFS is managed by the Korea Institute of Science and Technology Evaluation and Planning (KISTEP) under the Ministry of Science and ICT, while social overhead capital (SOC) PFS, including those of roads, ports, and railways, is led by the Korea Development Institute (KDI).

Critics noted that R&D PFS tends to slow down the process of securing technology, increasing the risk of falling behind in the global advanced industry competition.

R&D PFS evaluates technology, policy effects, and economic feasibility to determine whether a project is worthy of government funding, which typically takes seven months. It is also criticized for the technical difficulty of evaluating new technology R&D in advance.