2027 budget proposal set at 710.6 billion won, up 79.8 billion won from this year — largest increase in history
South Korea's intellectual property innovation ecosystem is set to become more robust and resilient as the government moves to strengthen support for ideas and IP-driven growth.
The Korean Intellectual Property Office announced Tuesday that it has drawn up a 2027 budget proposal of 710.6 billion won ($517 million), a 79.8 billion won increase — or 12.7 percent — from this year and the largest single-year budget increase in the agency's history. Funding directly allocated to core IP programs covering creation, utilization and protection also expanded sharply, rising 58.4 billion won, or 14.1 percent, to 473.1 billion won.
The office said it will concentrate next year's budget on four priority areas: monetizing ideas and intellectual property, strengthening the protection of technology and IP, building a locally led IP ecosystem, and leading the AI transformation of intellectual property.
Building a society where ideas and IP generate revenue
The office plans to create an environment in which creative ideas and intellectual property can generate income. It will launch a new dedicated program to help high-quality patents secure overseas protection so they can earn royalty revenue through licensing and similar arrangements abroad. To support smoother financing for innovative companies, the office will also resume contributions to its fund-of-funds vehicle to attract private investment, with a particular focus on expanding an overseas monetization fund through those contributions.
Support for IP-based commercialization will also be expanded to help small and medium-sized enterprises turn strong technologies into innovative products. The number of IP transaction specialists will be increased from 22 in 2026 to 36 in 2027 to strengthen the IP trading infrastructure. A new consulting service for IP transactions and commercialization will also be introduced for technology licensing offices at universities and public research institutions to promote the private-sector use of publicly developed technologies.
Stronger protection of technology and intellectual property
As South Korean companies expand overseas, the risk of technology leakage — including trade secrets — is also rising. The office will move to build a systematic framework to prevent the outflow of core national technologies. By analyzing key industrial sectors such as semiconductors and shipbuilding, it will identify critical areas requiring protection, assess the technology management systems of companies in those sectors, pinpoint vulnerabilities, and provide tailored protection strategies.
The office also plans to establish its first dedicated R&D program for IP protection, aimed at securing core technologies to proactively counter the distribution of sophisticated counterfeit goods and industrial espionage. It will additionally launch international joint investigations with Interpol and other partners to strengthen overseas enforcement against counterfeit products bearing Korean brands.
Supporting regional growth through intellectual property
The office will help regions convert their local heritage assets and specialized industries into intellectual property, and use that foundation to support youth entrepreneurship and growth. Programs will assist in identifying new business ideas from local heritage assets and developing brands and designs to generate added value. Comprehensive support — covering IP-based commercialization strategies and product development — will be provided to encourage young people to start businesses rooted in regionally specialized industries. A youth IP voucher program will also be included, providing timely IP services such as filing cost support to promote youth entrepreneurship.
In addition, the next-generation gifted entrepreneur education program — previously offered only in the central region through KAIST and the southeastern region through Postech — will be extended to the southwestern region, establishing a nationwide foundation for training the next generation of IP talent.
Leading the AI transformation of intellectual property
The office will move in earnest to introduce AI across all areas of IP administration. It plans to develop a next-generation AI-powered patent search system to deliver faster and more accurate IP examination and trial services.
IP information — covering applications, disputes and more — has long been difficult for the general public to use due to its highly specialized nature, despite its practical value. To improve public access and convenience, the office will add AI-based summary and comparison features to its IP information search service KIPRIS, and will develop a new AI agent capable of searching and processing IP dispute information.
"This budget proposal is the first drawn up since the office was established, and it reflects our new vision and policy direction," Commissioner Kim Yong-seon said. "The budget will be concentrated particularly on actively supporting the monetization of overseas patents generated through government R&D, and on thoroughly protecting the nation's advanced strategic industries from the threat of overseas technology leakage."
He added that the office aims to "build an innovation ecosystem where ideas and intellectual property become growth assets, driving an irreplaceable leap forward for the Korean economy."
kwonhl@heraldcorp.com
