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2026-09-157 min read0

Korea Abolishes Grade-Based National R&D Evaluation and Adopts Moving Targets in 2027 — What SMEs Running Government R&D Projects Must Change

Starting in 2027, Korea replaces grade-based R&D evaluation with selection of outstanding projects and adopts moving targets. Here's what changes in evaluation and settlement, and how SMEs should prepare.

KITIM Consulting Team

What's Changing: The August 31, 2026 R&D Evaluation and Administration Reform

On August 31, 2026, the Korean government announced a reform of how national R&D projects are evaluated and administered. The headline: the outcome-based grading and scoring system is being scrapped in favor of selecting outstanding projects and rewarding them with incentives.

  • Ranking projects by letter grades or scores will give way to identifying standout projects
  • The new evaluation framework is due by October 2026, and the reformed system takes effect in 2027
  • It builds on May's paperwork reduction, which eliminated 1,952 of 2,171 administrative forms (roughly 90%)
  • SMEs applying for or running projects this year should start preparing for the 2027 criteria now.

    What "Excellent Even If It Fails" Really Means

    The most talked-about change is that a project can be named outstanding even if it misses its targets. If the research produced meaningful data or knowledge, that value can be recognized with incentives such as follow-on funding or government awards.

    But there are a few common misunderstandings:

  • Diligent-performance reviews and sanctions remain in place. Dropping grades does not mean dropping penalties for poor execution
  • Misuse of research funds, work that deviates from the plan, and missing reports can still lead to participation bans and fund recovery
  • To have a "failure" recognized, you need data showing why it fell short and what was learned
  • Moving Targets: How to Adjust Goals Mid-Project

    The moving-target system lets you revise research goals partway through when technology or market conditions shift. If a competitor gets there first or a customer changes its specs, you no longer have to stick with the original target.

    Approval depends on evidence:

  • Track technology trends: compile patent searches, competitor launches, and conference papers every quarter
  • Build a market record: keep dated copies of customer requirement changes, RFQs, and market research
  • Separate your goals: list research targets (performance and technical metrics) apart from commercialization targets (revenue and buyers) in the proposal, so you can clearly explain what changed and why
  • Changes in Research Administration and Settlement

    Paperwork is getting lighter as well. Under May's forms reform, projects announced on IRIS since July 2026 use a checklist-based process, and agencies can no longer request documents beyond the approved forms. This reform adds a cross-ministry standard settlement guide and a casebook of eligible and ineligible expenses, both on the way.

    That doesn't mean documentation can slide. SMEs still need to watch:

  • Whether reported personnel participation rates match actual work records
  • Links between material purchases and lab notebook usage
  • Contracts and deliverables for outsourced or commissioned work
  • Once the casebook is out, compare it against your most-used expense categories to flag risky items early
  • 2027 Checklist for Applicants and Current Grantees

  • New projects: rebuild proposals around ambition and broader impact rather than just the likelihood of hitting targets
  • Ongoing projects: for interim and final reviews, document failed experiments and their lessons, not just successes
  • Ministry timelines: the Ministry of SMEs and Startups, the Ministry of Trade and Industry, and others may phase in the changes differently, so check the October framework and each agency's guidance
  • How KITIM Can Help

    The Korea Institute of Technology Innovation Management (KITIM) helps companies redesign R&D proposals and prepare for presentation reviews under the new framework. For ongoing projects, we also support moving-target change requests, settlement documentation checks, and other day-to-day project management. If you're preparing a 2027 application or unsure how the new evaluations will affect your current project, reach out through KITIM's contact page to schedule a consultation.

    National R&D Evaluation ReformMoving TargetR&D Administration SimplificationGovernment R&D Project ManagementR&D Cost SettlementSME R&D
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